Here is an example of a Single Life Annuity (Rates and Dollar Amounts effective January 1, 2012):

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Mary Simpson, age 69, transfers $10,000 to the Columban Fathers for a Gift Annuity. At that age, there is a return rate of 5.0%, giving her $500 annually for life. Of that, $389 will be tax-free. In the year in which she makes the transfer, she may claim a Charitable Gift Deduction of $3,595 on her tax return.
Benefits of a Single-Life Gift Annuity for $10,000

Age	Return Rate	Annual Income	Tax-Free Portion	Taxable Portion	Charitable Deduction
90	9.0%	$900.00	$841.50	$58.50	$6,212.70
85	7.8%	$780.00	$698.88	$81.12	$5,528.80
80	6.8%	$680.00	$575.28	$104.72	$4,822.20
75	5.8%	$580.00	$475.02	$104.98	$4,302.00
70	5.1%	$510.00	$404.43	$105.57	$3,728.80

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Here is an example of a Joint or Two Life Annuity:

Mr. Harris, age 68, wants to take out a Gift Annuity to provide life income for himself and his wife, who is 66. Using principal of $10,000, they will receive an annual income of $440 until the death of the surviving spouse. Approximately $338 of that will be tax-free. In the year they take out the annuity, they may claim a Charitable Gift Deduction of $2,273.