A charitable gift annuity can be illustrated as follows. You own $25,000 of appreciated stock that pays no dividend. If you sell it and reinvest in income producing investments you would pay a capital gain. Instead, you donate it to a major charity in exchange for a charitable gift annuity. There are no capital gains tax, in fact you'll receive a charitable contribution deduction for some portion of your gift. The charity will pay you a set amount periodically for the rest of your life (an annuity).
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