A charitable gift annuity can be a good investment that gives the client a lifetime income stream. These investment strategies are regulated by the American Council on Gift Annuities (ACGA), which promote charitable causes and sets the annuity payout rate. A portion of the payments made towards gift annuities are tax free. To avoid making mistakes, it is important to work with a CPA or tax advisor. There are no annuity agents involved with this investment strategy, gift annuities are bought directly from the charities. Clients should consider looking into gift annuities when thinking about making financial investments.
See Stan Haithcock, Gift annuities are the gifts that keep on giving, Market Watch, June 9, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
