For some people, dedicating money to charity is a great source of pleasure and pride. Gift annuities are the best techniques to put donor’s assets towards a commendable cause and at same time let the donors to get monthly income for rest of their lives. Gift annuities, also called charitable gift annuities, are investment vehicles that provide stable life time income to annuity holder.

A gift annuity can be defined as "A contract between the donor and the charity wherein the donor transfers property to the charity in exchange for the charity’s promise to pay the donor a fixed annual income for life. Donor’s right to income may be deferred for a period of years."

The most attractive feature of gift annuities is that they permit you to provide money while you are still alive. Thus you can see how your funds are committed towards work. Investing funds in gift annuities is best option if you are over age 65; you require income while you are alive; you have to pay tax on interest you earn from investments etc.

In these days there are various charities and foundations that offer gift annuities. The stipulations of some of the foundations allow you to delegate your gift to a particular program within the charity. This way you can put your assets to a certain charity program. For purchasing gift annuities you have to open a gift annuity account with the charity foundation. There may be a minimum amount required to create an account.

Then on the basis of actuarial tables, the amount you will receive monthly from gift annuity fund will be calculated. Afterward the funds in gift annuities are flipped over to the charity on the death of annuity holder. Some foundations also accept marketable securities to create a gift annuity fund. Gift annuities are best ways for donors to give funds to their much preferred charity.

For more info on gift annuities, click here or call an Annuity Specialist at AnnuityForLife.com, 1-888-261-6237