Question: For a donor 70½ or older, is a QCD the best way to fund a gift annuity?

Answer: In certain circumstances. Your donor may find, however, that it is more advantageous to use cash or appreciated securities because they:

• Will receive a charitable income tax deduction if they itemize.
• Avoid some capital gains, with the rest taxed over their life expectancy.
• Receive partially tax-free payments for their life expectancy.     
• Can include other income beneficiaries, like a spouse or parent.
• Have the option to begin receiving payments at a later date, such as retirement.
• Aren’t subject to the $50,000 gift limit.

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