I Want to Know How to Give Charitable Donations as Gifts
Why Consider Giving Charitable Donations as Gifts
Charitable giving continues to grow across the United States. In 2024, total charitable giving reached an estimated $592.50 billion, representing a 6.3% increase from the previous year, according to Giving USA 2025. This growth reflects Americans’ sustained commitment to supporting causes they believe in. Among the most meaningful forms of charitable giving is the practice of giving donations as gifts to loved ones. It honors family members while supporting important missions.
Families are increasingly viewing philanthropy as a shared endeavor. Research from BNY Mellon Wealth Management shows that over the next 25 years, Baby Boomers will pass along nearly $48 trillion in assets. These assets will go to heirs and charities. More than 61% of families encourage younger generations to give back as a shared value. This comes from data by the National Center for Family Philanthropy. Designating charitable gift annuity payments to family members combines this legacy-building goal with practical financial support.
Understanding how to give charitable donations as gifts is a little more complicated than donating to a charity in someone’s name. 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.
How It Works Through GFA
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). 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 partnership provides donors with professional oversight and institutional stability. The NCF has a very careful and prudent investment policy. Charitable gift annuities are typically reinsured, providing maximum security and stability for annuity payouts.[1]
This structure allows donors to support both a charitable mission and a loved one simultaneously. When you name someone else as the annuity recipient, you create a perfect gift that provides them with dependable income. It ensures that GFA World ultimately receives the remainder to continue its humanitarian work.
According to Fidelity, donors can designate up to one additional beneficiary beyond themselves. Payments can be structured to begin immediately or deferred to a future date. The flexibility to choose when payments start makes this option suitable for various life situations. It can provide immediate support to elderly parents or create future retirement income for adult children.
Financial Benefits for Gift Givers
Opting for this approach to charitable giving also provides distinct advantages for the donor. With this approach, you name another person as the recipient of a charitable gift annuity.
Tax benefits begin the moment you establish the annuity. As mentioned above, the initial gift qualifies for an immediate tax deduction. The deduction amount is based on the portion that will eventually go to the charity. The exact figure is determined by the annuity rate, beneficiary age, and IRS discount rates, notes Fidelity Charitable.
Estate planning advantages add another layer of benefit. 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.
Income security for your designated recipient is guaranteed. Also, the person receiving the annuity payments is guaranteed a fixed rate that doesn’t fluctuate with the stock market. A portion of the annuity income is often tax-free.[2] This stability makes charitable gift annuities particularly valuable during economic uncertainty. Other investment vehicles may experience volatility.
Impact on Communities in Africa and Asia
Upon the death of the donor, the remainder of the gift goes to GFA. This makes the investment impactful not just for the designated recipient. It also benefits people across the globe in Africa and Asia.
GFA’s work depends entirely on donor generosity. 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. Through programs providing clean water, education, medical care, and income-generating opportunities, GFA ministers to communities where needs are greatest.
With financial and prayer support, GFA missionaries can do all they can to reach the most people. They share about the God who cares for their every need. They tell about His love—so great that He sent His Son to die for them.[3]
A Gift That Benefits Everyone
Charitable donations of this nature can benefit many people: the donor, the recipient of annuity payments, GFA missionaries and the people where GFA ministers.
This multi-generational approach to giving creates lasting impact. Families that engage in collaborative philanthropy report stronger family bonds and shared purpose. This comes from research by the Greater Houston Community Foundation. By naming a family member as your annuity beneficiary, you provide them with financial security. You also demonstrate values of generosity and service that can inspire future generations.
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/.