What's Your Capacity for Giving? Choose the Best Method

Your stage in life, your financial circumstances and your charitable goals all affect when, how and to which charitable organizations you make gifts. Because your decision to support your favorite charitable organizations requires such thoughtful consideration, we want to see that your goals are satisfied.

Popular Plans for Future Needs

Effective methods for making planned gifts take many forms, such as a bequest through your will, a revocable trust, a unitrust, an annuity trust or a lead trust. Here is an overview of two of the most popular techniques.

Charitable remainder trust (CRT). In return for establishing a CRT, you receive an income for life and an immediate income tax charitable deduction.

There are two types of CRTs. An annuity trust will pay you the same dollar amount you choose at the start. A unitrust will pay you a variable amount based on a fixed percentage of the fair market value of the trust's assets, revalued annually.

Charitable gift annuity. A charitable gift annuity pays you fixed annual payments for life when you make an irrevocable contribution of cash or marketable securities. The amount you will receive can be partly income tax-free. The payment rate, which remains constant, is determined by your age and the age of any other annuitant you name.

Choosing the Right Plan

For preretirees, ages 40 to 60. Consider a deferred payment gift annuity to supplement your other retirement benefits. You make the contribution now, securing a large current income tax deduction. We agree to make annual payments to you for life, starting at any date you name after age 55. This is advantageous if your tax bracket is higher now than it will be later. In addition, the annual payment is considerably higher when the payments begin.

For retired persons, ages 60 to 75. A unitrust provides a hedge against inflation. If you are more concerned about a declining market, however, an annuity trust is a better choice. For married couples, a two-life unitrust or annuity trust may make sense.

For all ages. A charitable bequest in your will ensures a valuable estate tax deduction. You can give cash, specific personal or real property or a share of your estate's residue.

The End Result

We can help you weigh personal factors and make detailed calculations of income and tax benefits you will receive through a gift to your favorite charitable organizations.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.



The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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