A gift to St. Luke's that returns payments to you? Yes . . . the IRS allows and encourages these creative plans that can stretch your giving ability.
Here's how they work:
Your gift goes into an account that pays income to you and/or other beneficiaries for life. These types of gifts can provide significant tax savings. When there are no remaining beneficiaries, the balance of a portion of the balance in the gift account is paid over to St. Luke's for the purposes that you specified when you set up your gift. Your own advisors and/or the staff of the Episcopal Church Foundation can assist you in exploring these options.
Benefits
What Life Income Gift Best Fits Your Situation?
You want secure, stable income and a higher rate of return than CD's or Money Market Accounts
Consider a Charitable Gift Annuity
With a Charitable Gift Annuity established at the Episcopal Church Foundation, you make a gift of cash or marketable securities (minimum $5,000) in return for guaranteed fixed lifetime income based on your age or the ages of two people. Your income is not affected by market fluctuations and may be started at the time of your gift or deferred (for higher payments later). You receive an income tax and gift tax charitable deduction for your gift in the year that you establish the annuity. Some portion of the annuity gets taxed as ordinary income, and if the gift was funded with appreciated property, some proportion will be subject to capital gains tax which can generally be prorated over your life expectancy. A portion of the income received may be free of federal income tax. At your death or that of you and the second income beneficiary, the majority of the gift portion of the annuity may be directed towards St. Luke's.
For more information, please click Charitable Gift Annuity
You want the flexibility to invest and manage your gift plan, and also the security of stable income
Consider a Charitable Remainder Annuity Trust
A Charitable Remainder Trust enables you to make a significant gift (generally used with a gift of $100,000 or more) and to retain the right to receive a set amount of income during your lifetime and/or the lifetime of your designated beneficiaries. The amount of payments received during the pay-out period depends on how you structure the trust. Your gift to a Charitable Remainder Trust provides an immediate income tax and gift tax charitable deduction. Income payment typically will be received and taxed to the beneficiary in part as ordinary income and in part as capital gain. You may explore using the Episcopal Church Foundation as trustee of a Charitable Remainder Trust, use other charitable organizations as trustee or you may be your own trustee.
You want the flexibility over the investents and benefits in your gift plan
Consider a Charitable Remainder Unitrust
A Charitable Remainder Unitrust enables you to make a significant gift (generally used with a gift of $100,000 or more) and to retain the right to receive a certain percentage of the value of the trust in income each year during your lifetime and/or the lifetime of your designated beneficiaries. The amount of payments received during the pay-out period depends on how you structure the trust. Your gift to a Charitable remainder Unitrust provides an immediate income tax and gift tax charitable deduction. Income payments typically will be received and taxed to the beneficiary in part as ordinary income and in part as capital gain. You may explore using the Episcopal Church Foundation as trustee of a Charitable Remainder Trust, use other charitable organizations as trustee or you may be your own trustee.
For more information about establishing trusts, click on How to Establish a Charitable Remainder Trust.