A gift annuity is a planned charitable gift that provides donors with income for life. This type of gift can be a super benefit to seniors who want to make a charitable impact while also securing their retirement income and paying less tax.
The mechanics of a gift annuity are fairly straightforward, although donors should couch a decision to make a planned gift within the greater framework of their financial plan.
A gift annuity donor needs to find a charity who offers gift annuities. This is harder than you might expect, since most Canadian charities do not offer gift annuities. So consider a donor advised fund such as Link Charity. Link Charity can facilitate a gift annuity that benefits any registered Canadian charity, even private foundations.
Once the gift annuity details such as the size and terms have been arranged, the donor writes a cheque and receives a charitable receipt. The donor then receives a monthly guaranteed income for life. The monthly income can be received by direct deposit to the donor’s bank account.
If you are interested in learning more about gift annuities, please contact James Dunne.