Charitable Gift Annuity
Planning Options used to Create Additional Income
A charitable gift annuity is a combination of a gift to Idaho Public Television and an annuity. It is an irrevocable transfer by you of cash (or other property) to Idaho Public Television in exchange for Idaho Public Television's commitment to pay a fixed amount for the lifetime of one or two beneficiaries.
The income payments distributed to the annuitant (you) may be composed of ordinary (taxable) income, tax-free income (return of principal), and long-term capital gain. Generally, about 40-55% of the income payment will be tax-free, depending on the age of the income beneficiaries and the assets used to establish the annuity agreement. If you live beyond your recognized life expectancy, then all the income from that point forward becomes taxable.
A gift annuity may be funded with a gift of cash or securities. Annuities may be issued for smaller amounts than other deferred gift income plans making them attractive to some individuals.
Charitable gift annuity agreements can be arranged by Idaho Public Television and are generally not subject to modification keeping the cost of implementation and preparation low.
When the annuity is funded with appreciated assets, a portion of the gain is avoided by the gift and the balance is spread over your life expectancy. A gift annuity reduces, but does not avoid, the capital gain tax obligations.
Idaho Public Television is not a tax advisor. To maximize the benefit of your gift, please contact the services of a professional tax or financial advisor.