Charitable Gift Annuity

Definition

• A planned giving vehicle where a donor agrees to transfer property or a sum of cash to a registered charity as a gift in exchange for a tax deduction and a lifetime stream of income from the charity in the form of an annuity. When the donor dies, the charity keeps the remaining funds. Also known as a "charitable remainder annuity trust."

Relevant Locations
Canada

Notes
A form of planned giving.

Synonyms
charitable remainder annuity trust, income stream

Acronyms
CGA

Related Terms and Acronyms

• Gift From a Family Member — Definition,
  • A gift of cash, to a mortgage applicant from a relative by blood or marriage, which the applicant is not required to repay. In some instances it is necessary to provide a written statement to that repayment is not required.
• Marital Deduction — Definition,
  • For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
• Private Annuity — Definition,
  • An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
• Tax Deferred Annuity (TDA) — Acronym, Important,
  • A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
  ➥ More commonly known as a Tax Sheltered Annuity (TSA).