The Tax Law of Charitable Giving, 5th Edition

Chapter FourteenCharitable Gift Annuities

1. § 14.1 Contract as Vehicle Form
2. § 14.2 Tax Treatment to Donor
3. § 14.3 Deferred Payment Gift Annuities
   1. (a) Deferred Payment Gift Annuities in General
   2. (b) Tuition Annuity Programs
4. § 14.4 Estate and Gift Tax Consequences
5. § 14.5 Unrelated Business Income Implications
6. § 14.6 Unrelated Debt-Financed Income Implications
7. § 14.7 Contrast with Other Planned Gift Methods
8. § 14.8 Gift Annuities and Antitrust Laws
9. § 14.9 Gift Annuities and Securities Laws
10. § 14.10 Charitable Contribution Deduction

A form of planned gift vehicle is the charitable gift annuity,¹ created by means of an agreement between a donor and a charitable organization, rather than by means of a split-interest trust.² The income interest is reflected in an annuity obligation of the donee charitable organization. Once the requirement to pay the annuity has expired, the remaining property becomes that of the charitable organization involved. A federal income tax deduction is generally available for the value of the remainder interest created by the contract.

§ 14.1 Contract as Vehicle Form

Unlike the charitable remainder trust, the pooled income fund, and the charitable lead trust,³ the charitable gift annuity is not based on use of a split-interest trust. Rather, the annuity is reflected in an agreement between the donor and charitable donee whereby the donor agrees to make a gift of money and/or property and the donee agrees, in return, to provide the donor (and/or someone else) ...