The charitable gift annuity allows you to secure a guaranteed income for life. You establish an account by making an irrevocable gift of cash or securities. The older you are, the higher your annuity rate will be set. The rate remains constant once the gift is made.

One real advantage of a gift annuity is that a portion of the income paid out is considered 'return of principal,' which is tax-free income. These arrangements are set up with the execution of a simple contract. They can be done with small amounts of money, or very large sums.

Gift annuities are ideal for senior adults because they provide life income for both the donor and his/her spouse. Often the rate of return for this type of fund is better than a C.D. or a bond. After the donor's life, the remainder goes to the church and/or charity of choice.