Gift
Annuities
A charitable gift annuity is, essentially, an annuity
contract. You transfer assets to us; in return, we agree to make regular, fixed
payments to you for the rest of your life. The transaction is both a purchase
of an annuity and a charitable contribution. Your benefits include guaranteed,
specified, regular income, part of which may be tax-free; an immediate income
tax deduction; possible estate tax savings; and, if you give appreciated
property, possible favorable tax treatment on the gain.
The
amount of the income tax deduction depends upon the amount of the gift, the age
of the annuitant when the gift annuity is purchased, life expectancy and
whether the annuity is for one life or two.
Deferred Charitable Gift Annuity
The deferred charitable
gift annuity makes it possible for you to get an immediate income tax
deduction, yet defer the receipt of income until a set date in the future. You
determine the date the annuity payments start.
When payments begin, they will be at a much higher level than for an
annuity that is not deferred. This plan can have the advantages of a tax
shelter, because you can receive your deduction in a high-income year and defer
income until a later year when your income and tax bracket may be lower.
Charitable Remainder Annuity Trusts
You can
create a charitable remainder annuity trust by irrevocably transferring cash,
securities or other property to a trust for our benefit. In exchange, you
and/or your designated beneficiaries will receive a fixed dollar amount, at
least annually, for life or for a fixed term up to 20 years. At your death, the
death of your beneficiaries or the end of the term, the trust terminates and
the assets are transferred to us.
Your
income tax deduction depends upon the age of your beneficiaries or the term of
the trust, the percentage to be paid out, and the fair market value of the
gift. The payout is based on the value of the assets at the time the annuity
trust is established, and it remains fixed for the term of the agreement. Generally,
there is no tax on the gain on gifts of appreciated assets.
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Unitrusts
A
charitable remainder unitrust is a trust established when you transfer assets
to a trustee for our benefit. As with other life income plans, you retain an
income interest in the property and continue to receive the income from it for
as long as you live, for your lifetime and that of another beneficiary, or for
a fixed term up to 20 years. Because we are given a remainder interest, you
become eligible for substantial tax benefits.
Whereas a
charitable remainder annuity trust provides a fixed amount of income determined
at the creation of the trust, the unitrust pays a percentage of the trust
assets, as revalued annually.
The
amount of the tax deduction depends upon the ages of the beneficiaries or the
term of the trust, the percentage to be paid, and the fair market value of the
assets used to fund the trust. If the trust is funded with cash, you may deduct
up to 50 percent of your adjusted gross income annually; if it is funded with
appreciated securities, you may deduct up to 30 percent. Of course, the five-year carry-over
provisions apply with this type of gift.
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Pooled Income Funds
A pooled
income fund appeals to those with sufficient income but no substantial capital,
as well as to those with capital who don't feel they can give up the income on
the contributed assets.
The
pooled income fund commingles your gift with those of other donors. You receive
a pro rata share of the fund's dividends and interest, all of which must be
paid out. Your portion of the income is taxed to you as ordinary income.
CONTACT
US
The Vice President of
Development is available between the hours of 8:00 a.m. - 5:00 p.m.
Phone:308-696-7411
Toll Free:800-662-0011
E-mail:foundation@mail.gprmc.com
"Thank you for Caring"
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