Because of the American Taxpayer Relief Act, donors face higher taxes. This year, major charitable donors will be seeking financial advice to reduce their taxable income. Single taxpayers might lose part of their itemized deductions. Single taxpayers are not the only ones facing tax increases married couples should expect increases as well. Donors over age 75 are trying to gain tax-free income. A funded gift annuity might be the best tool to reach that goal. The gift annuity is the best combination of tax-free income and donor deductions. Using a gift annuity should be effective with the expected interest rates.
See What Do Major Donors Want?, Legacy UCLA, May 21, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
