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CHARITABLE GIFT ANNUITIES§ 14.9 CHARITABLE CONTRIBUTION DEDUCTIONAs with the annuity paid out of a charitable remainder annuity trust, 40 the annuityresulting from the creation of a charitable gift annuity arrangement is a fixedamount paid at regular intervals. The amount paid depends on the age of thebeneficiary, determined at the time the contribution is made.As noted, the amount that generates the charitable deduction is basically theamount equal to the fair market value of the money and/or property transferred,reduced by the value of the income interest. The annuity is usually calculatedusing a rate of return set by the American Council on Gift Annuities. 4140 See § 12.2(a).41 The legality of these rates was the subject of litigation and legislation (see § 14.8). The current rates took effecton March 1, 1997; on the average, they embody an increase in payments to annuitants of about 1 percent.For further reading about charitable gift annuities, see Appendix L. 504