A charitable gift annuity is a gift vehicle that falls in the category of planned giving. It involves a contract between a donor and a charity, whereby the donor transfers cash or property to the charity in exchange for a partial tax deduction and a lifetime stream of annual income from the charity.
The easiest way to set up a life income plan is through a charitable gift annuity. A gift annuity can be set up for a minimum of $5,000. Individuals transfer money or securities to The Salvation Army in exchange for The Salvation Army's commitment to pay you and another designated beneficiary a specified annuity for as long as you live.
Charitable gift annuities are popular financial vehicles for several reasons. Donors are guaranteed fixed payments for life, part of the payments may be tax free, and that the effective yield is extremely attractive. The "deferred" gift annuity (purchased now, but life income payments are scheduled later, e.g., at age 65) can be especially attractive to middle-aged professionals (ages 50-65) as it increases the payout amount and can be an excellent way to supplement retirement income.
Please contact John Gleason or Holly Moriarty in our Syracuse office, at (315) 434-1391 for information and/or an application. You may also call Aggie Plunkett, Donor Relations Director in Buffalo, at (716) 888-6208 for assistance.