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Charitable Gift Annuities vs. Commercial Annuities
We are sometimes asked how charitable gift annuities compare to commercial annuities offered by insurance companies. One big difference is that charitable gift annuities result in gifts to our programs that average about 50% of the amounts transferred by donors. These gifts occur because our payout rates are somewhat lower than commercial issuers would pay to persons of similar ages. Additionally, gift annuity donors can contribute appreciated securities for an annuity and escape part of the capital gains taxes.
| Features |
Gift Annuities |
Commercial Annuities |
| Payout Rates |
Lower – Based on Age |
Higher – Based on Age/Sex |
| Charitable deduction? |
Yes |
No |
| Partly tax-free payments? |
Yes |
Yes |
| Capital Gains Tax Savings? |
Yes |
No |
| Deferred Payments Possible? |
Yes |
Yes |
| Variable Payments Possible? |
No |
Yes |
| Survivor Beneficiary Permitted? |
Yes |
Yes |
Remember that the most important reason friends arrange gift annuities is their spirit of generosity and a desire to magnify their support through a gift that provides them with lifetime income. Please call our office if you would like a personal illustration of the benefits of a gift annuity.
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Copyright © 2008
by R&R Newkirk. All rights reserved.
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