Charitable Gift Annuities

Fixed, Guaranteed Income for Life

Charitable Gift Annuities can be a wonderful and easy way to make a long lasting gift to People For the American Way Foundation (PFAWF) while obtaining a fixed, guaranteed income. They are especially attractive for retirees, offering income that can never be outlived!

For many, it is a great way to get higher payments than a bank certificate of deposit will provide, particularly in the current low-interest rate environment. The exact amount depends on your age, number of people (1 or 2), and gift date. (See current rate table at right.)

How it works

You make a gift of $5,000 or more in cash, securities or mutual funds to PFAWF. PFAWF takes the gift and reinvests the asset in conservative, diversified investments and guarantees to provide you a fixed income for life that will never vary. Every quarter, just like clockwork, you will receive a payment.

You will also get an income tax deduction for part of your gift. In all cases, much of your income will either be tax free or taxed at favorable tax rates.

PFAWF will set aside your gift in a special account and, when you no longer need the income, we will use your gift to further the important goals of liberty and democracy that PFAWF stands for.

Note: PFAWF CGAs may not be available in all states initially.

Two examples of Charitable Gift Annuities:

1. A 77-year-old woman makes a $10,000 gift of cash for a PFAWF Charitable Gift Annuity. She will get a guaranteed income of 8.2% or $820 per year for as long as she lives. She will also get an income tax deduction of approximately $4,300. Better yet, most of the income will be tax free for the first 11 years.
2. A couple ages 74 and 79 make a $20,000 gift of Microsoft stock that they paid $10,000 for some years ago. They make the gift and receive a fixed income of 7.2% of the gift or $1,440 per year for as long as either of them live. Approximately $350 will be tax free and $500 will be taxed at favorable capital gains rates for 15 years. They will also get a $6,800 federal income tax deduction.

If the donor lives to be 97, 107 or even 117, the checks will keep on coming — they are fully guaranteed by PFAWF for life.