Who can create charitable gift annuities?
Donors (usually age 65 and older, with optimum age 75 – 90) who want the security of guaranteed payments that gift annuities offer, and who wish to benefit from after-tax rates of return that are significantly better than GICs and Canada Savings Bonds. Often, the donor has a medium-level income, and would like to receive higher dependable income, free of worry. Some donors may use an annuity in place of a bequest to simplify the estate process and reduce probate and other estate settlement fees in the future. Some may contribute by way of a gift annuity and a bequest. Still others start with a modest contribution for a gift annuity and are so pleased with the results that they make further contributions for additional annuities. How are annuities created? The annuity is established by way of a legal agreement between the donor and the organization. The agreement may include provisions dealing with the size of the lump-sum payment, annuity payment frequency and timing, and uses and purp
