38.2-106.1 - Charitable gift annuities. - Virginia Statutes

§ 38.2-106.1. Charitable gift annuities.

For purposes of this title:

"Charitable gift annuity" means an agreement by a charitable organizationto make periodic payments in fixed dollar amounts payable over one or twolives, under which the actuarial value of the annuity, as determined forfederal tax purposes, is less than the value of the cash or other propertytransferred by the donor in return therefor and the difference in valueconstitutes a charitable contribution for federal tax purposes.

"Charitable organization" means an entity described in:

1. § 501 (c) (3) of the Internal Revenue Code of 1986 (26 U.S.C. § 501 (c)(3)); or

2. § 170 (c) of the Internal Revenue Code of 1986 (26 U.S.C. § 170 (c)).

"Qualified charitable gift annuity" means a charitable gift annuity thatconforms to the requirements of § 501 (m) (5) of the Internal Revenue Code of1986 (26 U.S.C. § 501 (m) (5)) and § 514 (c) (5) of the Internal Revenue Codeof 1986 (26 U.S.C. § 514 (c) (5)) and that is issued by a charitableorganization that on the date of the annuity agreement:

1. Has a minimum of $100,000 in unrestricted cash, cash equivalents, orpublicly traded securities, exclusive of the assets contributed by the donorin return for the annuity agreement; and

2. Has been in continuous operation as a charitable organization for at leastthree years or is a successor or affiliate of a charitable organization thathas been in continuous operation as such for at least three years.

(1996, c. 425.)