Commercial Annuities and Charitable Gift Annuities Compared
We are sometimes asked how charitable gift annuities compare to commercial annuities offered by insurance companies. One big difference is that charitable gift annuities result in gifts to our programs that average about 75% of the amount initially transferred by the donor(s). These gifts occur because our payout rates are somewhat lower than commercial issuers would pay to persons of similar ages. Additionally, gift annuity donors can contribute appreciated securities for a charitable annuity and escape part of the capital gains taxes.
Features; Gift Annuities; Commercial Annuities
Payout Rates; Lower; Higher
Charitable deduction?; Yes; No
Partly tax‑free payments?; Yes; Yes
Capital Gains Tax Savings?; Yes; No
Deferred Payments Possible?; Yes; Yes
Variable Payments Possible?; No; Yes
Survivor Beneficiary Permitted?; Yes; Yes
Remember that the primary reason a friend would create a charitable gift annuity is to further one’s charitable giving in support of Northwestern University, but an added benefit is income payments for life. Please contact the Office of Gift Planning at 800-826-6709 or firstname.lastname@example.org if you would like a personalized illustration of the benefits of a charitable gift annuity.
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