Givers give no matter what the economic climate, says Doug Lawson, a nationally known expert on fund raising and charitable giving.

But there are ways givers can give more intelligently, especially in a sluggish economy, he says.

Lawson is the founding chairman of Douglas M. Lawson Associates Inc., a fund-raising and management-consulting firm that has assisted clients in raising more than $1 billion.

He is the keynote speaker at Saturday's one-day conference of the Association of Fundraising Professionals in Cincinnati, where he will discuss the benefits of charitable gift annuities.

Charitable gift annuities are win-win contracts between the donors and the organizations. The givers get to give - but they get a little something as well.

Bulls vs. bears

In booming bull stock markets, giving highly appreciated stock is a preferred donation method. The donor avoids costly capital-gains taxes, while being able to deduct the full value of the shares.

But stock donations don't work as well after three years of a bearish market. Neither does trying to earn income from investments bearing the lowest interest rates in 40 years.

Charitable gift annuities solve both those problems, Lawson says.

These vehicles, sold by the individual charities, guarantee the donors a fixed income based on the donors' age for the rest of their lives.

A 60-year-old, for example, may earn a 6 percent return after buying the annuity. The older the donor, the higher the guaranteed return.

And it's a far cry better than the 1 percent many money market accounts are paying.

"It's a wonderful thing when the market is down, and people have cash that is getting low returns," Lawson said. "To get 8 or 9 percent for the rest of your life is a no-brainer."

Guaranteed payouts

Some of the largest philanthropies in the country are big sellers of charitable gift annuities: the Salvation Army, the National Wildlife Foundation, the Mayo Clinic, and several major university foundations.

Proceeds from selling the annuities are used to guarantee the payouts.

The payouts are not considered "income," since they are a partial tax-free return of the gift.

The charity needs to keep enough assets in the sinking fund to keep making its guaranteed payments - but once the donor dies, whatever is left is for the charity to use.

Charitable gift annuities are important vehicles for nonprofits to use, Lawson says, because they help people give generously and efficiently - also best for the charity.

Corporations may cut back giving as profits shrink; foundations may lower their outlays as their assets shrink.

"Individuals are really the hope of nonprofits because the individuals give from the heart rather than the head," Lawson says.

"When times are bad, givers give even though their economic situation is down because they know people are hurting."

Contact Amy Higgins at 768-8373; ahiggins@enquirer.com; or 312 Elm St., Cincinnati 45202. She regrets that she cannot reply to all individual questions.