Charitable Gift Annuity (CGA) or Charitable Remainder Unitrust (CRUT)
- Receive guaranteed income for life,
- Benefit from an immediate income tax deduction,
- Leave a legacy that supports your passion or community
Charitable Remainder Trusts
Payments are based on age: the older your clients are, the greater the annuity payment. If they choose, they can receive an income tax deduction now and defer receiving the annuity payments until a future date. After receiving annuity payments for life, the remainder interest may be used to establish a named charitable fund, or be added to an existing fund. The tax advantages of both a current and deferred annuity are two-fold. First, your clients receive an immediate charitable income tax deduction when they create the annuity. Second, a portion of the payments they receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the effective value of the annuity payments.
A charitable remainder trust offers your client a great deal of flexibility. Payments may be made to your client or another beneficiary for life, or a specified number of years. The income beneficiaries annually receive is an amount equal to a fixed percentage of the trust's fair market value, or a fixed dollar amount. A charitable remainder trust may be set up during your client's lifetime or through their will. The eventual distribution to the Community Foundation will only take effect upon the death of the trust's income beneficiaries, or at the end of the specified number of years. At this time, the remainder of the trust transfers to the Community Foundation.