A Charitable Gift Annuity

Gift Annuity (immediate) CGA: Donor transfers appreciated stock to charitable organization in exchange for organization's agreement to pay a specified annuity to the donor (and/or another beneficiary). Benefits: Donor (and/or another beneficiary) receives income stream; a portion of each annuity payment will be free from income tax; capital gains tax reduced and spread out; income tax deduction calculated on an actuarial basis.Gift Annuity (deferred) DCGA: Donor transfers appreciated stock to charitable organization in exchange for organization's agreement to pay a specified annuity to the donor (and/or another beneficiary) in the future (e.g., after retirement). Benefits: All of the same benefits as with an immediate annuity (above), with the added benefit of supplemental retirement income on a tax-favored basis.