Gift Annuities Benefit Donors, Nonprofits

Charitable annuities can be appealing for investors looking to avoid market risks, ACGA's Kelly says. With markets that are "going up, down and all over the place, donors can use charitable gift annuities to transfer the market risk to the charity and assure a fixed dividend for life," she says.

The flip side of a fixed rate is its inability to keep up with rising interest rates or inflation.