A type of gift transaction where an individual transfers assets to a charity in exchange for a tax benefit and a lifetime annuity. As with any other lifetime annuity, when the beneficiary dies, the annuity payments are stopped, and the charity retains the remaining funds. In a typical charitable gift annuity, the annuity payouts are not limited to the contributed assets, however the actuarial calculations establishing payout amounts usually provide that a large residual amount should remain for the charity after the beneficiary's death.

Charitable gift annuities are popular fundraising vehicles. The annuities simultaneously provide a charitable donation, an income tax deduction and a guaranteed lifetime income stream. The charitable donation tax deduction is limited to the amount contributed to the annuity in excess of its present value, as calculated using IRS parameters.