Life Income Gifts
There are several different types of life income arrangements. Among them are Charitable Gift Annuities and Charitable Remainder Trusts, with tax deductions primary and income secondary. Then there are Donor Advised Annuities with flexible, increased income primary and tax deductions secondary.
Charitable Gift Annuities and Charitable Remainder Trusts are the most common life income arrangements used today. With these, a donor relinquishes assets (cash, securities, real estate) to an organization such as Hospice of the Comforter. The organization then sets up an agreement that pays the donor an income for a specified number or years or for life.
When the donor passes away, the balance of the life income agreement flows to the organization. How much income a person receives depends on the age of the donor, the amount placed in the agreement, the number of years payments will be made, how many income recipients are involved and several other factors. In addition to a reliable stream of income, the donor is usually entitled to significant tax benefits such as a bypass or deferral of capital gains taxes, a charitable deduction that can be applied to income taxes in the year the instrument is established, and reduced or eliminated estate taxes.
Donor Advised Annuities provide more control and increased, flexible income than Charitable Gift Annuities for the donor. The donor determines the amount of their increased income they want to share with organizations such as the Hospice of the Comforter, and can adjust this amount as future needs dictate. The donor maintains control of the asset (cash only), and flexibility in the amount of income they receive under the terms of the annuity contract. Their income tax deduction is based on the amount of income they designate for the Hospice of The Comforter.
If you would like to explore which charitable giving arrangement is best for you, please consider meeting our planned giving counselor to go over your options and receive an illustration prepared specifically for you. An informed decision can be made once you have all the facts and figures. Please contact our planned giving counselor at 407-682-0808 to learn more.
A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION FOR ORGANIZATION #CH2236 IS AVAILABLE FROM THE DEPARTMENT OF CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE STATE. 1-800-435-7352. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.