I Want to Know How to Give Charitable Donations as Gifts
Understanding how to give charitable donations as gifts is a little more complicated than donating to a charity in someone’s name, though that can be done too. To give a repeating gift, donors can choose to designate a person other than themselves to receive regular payments from a charitable gift annuity agreement.
The National Christian Foundation (NCF) issues charitable gift annuities on GFA World’s behalf. The NCF states, “You make the gift (part of which is tax deductible), and then you receive fixed annuity payments each year for the remainder of your life. If you wish, payments can go to a family member or friend instead.”The NCF has a very careful and prudent investment policy, and charitable gift annuities are typically reinsured, providing maximum security and stability for annuity payouts.[1]
Opting for this approach to charitable giving, where you name another person as the recipient of a charitable gift annuity, also provides distinct advantages for the donor. As mentioned above, the initial gift qualifies for an immediate tax deduction. Charitable gift annuities are comparatively easy to set up and don’t require a lawyer, though consulting with an advisor is always a good idea. The assets used to fund the charitable gift annuity are removed from the taxable estate, helping to reduce or avoid estate taxes. Also, the person receiving the annuity payments is guaranteed a fixed rate that doesn’t fluctuate with the stock market, and a portion of the annuity income is often tax-free.[2]
Upon the death of the donor, the remainder of the gift goes to GFA, making the investment impactful not just for the designated recipient, but also for people across the globe in Africa and Asia. GFA relies on donations to fund our work with the poorest of the poor. Those cast aside by society, such as widows and orphans, often lack even the essentials that we sometimes take for granted. With financial and prayer support, GFA missionaires can do all they can to make sure the most people can hear about the God who cares for their every need and loves them so much that He sent His Son to die for them.[3]
Charitable donations of this nature can benefit many people: the donor, the recipient of annuity payments, GFA missionaries and the people where GFA ministers. Consider partnering with GFA through a uniquely useful charitable gift annuity.
You can contact GFA to discuss what is a charitable gift annuity and what it might look like in your situation.[4]
Learn more about what is a charitable gift annuity[1] “Charitable Gift Annuity.” National Christian Foundation. Accessed July 5, 2023. https://www.ncfgiving.com/solutions/charitable-gift-annuity/.
[2] “Planned Giving: The Charitable Gift Annuity.” GFA World. Accessed July 5, 2023. https://www.gfa.org/estate/cga/.
[3] “Widows and Abandoned Children.” GFA World. Accessed July 5, 2023. https://www.gfa.org/ministries/widows-abandoned-children/.
[4] “Non-cash Giving: Gospel for Asia Charitable Gift Annuity.” GFA World. Accessed July 5, 2023. https://www.gfa.org/plannedgiving/cga_contact/.