Giving a Gift that Pays an Annual Income for Life
Many people would like to make a substantial gift from their assets, but are also concerned about having enough income during their retirement years.
If you share that concern, there are ways you can give a substantial gift to ICCF now and also receive a steady dependable stream of income for life (or for a designated number of years), typically at a higher rate of interest and with considerable tax savings. The remainder will then benefit ICCF at your life’s end.
Charitable Gift Annuity
A Charitable Gift Annuity provides you with a fixed annual income for life at an attractive rate, often double or triple the typical rate for CDs. A portion of the gift is tax deductible in the year given, and if the gift is given using appreciated stock, for instance, there will also be a considerable reduction in capital gains tax. In addition, a portion of your annual annuity payments will be excluded from taxable income.
The minimum gift for an ICCF Charitable Gift Annuity is $10,000, and the amount of income you will receive depends on a number of factors. The older you are when you begin a gift annuity, the higher your annual annuity income. For example, a single person who is 70 years old receives an annual payment rate of 5.6%, while the payment rate for a joint life annuity, covering two people both of whom are 70 years old, would be 5%. The rate for a single individual 80-years-old is 7.3%. For a single individual who begins a charitable gift annuity at age 85, the rate is 8.3%.
Charitable Remainder Trust
A Charitable Remainder Trust is another gift arrangement in which an individual or couple can give a substantial gift in support of ICCF’s long term ministry and also receive income for life.
Unlike Charitable Gift Annuities, you can select an annual payout rate at the time a Charitable Remainder Trust is created. The minimum percentage must be at least 5%, and the maximum allowable percentage depends on your age or the term of the trust.
A Charitable Remainder Annuity Trust (CRAT) provides fixed payments year after year, based on a specified percentage of the value of the assets originally placed in the trust. With a Charitable Remainder Unitrust (CRUT) you’ll receive variable payments based on a fixed percentage of the value of the assets in the trust, as computed on January 1 of each year. The amount does not vary, even if the value of the assets in the trust increases or decreases.