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Scam alert on some charitable gift annuities. (Market Perspective).
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National Underwriter Life & Health-Financial ServicesEdition
- Article date:
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December 2, 2002
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Copyright informationCOPYRIGHT 2002 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Charitable gift annuities are wonderful planning tools, but there's been some recent talk about them involving scams and commission problems. Here's what it's about, and here's how to avoid any of the fallout.
But first, let's start by reviewing how a charitable gift annuity works. A donor gives property to a charity, and the charity agrees to pay that donor annuity payments (generally for the donor's life). The present value of the stream of annuity payments is typically less than the value of the property given to charity, and the difference between the two is a charitable gift.
The concept is relatively simple. You give more to the charity than you get back, and ...
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