There are several different
types of life income
arrangements available for
you to support CBC.
Life income gifts, such as
charitable gift
annuities,
deferred gift annuities,
and
charitable
remainder trusts,
provides an income stream
for life or a term of years.
Depending on the gift option
you choose, your income can
be fixed or variable over
your lifetime. And, if you
make your gift with
appreciated property, you
can reduce or eliminate your
capital gains taxes.
In addition, you also
receive a charitable income
tax deduction that you can
use in the year that you
make your gift. And when the
plan ends, the life income
gift will benefit the
program at CBC that you
specifically designated.
Summary of benefits:
-
Satisfaction in
supporting a program
area at CBC that is
important to you.
-
Lifetime income payable
to you and/or another
beneficiary.
-
An immediate charitable
income tax deduction.
-
Elimination or reduction
of capital gains taxes
on gifts of long-term
appreciated property.
-
Reduction in federal
estate taxes.
-
Membership in the CBC
Clarks Cove Society, our
recognition society for
individuals who have
made a planned gift.
CBC’s most popular life
income gifts are:
A charitable gift
annuity (CGA) is a
contract between you
and CBC. The
contract states that
in exchange for your
gift to CBC, CBC
agrees to pay you
and/or another
beneficiary a fixed
dollar amount
annually for life.
Part of the income
paid to you and your
beneficiary(ies) may
be tax-free, or
taxed at the more
favorable capital
gains tax rate,
depending on the
asset you use to
fund the annuity.
The income is based
on the age of the
income
beneficiary(ies) at
the time of the
gift. At the death
of the last income
beneficiary, CBC
will then use the
principal in
accordance with the
terms of your gift.
Annuities can be
established with
minimum gifts of
$10,000 and can be
structured in
several different
ways to suit your
particular
situation.
For some people, a
gift annuity is a
great option;
however, they prefer
not to receive the
income immediately.
For these donors,
the deferred gift
annuity might be an
option.
A deferred gift
annuity allows a
donor to make their
gift now and
predetermine a
future date at which
they will begin to
receive the income
(e.g. retirement
age, significant
birthday, etc.). By
deferring your
income for a year or
more, you will be
offered a higher
gift annuity rate
and a higher tax
deduction.
Charitable Remainder
Trusts are
individually managed
accounts from which
payments are made to
the named
beneficiary(ies) for
his or her lifetime
or a term of years.
On the death of the
last named
beneficiary or end
of the trust term,
the principal is
transferred to CBC
to be used in
accordance with your
wishes.
Charitable Remainder
Trusts at CBC can be
established with
gifts of $100,000 or
greater. You
determine the rate
of annual payments
at the outset,
subject to certain
guidelines. The
trusts payout to the
named
beneficiary(ies) for
their lifetime(s).
CRTs can be
structured in a
variety of ways to
suit your particular
situation.
Note: The information on
this Web site is not
intended to serve as legal
or financial advice. When
planning a specific
charitable gift, the
services of a legal or
financial advisor should be
obtained.
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