In return, APNM gives the donor a fixed income for life, a portion of which is tax-free. The annuity rate is based on the donor's age and annuity rates increase as age increases.
Most charities establish a minimum amount and age for establishing a charitable gift annuity.
The charity also negotiates a pay-out schedule with the donor, usually quarterly or annually. Cash is the asset typically used to establish a charitable gift annuity, but appreciated securities, including stocks, bonds and real property, can also be used. A donor should work with an attorney to calculate the tax deduction for a charitable gift annuity. The most important benefit of an APNM gift annuity is that it helps APNM work throughout New Mexico to accomplish its mission of promoting the humane treatment of animals and advancing the cause of animal rights.