Our hope is to serve you and your family with helpful information about planned giving gifts. We have an increasing number of friends and supporters who now are benefiting from life income gifts, gift annuities and other plans. Thank you for taking the time to explore the benefits of gift planning. If you have further questions, please feel free to contact Kristen Hermes (firstname.lastname@example.org) with any questions. Or ask to receive a Community Nurse planned giving folder in the form at the bottom of the page.
Ways to Give
Gifts can take multiple forms and can help you address your personal goals and dreams. Do you want to make a significant gift during your lifetime, or would a gift as part of your estate work better? Do you have a particular asset that you are thinking of donating? Do you want to increase your retirement income, or is your primary goal estate preservation? Are you carrying surplus life insurance or a large balance in your retirement plan? Here are some places to start as you consider ways to support you, your loved ones and Community Nurse all at the same time.
Benefits of Charitable Giving
The benefits of charitable giving are many, whether your gift comes through a bequest or during life giving opportunities. Almost every charitable gift can be considered an investment. Potential benefits to charitable estate planning include:
• Helping others in your community
• Estate Tax Savings
• Income Tax Savings
• Capital Gains Savings
• Fixed Income for Life
Wills, Stocks, Revocable Living Trust, Life Income Gifts, Charitable Gift Annuity, Charitable Remainder Trust, Life Estate, Real Estate, and Retirement Account, as well as some other gift types that are list below.
Annuity Trust – Receive high fixed payments with tax-free sale plus charitable tax deduction.
A charitable remainder unitrust and remainder annuity trust share many common advantages with two important distinctions. A charitable remainder unitrust pays the beneficiary a fixed percentage of the principal of the trust as it is revalued annually. This type of trust provides the donor with the flexibility to make additional gifts to the trust. In contrast, a charitable remainder annuity trust pays the beneficiary a fixed dollar amount, which is determined when the trust is established. Additional gifts to this type of trust are not permitted. Depending on your needs, you may find one trust arrangement more attractive than the other.
Deferred Gift Annuity – Benefit from fixed payouts beginning at a date more than one year from gift. Enjoy Immediate Tax Deductions and High Rates of Return Once You’re 65.
If you are 60 or older, a Deferred Gift Annuity (DGA) can provide you with income and/or capital gains tax advantages and high, fixed income when you reach 65. The same investment will benefit the charities in which you most believe.
The Deferred Gift Annuity (DGA) If you are younger than 65 this annuity can be used as a retirement planning vehicle to supplement existing retirement assets. It is most beneficial to donors who have already made the maximum contributions to their existing retirement plans.
You will be paid a fixed amount of income on a regular basis, beginning at age 65. Part of the gift qualifies for an immediate income tax deduction. That will reduce your current taxes. And the full value of the gift is removed from your estate. The younger you are, the larger the tax-deductible portion of the gift. What’s more, part of the annuity payment may be received as tax-free income.
Many donors create Deferred Gift Annuities on an annual basis to build retirement assets. The donor may name a joint and successor beneficiary who will receive the annuity at the end of the donor’s lifetime, beginning on the date of the donor’s 65th birthday or thereafter.
Sale and Unitrust – Receive cash plus increased income from trust! Charitable tax deduction reduces tax on gain.
Are your appreciated assets (such as stock, bonds or real estate) producing little or no income?
If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution.
How a Sale and Unitrust Works.
- You give a portion of your asset.
- The asset is sold, you receive cash and the rest goes to fund your charitable trust.
- The trust will provide you with income for the rest of your life.
- You receive a charitable deduction this year to offset your tax on the sale.
Benefits of a Sale and Unitrust
- You get the cash you need to purchase another residence, travel or meet your daily needs.
- The unitrust provides you with income for the rest of your life and future retirement.
- The unitrust deduction gives you valuable tax savings that may reduce your tax bill this year.
- When you pass away, the remaining value in the unitrust will help us further our work.
Charitable Remainder Unitrust (CRUT)
The most popular and flexible type of life income plan is a charitable remainder unitrust (CRUT). Cash, securities, real property, or other assets are transferred into the trust. The trustee manages the trust assets and pays you or others you choose a variable income for life or for a term of years. When the trust terminates, the remaining assets in the trust are transferred to the Church or one of its institutions.
The typical donor:
- Needs income for life or a specified term of years.
- Desires more income as the trust value increases.
- Tolerates some investment risk to provide for growth.
- Wants to make additional gifts to the trust.
- Is between the ages of 55 and 80.
Gift features and benefits:
- Income for life (variable payments)
- Charitable income tax deduction
- Possibility of multiple beneficiaries
- Assets transferred to the trust can be reinvested
- Ability to choose the trustee (may be the donor)
- Flexible investment possibilities for the beneficiary