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Charitable Gift Annuity

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A gift annuity is a contractual agreement in which, in exchange for a minimum gift of $10,000, the ASPCA will make payments to you, another person, or two people for life. Use our calculator to see the benefits of a Charitable Gift Annuity.

Individuals aged 60 or older are eligible for immediate payment annuities. Payments can also be deferred to a future date, making gift annuities an excellent retirement vehicle. The gift can be in cash or marketable securities.

The minimum age for those entering into a Deferred Payment Charitable Gift Annuity contract is 50, and the minimum age for payments to begin is 60. People age 60 or older can defer payments for at least one year after the annuity is established.

Establishing a gift annuity accomplishes two things: a contract is made for you, the donor (and another individual if you choose) to receive a fixed payment for life, and a gift is made to the ASPCA. Since a portion of the amount given for a gift annuity will be used for charitable purposes, the donor is entitled to a federal (and perhaps state) income tax deduction the year the gift is made.

The contributed irrevocable gift becomes an asset of the ASPCA and the payments are a general obligation of the organization. The annuity is backed by the full assets of the ASPCA, and the funds are separately invested according to conservative and disciplined financial standards.

For a period of years, a portion of each payment received is tax-free. This further increases the after-tax dollars available to the donor for spending or investing. An annuity funded with appreciated securities has even more advantages: The gain allocated to the gift portion is not subject to the capital gains tax, and the portion of the gain to be recognized can be spread over the expected term of the contract.

For more information, please contact the Gift Planning Office at (212) 876-7700, ext. 4505, or gift.planning@aspca.org.

The material presented in this web site is intended as general educational information on the topics discussed herein and should not be interpreted as legal, financial or tax advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation.