CHARITABLE GIFT ANNUITIES

Involves a transfer of cash or other property to the organization. In return, payment to the donor of a specified amount determined by age is made to the donor during his/her lifetime. The rates paid are the most recent ones adopted by the Committee on Gift Annuities as agreed to by most major charities. There is an immediate income deduction for the present value of the amount ultimately to pass to the charity; part of the income received by the donor is also tax free.