Charitable gift annuities have tax benefits. This type of gift creates a tax deduction for the donor in the year the gift is made. Charitable gift annuities also provide favorable capital gain treatment for the contributed property, which means that donors may want to use highly appreciated stocks to create the gift. Gift annuities may be made for smaller amounts. You can create a series of gift annuities.
Some donors like to create a new charitable gift annuity each year.
Gift annuities have set benefits. The amount of the income stream is set at the time the gift annuity is created, and the payment is guaranteed by the WMU Foundation. The rate of income that you receive is based on your age at the time you create the gift annuity if you are the annuitant, or it is based on the age of whomever you choose to be the annuitant. You receive your payments on a quarterly, semi-annual, or annual basis as you prefer. These rates are particularly attractive when compared to rates paid by certificates of deposit, stocks, or even traditional bonds.