Life Income Gifts
If you are considering a major gift, a “life-income” gift may be an excellent year-end gift. Such a gift can increase your own income!
You could transfer cash or stock to us and establish a “charitable remainder unitrust” or “charitable remainder annuity trust” that would provide you with 5% or greater annual return. This income would be paid to you and/or a loved one for life, after which the assets would be distributed to us. Through such an arrangement, you would be increasing your income and making a meaningful (and tax-deductible) contribution to us at the same time.
Example: Suppose Mrs. Barnes, age 75, purchased some stock many years ago for $10,000 and that the stock is now worth $100,000. But, she receives only $2,000 per year in dividends, or a 2% yield. By transferring the stock to a charitable remainder trust and specifying that she wanted a 6% return for life, she could: