Charitable Gift Annuity
A charitable gift annuity is a method of planned giving whereby a donor gives a charitable organization an asset (usually appreciated securities or real estate) in return for a fixed income stream for life. The income from the gift annuity will always remain the same, providing the donor with a secure income that is not subject to market fluctuations. A portion of the gift annuity income is tax-free because it is considered a return of principal. In addition, the donor receives a current income tax charitable deduction for a portion of the gift. By funding a gift annuity with a highly appreciated asset, such as stocks or real estate, a donor can also reduce significantly the amount of capital gains tax he/she would owe if he/she simply sold the asset.
The BRCC Educational Foundation received the property (pictured below) on August 14, 2000, through a charitable gift annuity arrangement with the donor, Mrs. Julia N. Grandle.