After TaxTax Playbook

Tax Playbook · Giving, strategically

Charitable gift annuities

You give cash or stock to a charity, and it pays you a fixed amount every year for life (or for two lives). You get a partial tax deduction up front, and part of each payment can come back tax-free for a while. The rate is locked in when you sign and won't grow with inflation, and you can never get the gift back. A $100,000 gift at a hypothetical 6% rate pays $6,000 a year; older donors get higher rates.

Good for: Anyone who wants lifetime payments plus a charitable tax deduction.

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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.