Donor Resources
Donor Resources
Donor Resources
Donor Resources
Charitable Trusts
Charitable Trusts
Charitable Trusts
Charitable Trusts
A life income gift is a charitable giving arrangement in which a donor makes a significant gift to a charity and, in return, receives an income stream for a specified period of time (often for the donor's life). After the period expires or upon the donor's death, the remainder of the gift goes to the charitable organization.
A life income gift is a charitable giving arrangement in which a donor makes a significant gift to a charity and, in return, receives an income stream for a specified period of time (often for the donor's life). After the period expires or upon the donor's death, the remainder of the gift goes to the charitable organization.
A life income gift is a charitable giving arrangement in which a donor makes a significant gift to a charity and, in return, receives an income stream for a specified period of time (often for the donor's life). After the period expires or upon the donor's death, the remainder of the gift goes to the charitable organization.
A life income gift is a charitable giving arrangement in which a donor makes a significant gift to a charity and, in return, receives an income stream for a specified period of time (often for the donor's life). After the period expires or upon the donor's death, the remainder of the gift goes to the charitable organization.
There are several types of life income gifts, including:
There are several types of life income gifts, including:
There are several types of life income gifts, including:
Charitable Remainder Trusts (CRT)
Charitable Remainder
Trusts (CRT)
Charitable Remainder
Trusts (CRT)
In a CRT, assets are placed in a trust, and the trust pays an annual income to the donor or other named beneficiaries for a period of time. Once the trust terminates, the remaining assets go to the charity. There are two main CRT types: Charitable Remainder Annuity Trust (CRAT), which pays a fixed annuity, and Charitable Remainder Unitrust (CRUT), which pays a variable amount based on the value of the trust's assets.
In a CRT, assets are placed in a trust, and the trust pays an annual income to the donor or other named beneficiaries for a period of time. Once the trust terminates, the remaining assets go to the charity. There are two main CRT types: Charitable Remainder Annuity Trust (CRAT), which pays a fixed annuity, and Charitable Remainder Unitrust (CRUT), which pays a variable amount based on the value of the trust's assets.
Charitable Gift Annuities (CGA)
Charitable Gift Annuities (CGA)
This is a contract between a donor and a charity. In exchange for a gift, the charity agrees to pay the donor (or another beneficiary) a fixed sum yearly for life. The donor's age typically determines the annuity rate at the time of the gift.
This is a contract between a donor and a charity. In exchange for a gift, the charity agrees to pay the donor (or another beneficiary) a fixed sum yearly for life. The donor's age typically determines the annuity rate at the time of the gift.
Pooled Income Funds
Pooled Income Funds
These are like mutual funds that pay dividends. A donor's gift is combined with other gifts in a common pool, and the donor receives a share of the income generated by the fund.
These are like mutual funds that pay dividends. A donor's gift is combined with other gifts in a common pool, and the donor receives a share of the income generated by the fund.
Life income gifts can provide several benefits:
Life income gifts can provide several benefits:
Life income gifts can provide several benefits:
Tax Benefits
Tax Benefits
Donors often receive an immediate income tax deduction for the charitable portion of their gift. Furthermore, assets like stocks transferred to these arrangements can potentially bypass capital gains taxes.
Donors often receive an immediate income tax deduction for the charitable portion of their gift. Furthermore, assets like stocks transferred to these arrangements can potentially bypass capital gains taxes.
Stable Income
Stable Income
Especially for retirees, the prospect of a stable income for life can be appealing.
Legacy: It allows donors to make a substantial gift to a charity that they care about, ensuring that the organization benefits in the long run.
Especially for retirees, the prospect of a stable income for life can be appealing.
Legacy: It allows donors to make a substantial gift to a charity that they care about, ensuring that the organization benefits in the long run.