Charitable Gift Annuity

The gift that rewards you with lifetime income and tax savings

Imagine making a meaningful and patriotic gift that rewards you or your loved ones with dependable fixed income for life, a charitable income tax deduction, a potential reduction in estate taxes, and even capital gains tax savings. A Charitable Gift Annuity can deliver all of this, and more.

Charitable gift annuities are designed for people of retirement age or older. The older you are, the higher your annuity rate. The income it pays is based on your age and remains fixed for life.

Typically, a portion of your income will be tax-free for a number of years, which is an added tax benefit. If you choose to name a second beneficiary, the annuity will continue to pay the same amount to the surviving annuitant for the remainder of their life. When there are no more income beneficiaries, your remaining principal becomes a special gift to The Heritage Foundation.

The minimum gift required to establish a charitable gift annuity with Heritage is $5,000.

This type of gift is right for you if:

  • You or your intended annuitant are of retirement age or older.
  • You prefer fixed income over fluctuating income.
  • Your gift would be made with cash or marketable securities rather than real estate or tangible property.

Major benefits:

  • Fixed income for life, some of which may be tax-free for a term of years.
  • Charitable income tax deduction.
  • Capital gains tax savings.
  • Potential reduction in estate taxes.

Sample rates:

Age Sample Rates
70 5.1%
75 5.8%
80 6.8%
85 7.8%
90 9.0%

© 2023 The Heritage Foundation | Conservative policy research since 1973

The Heritage Foundation does not provide legal or tax advice; all material is presented solely as educational information. Examples of tax benefits are based on assumptions that might not apply to your individual circumstances. We recommend that you seek the advice of your attorney, tax advisor, and financial planner in connection with all gift and estate planning matters.