Charitable Gift Annuities Can Provide Benefits

By |2020-04-13T19:38:02+00:00July 8th, 2017|Annuities|

Does a Charitable Gift Annuity make sense for you?


If you have big dreams, a big heart…..but a shrinking pocket book (and resources), then a Charitable Gift Annuity may be an option for you.

As a professional Insurance & Retirement advisor, I have been asked, “What are some of the non-traditional charitable gift giving opportunities by which someone may support their church or favorite charity?”

Other than cash, what resources can one use to support charities without depleting the resources that may be needed to support their own needs and lifestyle?  I tell these big-hearted people with big dreams, but financial constraints, that a Charitable Gift Annuity may be an option for them.

The most current way of making donations to our favorite church or charity is by giving cash, usually in the form of a check.  There are advantages and disadvantages to this form of giving. First to note are the tax advantages to giving cash.  The charity gift may be deducted on the income tax return (limited to 59% of adjusted gross income). A disadvantage of giving cash is that the donor may have limited cash available at the time of the planned donation, making the gift amount smaller than desired.  If an emergency arises that depletes the cash resources, sadly, a decision may be made to skip the contribution entirely.  These are the times when the donor looks for other options.

A Charitable Gift Annuity is a unique type of annuity that allows a donor to transfer ownership of their current stocks, bonds, mutual funds or other appreciated assets to a registered 501 (3) c non-profit organization.  In exchange for the gift, the donor is guaranteed an agreed-on payment to themselves, their spouse if married, their heirs or the donors favorite charity.

Reverent C.J. Taylor, President and CEO of the Heartspring Methodist Foundation says, “Many persons own appreciated securities paying minimum dividends, which they have chosen not to sell due to capital gains consequences.”  (If the owner sells these securities, capital gains tax must be paid on the difference between their tax basis, i.e. the cost of the securities, and value at the time the securities are sold.)  When giving appreciated assets, the donor not only satisfies a need and desire to make a charitable gift, but is also able to earn a tax deduction on that gift.

If you have a dream to support your favorite charity, own appreciated assets, are concerned about market volatility and potential losses, and would like to exit your securities while minimizing capital gain taxes and reducing your income taxes, a Charitable Gift Annuity may be an option for you.

To discover if a Charitable Gift Annuity is the best solution for you and your family, you should first discuss this question with an annuity expert.  If you and your advisor believe other investment options should be investigated before you decide on how to invest your funds.  Your annuity advisor will help you understand annuity features and how they fit into your overall plan.  When selecting an advisor work with agents who represent top rated insurance companies; and choose advisors that offer annuities that are safe, secure, provide guaranteed lifetime income, without market risk.)

To discover if a Charitable Gift Annuity is an excellent choice for you and your family, contact an annuity expert or advisor. Select an advisor who represents top rated insurance companies and who offers annuities that are safe, secure, and provide guaranteed lifetime income without market risks. Your annuity advisor will help you understand the features of annuities and which annuities are appropriate to your needs and desires. He or she can also help you investigate other options before you decide how to invest your funds.

Together, you and your advisor can develop a personalized financial plan and can evaluate whether a Charitable Gift Annuity may be a unique and generous part of that plan.

As in all important decisions, make sure you understand the tax advantages and disadvantages of your actions. Always consult a licensed and authorized professional before making any final decisions.


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About the Author:

Joe Marullo Insurance & Retirement Services provides services and products which help mature individuals and families keep their savings up with inflation, protect their estate from losses to income taxes, and turn their estate into a guaranteed lifetime income. Website:

Office: (281) 668-9160 | Joe Marullo Insurance & Retirement Services