A gift of cash or securities is transferred to Trees For Tomorrow in exchange for a contractual life income paid to the donor at least annually. The income is guaranteed by the issuing charity. A portion of the total gift is invested and used to provide income for life, and the remaining portion qualifies as a present-interest gift. Part of the annuity income may be received as tax free. Any capital gains tax due on the assets that were exchanged for the annuity are paid over the annuitant's life expectancy.

Advantages to the donor include:

• Income for life - fixed payments.
• Donor can select the starting date of the income.
• Possibility of one or two income beneficiaries.
• Guaranteed contractual agreement.