Quote:
Originally Posted by retiredguy123
Are you saying that, if you make a charitable donation of $100,000, they will pay you $4,300 (4.3%) per year for life, which is about 20 years for a 66 year old woman? If so, that is only $86,000 ($4,300 x 20 years). Not a good deal. Or, am I missing something? But, you will get a tax deduction in the first year, which will be a portion of the $100,000 donation.
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Well the number that I have at my fingertips is $51,000 savings in taxes on $600,000 gift annuities between my husband and myself equally portioned this high income year. So that is prominent in our thinking. Going directly to make this arrangement with each charitable organization means zero fees from our understanding.
We are aware of the following downsides: if any of these charitable organizations go out of business, we are out of luck. At the end of our lives, there is no portion going to our beneficiaries. Also, the contracts are irrevocable. And there is no allowance for inflation.
So again, are we missing something?