Did you know there is a way to support your favorite charitable cause and receive cash back? It’s called a charitable gift annuity and many, but not all, charities offer this form of giving. In Hawai‘i, there are some legal requirements that must be met by a charity before it can offer this form of charitable giving.
When you make a gift of cash or an appreciated asset in exchange for a charitable gift annuity, the charity makes a promise to pay you for the rest of your life. Your payment rate is fixed based on your age and never changes.
Choosing to participate in a charitable annuity program allows you to make a meaningful charitable gift, and receive regular, fixed payments no matter how long you live. The payments may provide for dependable payments for your spouse or another person if you wish. Optionally, you may receive higher payments for a deferred payment gift annuity. There may also be tax benefits such as an income tax deduction in the year of your gift, and payments that are partially free of federal income tax for a period of time.
People who are considering a substantial charitable gift but also feel uncertain about the future like the idea of a charitable annuity with continuous payments.
If you plan to give a portion of your assets to charity, and want more information on ways charitable gift annuities might work for you and your family, visit National Kidney Foundation of Hawaii online and just click on “Donor Stories.”