January 15, 2009

Group Urges Change in Gift-Annuity Payouts to Donors

By Holly Hall

Responding to changes caused by the economy, a key nonprofit umbrella group has recommended that charities lower the amount of money that donors receive in exchange for creating charitable gift annuities.

To take out an annuity, donors turn over cash, stock, or other assets to a charity; the charity then invests the assets and makes regular, guaranteed payments to the donor or another person named by the donor until that person's death. After the donor or survivor, if any, dies, the