Key facts
- A 75-year-old widow utilized the Charitable Gift Annuity strategy.
- The strategy provides $4,200 per month in income.
- The income is tax-advantaged and lasts for life.
The Charitable Gift Annuity is a financial planning tool where an individual makes a donation to a charity in exchange for fixed payments for life. This strategy can offer tax benefits, including an immediate charitable income tax deduction and tax-advantaged income payments.