HSN Blog

Charitable Gift Annuity

There’s a way for you to support Humane Society Naples and feel confident that you have dependable income in your retirement years. You can do this with a charitable gift annuity (CGA).

With a charitable gift annuity you agree to make a gift to benefit HSN and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life. The balance is used to support our life-saving work.

This type of donation can provide you with regular payments for life and allow HSN to further our mission. You can also qualify for a variety of tax benefits depending on how you fund your gift.

If you fund your gift annuity with cash or appreciated property, you qualify for a federal income tax deduction if you itemize. In addition, you can minimize capital gains taxes when you fund your gift with appreciated property.

And in 2024 you can fund your gift using your IRA assets. If you are 70½ and older, you can make a one-time election of up to $53,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.

Big news you should know! Charitable gift annuity rates have gone up yet again, making the payouts you’d receive the highest in 16 years. Get the details so you can lock in these great rates and get fixed, reliable income for life.

“Given the three rate increases in the last 18 months, 2024 is shaping up to be another great year for gift annuities.”

So writes Lynn Gaumer, J.D., Senior Gift Planning Consultant for the Stelter organization, one of the country’s leading planned giving advisory groups.

The American Council on Gift Annuities has released a new schedule of suggested maximum gift annuity rates for gifts established on or after January 1, 2024. On average, rates will increase approximately 0.4% depending on the age of the annuitant. As an illustration, under the current rate schedule, a donor, aged 80, transfers $25,000 in exchange for a charitable gift annuity. She will receive annual payments of $1,900, a rate of 7.6%. Instead, if she were to wait to make her gift on or after the new rate schedule is in place on Jan. 1, the same gift amount will provide $2,025 in annual payments, reflecting a 8.1% rate.

2024 tables for CGA returns:

CGA Returns Chart


Kim Hanson
Senior Philanthropy Officer
Humane Society Naples
(239) 438-4624

Kim Hanson is HSN’s Senior Philanthropy Officer. With more than 40 years in the nonprofit development field, Kim posts a monthly blog on our HSN website about ways of saving the precious lives entrusted to us through a variety of charitable giving vehicles.

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