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Charitable Gift Annuity

The Covenant House charitable gift annuity enables you to transfer cash or marketable securities to Covenant House in exchange for an immediate income tax deduction (the year you make your gift) and guaranteed fixed payments to you for life. But most important, your Covenant House charitable gift annuity gives our kids a chance for a better life.

To further assist you, below is a detailed explanation of the benefits of a Covenant House charitable gift annuity. Prospective donors are also urged to seek the advice of a qualified tax advisor before entering into a Covenant House charitable gift annuity.

Guaranteed immediate income

The Covenant House charitable gift annuity guarantees quarterly payments for life to you or a person you designate, beginning immediately. The rate is generous and based on your age on the gift date. Nominal rates may be lower than those available from commercial insurance companies. 

Tax-free portion

A substantial portion of each annuity payment is tax-free over the life expectancy of the donor because it is considered a return of the gift principal. After the life expectancy of the donor, the entire annuity becomes taxable.

Avoiding capital gains tax

Gifts of appreciated securities provide more benefits. Both the annuity amount and the income tax deduction are based on the full value of the gift. No capital gains tax on the appreciation will be due at the time of the gift as long as the donor is an annuitant. For gifts of appreciated securities, the tax-free portion of the annuity payments is reduced.

Deducting a substantial portion of your contribution this year

If you itemize your deductions in the year you make the gift, you will receive an immediate income tax deduction that will usually exceed one-third of the contributed value. The tax deduction will be greater if you choose a lower annuity rate. IRS regulations limit charitable deductions to 50% of your adjusted gross income (AGI) for cash gifts (30% of AGI for stock gifts) in any year. Any unused deduction can be carried forward for five additional years.

No maximum contribution

The minimum gift for a Covenant House charitable gift annuity is an affordable $5,000, with no maximum on the amount you can contribute.

Type of gift

A Covenant House charitable gift annuity can be established with either cash or securities.

Remainder for the use of Covenant House

After the annuity payments have ended, your gift will be used to help the kids at Covenant House. Prospective donors are urged to seek the advice of a qualified tax advisor before entering into a Covenant House charitable gift annuity.


© 2017 Covenant House of Georgia All Rights Reserved.
Covenant House Georgia is a 501(c)(3) organization - Tax ID#: 13-3523561 - All donations are tax-deductible