Flo's Legacy Fund
CHARITABLE GIFT ANNUITY
A gift of cash or appreciated property to a charity in exchange for lifetime annual payments, the principal of the annuity is received by the charity at the donor's death.
DONOR PROFILE: Donor wants to enhance retirement income for life.
AGE: 65+ (or 40+ for Deferred Gift Annuity)
ESTATE VALUE: All
ANNUAL INCOME: Low - High
SUITABLE ASSETS: Generally, cash and regularly traded stocks and bonds. Occasionally, other assets may be acepted by the individual charity.
ADVANTAGES TO DONOR: Immediate tax deduction on sale of assets. Capital gains taxes spread over donor's life expectancy. Annual installment income. Agreement not subject to probate.
DONOR CONTROL: Generally, none However, donor may impose restrictions on designation or use
BENEFITS TO CHARITY: Immediate possession and use of asset. Possibility of additional benefits from excess investment earnings and mortality of savings.
DISPOSITION OF INCOME: Donor receives fixed, guaranteed annuity from charity on gift assets. Actual earnings on gift assets remain with charity.
DISPOSITION OF PRINCIPAL: Charity has complete control over the use of gift assets.