Gift Planning: Gift Annuities

What is a Gift Annuity? When you contribute to a gift annuity, you receive regular, fixed payments for as long as you live, in addition to an income tax deduction. Usually, you receive tax-free income as well. The income you receive can be distributed quarterly, semi-annually or annually. For gifts of $10,000 or more, we also make monthly payments. Income usually ranges from 4.4% to 9.8%!

More than 170 years ago, we pioneered this creative giving plan, paving the way for the oldest continuously operated gift annuity program in the U.S. We delivered our very first payment in 1843—and we haven’t missed a payment since.

If you choose to create a gift annuity with American Bible Society, we promise in writing to pay a fixed amount to you or your beneficiaries for life in exchange for a charitable gift. Each gift annuity is backed by all the assets of American Bible Society, so your income is secure.

Annuities offer several valuable benefits, including:

  • The security of regular, fixed payments for life
  • In most cases, receiving substantial tax-free income
  • Partial income tax deduction
  • Reduced capital gains taxes
  • Reduced or eliminated estate taxes

Annuities may take one of two forms:

Immediate Charitable Gift Annuity: A charitable gift annuity involves a lifetime agreement between you and American Bible Society. In exchange for a charitable gift of $5,000 or more, we commit to paying you an immediate lifetime stream of regular income for as long as you live (for 1 or 2 people). After you no longer need the income, we use the remainder to continue sharing God’s Word.

Deferred Gift Annuity: Same as above, but with a deferred gift annuity, you can set up the gift annuity now, and decide to start receiving the income at a later date. When the deferred income starts, it is paid at a higher rate.