Studies show that 16.5% of the population already have or would consider arranging a charitable gift annuity, yet only 3.6 percent have actually completed this type of gift. This situation occurs in part because nonprofit organizations lack the resources to efficiently source and deliver annuity gift products.

A gift annuity is the perfect vehicle for donors to help their favorite charity while caring for their own financial needs. Gift annuities allow your charity to reap an immediate source of new funds, while the donor receives a charitable tax receipt and a guaranteed flow of fixed lifetime payments at a favorable tax rate. Gift annuities allow both sides to benefit, making them an ideal product for any charity.

The most common types of planned gifts closed by charities in the past four years were bequests and charitable gift annuities, which suggests a back-to-basics movement, according a report cited by Giving USA 2005. The report was based on a survey of 29 leading national planned giving professionals conducted by Cynthia Krause, a planned gift consultant, and Betsy Mangone of the Denver Foundation. Those organizations that get back to basics to cultivate and solicit charitable gift annuities will reap rewards in the coming years.

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