In an example, Ms. Doe decides she wants to make gifts to the College of Pharmacy through her will and other long-term plans. She would like to make the gifts now, but she wishes to keep money stored away for future living expenses. After learning about charitable gift annuities, she discovers that she will continue to receive annual payments from her gift. This percentage is determined during the donation period based on current interest rates, age and number of payment recipients. Once a gift annuity is begun, however, the percentage does not change.
Payments can provide for others.
If Ms. Doe wanted to insure her only son would have money set aside for retirement, she could arrange for the annual payments to be given to her son. Her son would then receive the annual payment for the rest of his life. The annuities can also supplement your retirement planning. A charitable gift annuity is very easy to begin. Next time, we'll answer some frequent questions people have about charitable gift annuities.