Charitable Gift Annuities

A charitable gift annuity is a simple agreement between you (the donor) and PETA. In exchange for your gift to PETA of $10,000 or more, PETA will pay you or another person or persons (no more than two for any one annuity) fixed payments each year for life. These fixed annual payments, called "annuity payments," are based on the age of the payment recipient (called "the annuitant") at the time of the gift.

There are many benefits to establishing a gift annuity:

• First and foremost, you are making a wonderful gift to animals. After the annuity has ended, we will put your gift to good use strengthening our programs.
• You or your designated annuitants will receive a fixed income stream for life.
• You may receive a charitable tax deduction in the year that you make the gift and can carry over any unused portion of the deduction for an additional five years.
• A portion of the annual annuity payments may be tax-free.
• If your gift is of appreciated securities, you will save on capital gains taxes.

The annuity payments are backed by all of PETA's assets as well as by a gift-annuity reserve that is sufficient to meet all of PETA's future annuity obligations and that complies with the laws of those states in which PETA is registered.

The minimum age for an immediate annuity with PETA is 60, while the minimum age for a deferred annuity is 50. The payout rates (called "annuity rates") that PETA offers are the rates recommended by the American Council on Gift Annuities.  

Single Life—Immediate Annuity

As shown in the table above, for immediate gift annuities, with which the annuitant starts receiving payments immediately after the gift is made, the older the annuitant is, the higher the annuity rate. But even at a younger age, annuities can be a good idea. Through a deferred annuity, the longer you defer the receipt of payments, the higher your annuity rate and resulting annuity payments will be. This can be an attractive option for people aged 50 to 60 who can benefit from an immediate tax deduction and want to ensure a reliable and regular source of income for their retirement years.

Gift annuities are a wonderful, hassle-free way to support PETA's work now while securing fixed payments for yourself or a loved one for life.

Examples

(Based on gifts made December 2010 and a 2.0 percent IRS discount rate. Actual arrangements may vary. This is not legal advice.)

Immediate Annuity
Donor Age: 70

Immediate Annuity
Donor Age: 80

Deferred Annuity
Donor Age: 60
(payments starting at age 65)

To request further information from PETA, please click here.

To see how a charitable gift annuity can benefit you and animals, please try our gift calculator.

Disclaimer

The above is intended as an introductory outline only and is not intended to be and does not constitute financial, tax, or legal advice. We encourage you to consult with competent legal counsel and your financial advisor prior to establishing a charitable gift annuity. The California Insurance Guaranty Association does not back up payments of annuities. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by or under the jurisdiction of the South Dakota Division of Insurance.