A Charitable Gift Annuity is an arrangement which transfers the ownership asset(s) from an individual to a non-profit organization. The donor, also known as the annuitant, then receives a fixed income stream for the remainder of their life. The amount of the payment is determined by the value of assets which have been transferred.
Think of the Charitable Gift annuity like a savings account. Each month a fixed amount is withdrawn from the total value of the account.
As long as the annuitant is receiving income the value of the annuity is continually drawn from. Once the annuitant is no longer receiving income the value of the remaining annuity is transferred to the non-profit organization.
The annuities simultaneously provide a charitable donation, a partial income tax deduction for the donation, and a guaranteed lifetime income stream to the annuitant and sometimes a spouse or other beneficiary.
A Charitable Gift Annuity may be funded with cash, securities or other assets. Initial funding may be as little as $5,000.
Some 20 universities, main line denominations and others issue the self-insured gift annuity. Link Charity, a partner of Global Aid Network, is one of the very few which may distribute proceeds to any beneficiaries of the annuitant’s choosing. This has made Link Charity a Canadian Leader in issuing these agreements.
- Guaranteed income for the rest of your life
- Attractive payment rates for life
- No management required
- Tax advantages – all or most of your Charitable Gift Annuity is income tax exempt
- An immediate tax receipt of 20-25% of the capital amount
- Single life and joint life agreements available
- At the end of life, the remainder of your annuity agreement becomes a gift for your favourite charities
- Support is made to multiply charities under one annuity, saving time, money and effort
- Link Charity’s Charitable Gift Annuities have provided the highest level of return to charities and donors over Link Charity’s 15 year history
