Charitable life income gifts can enable you to:
- Increase your
income
- Receive an immediate
charitable income tax deduction
- Avoid capital
gains tax
In a life income plan,
the donor makes an up-front gift to the Museum, but retains the right
to receive income payments for life (or, in certain cases, a period of
up to 20 years). At the end of that time, the remaining principal goes
to support the Museum's work. The Museum offers three types of life income
plans.
A Charitable
Gift Annuity is a contract between the donor and the Museum, which
states that in return for a gift to the Museum, the donor receives income
payments for life. With rates based on the donor's age, these payments
are fixed and never vary, and they are determined at the time the gift
is made. Once the gift is made, the Museum directly assumes the obligation
to make the payments. Gift annuities can be immediate, where the payments
begin at the time the gift is made, or deferred, where the payments
begin at a future date determined by the donor.
The Pooled Income
Fund is a charitable trust established by the Museum to accept gifts
from many donors. All the gifts are invested together, and income (dividends
and interest) earned by the Fund is distributed quarterly to donors
on a pro-rata basis. Because part of the portfolio for the Fund is invested
for growth, this plan offers the potential for growth in both the income
stream and the future gift to the Museum.
A Charitable
Remainder Trust is a trust established by the donor to hold and
invest assets. The income payments are made in one of two ways; either
as a fixed percentage of the total trust principal as valued each year,
or as a fixed dollar amount of the trust value on the date of the gift.
The trust can have a duration of either the lives of the donor and/or
loved ones, or a specific term of up to 20 years. This plan is most
cost effective if a larger, "six figure" gift is being considered, and
it can be structured to meet the specific needs of the donor and the
income beneficiaries.
|
