Are Charitable Gift Annuities a Good Idea?

There is not one answer to the question “Are charitable gift annuities a good idea” since each person’s financial situation is different. It is impossible to make a general recommendation; however, there are some definite benefits to investing money in a charitable gift annuity.

Generally, donors will qualify for an immediate tax deduction for the gift portion of the charitable gift annuity, and if the gift is funded with appreciated stock or mutual fund shares, annuitants may also avoid some capital gains tax. A charitable gift annuity provides a fixed income for life because it does not fluctuate with the stock market. A portion of the income is often tax-free as well.

A charitable gift annuity is simple to set up. Unlike a trust, it can be established without a lawyer, but consulting with an advisor is always a good idea. Using part of an estate to fund a charitable gift annuity removes that piece from the taxable estate, which could then help reduce or avoid estate taxes.[1]

Most importantly, the gift portion of a charitable gift annuity has a major impact on GFA World’s ministries in Africa and Asia. Receiving generous donations helps ensure GFA can continue to share the love and grace of Jesus with those who need it most. With programs to help in many areas― from disaster relief to needed medical attention, from ministering to widows and orphans to providing mosquito nets―any gift or donation makes a huge difference.[2]

Since GFA was founded over 40 years ago, we have relied on faithful giving to share the love of Christ with so many who’ve not heard the name of Christ even once.

Child sponsorships help us provide vital assistance to at risk children, like education assistance, nutritious food, healthcare and hygiene training for children in some of the world’s poorest areas.

National missionaries, vital workers who know the people and culture already, also have sponsors who provide funding for the resources and training to work and minister where no one else is.

Donations can provide income-generating gifts of farm animals or sewing machines that can lift families out of the cycle of poverty. Donations can also provide for drilling Jesus wells to provide clean water, and constructing proper sanitation facilities for those in need.


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