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Step 1
Pick a charitable annuity that has a longstanding reputation. If you're 50 years old and you donate $50,000 to a charity, you don't want them to close their doors before you receive your first yearly payment. Longevity is the key here.
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Step 2
Discuss the number of annuitants you pay put on the charity before buying in. If you have a terminal illness but you want your elderly sister to receive payments, negotiate that ahead of time. Be aware that she may have to pay a gift tax if her annuity payments exceed a specified amount.
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Step 3
Realize that once you buy into a Charitable Annuity, you're stuck with it. They are irrevocable. This is a big reason for making sure you want to buy one before you plop down your cash.
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Step 4
Talk to your accountant about tax benefits. You may be entitled to a depreciation against the money donated and you'll bypass Capital Gain taxes if you sell property in order to purchase the charitable annuity.
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Step 5
Check with your state insurance authority before buying a charitable annuity. Before a charity can qualify to sell charitable annuities, they must apply for and receive a permit from this agency. The agency will look at their sh
