Charitable gift annuities are attractive to donors who wish to make a significant gift but still require the income generated by the assets. This transaction is set up so that a minimum of 50% of the principal amount of the annuity is available to the charity following the death of the annuitant(s).
The OHF purchases a commercial annuity that will provide you with a fixed amount, in regular payments, throughout your lifetime. It is also possible to arrange for another person or surviving spouse to receive payments.
Annuities are high quality, guaranteed investments that meet the needs donors 65 years or older and are conservative investors. If you are in a high tax bracket, you might want to use this vehicle to realize more tax-free income.
An initial tax receipt is provided for the amount of the contribution that exceeds the amount used to purchase the annuity. Depending on your age at the time of the gift, a substantial portion of the annuity income is tax-free.
The above information is not intended as legal or financial planning advice. A Charitable Gift Annuity is an irrevocable gift and therefore requires careful planning and consultation with your investment, legal or financial advisor.