Gift annuities are very popular as they can provide a better guaranteed income stream to the donor plus tax benefits. Gift annuities involve you transferring assets in exchange for guaranteed life payments to yourself /or another person (annuitant.) Upon the dearth of the annuitant, the residual assets are available to Notre Dame Preparatory. Gift annuity rates vary depending on age.
Benefits of donating a charitable gift annuity include:
- Significant increase in your current income, depending on age.
- Provide a current year income tax deduction for up to six years.
- Provide a tax-free portion of the income.
- Reduction of your taxable estate.
- Opportunity to make a gift while providing security for you and /or another loved one.
- Possibly serving as a supplemental pension plan as they can begin providing immediately or they can be deferred annuities with distributions later in life.