During your lifetime, you may make gifts of cash, securities, real estate or other property and retain a stream of income for yourself or other designated beneficiaries. If you reserve income rights, a portion or all of such income will be taxable to you. However, you will receive a charitable tax deduction for a portion of your gift. At the death of your surviving beneficiaries, the principal goes to UCC Boxborough.
Many people wonder how we can support Life-Income Gifts as a small church. The national setting of the UCC supports our congregation with expertise and facilitates life-income gifts to UCCB. They are ready to help our Planned Giving Team and church members free of charge.
Samples of these gifts include:
Charitable Gift Annuity
A charitable gift annuity provides guaranteed income for life to you or someone you designate in exchange for your gift. With a Charitable Gift Annuity you make a gift of cash or marketable securities in return for guaranteed fixed income for life. The amount of the payout is not affected by market fluctuations! The guaranteed rate you are paid is determined by your age (and/or the age of your spouse) when the gift is made and the annuity rate in effect at the time of the gift. A portion of the gift is deductible from income taxes, and some of the income would be tax exempt. The minimum gift amount is $5,000.
Pooled Income Fund
With a minimum contribution of $2,500, the Pooled Income Fund combines gifts from many donors like you to maximize investment management efficiencies and income. As a contributor to the Fund, you and/or your beneficiaries receive pro rata shares of the income, which is taxable and is based on Fund performance. You will receive an income tax and gift tax charitable deduction for a portion of your contribution, based on the life expectancy of the income beneficiaries.
Charitable Remainder Trust
A Charitable Remainder Trust, using many different asset types, enables you to make a significant gift of $100,000 or more and to retain the right to receive 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 payments typically will be received and taxed to the beneficiary in part as ordinary income and in part as capital gain.