Charitable gift annuity donors are usually older, retired, and looking for an additional income stream in retirement – with the added bonus of getting to donate to charity.
Many large nonprofit organizations offer gift annuities, especially colleges and universities. Your first step will be confirming that the group you want to donate to offers charitable gift annuities.
Assuming they do, your next step is to make the sizable donation you have planned. The minimum amount you can give to qualify for a charitable gift annuity is usually $5,000 or $10,000. However, many charitable gifts are usually worth much more than that.
The charity then sets your gift aside in a reserve account and invests it or puts it in an account that accrues interest. You receive a scheduled, fixed monthly or quarterly payout, usually supported by your original donation, for the rest of your life. After you die, the charity then gets to keep the rest of the gift.