Once you determine the good charitable work that will be accomplished as a result of your donation, there are 2 giving options to consider that offer tax benefits and income: the Charitable Gift Annuity and the Charitable Remainder Unitrust. Each has its advantages. Which is right for your unique circumstances?
Let’s Compare
Charitable Gift Annuity
- Fixed income payments for lifetime.
- Rates are based upon age and number of annuitants (maximum 2).
- The older the donor(s), the higher the payout rate.
- Funded with cash or appreciated securities.
- Fully administered by charity.
- Generally works for seniors who are risk adverse.
Charitable Remainder Unitrust
- Variable payments for lifetime or specific terms up to 20 years.
- Rates are fixed with payment based upon the market value of invested assets. If the value of trust increases – so does your payment. If value of trust decreases – so does your payment.
- Funded with cash, appreciated securities or real estate.
- Additional contributions to trust are allowable.
- Requires a legal entity to establish trust agreement.
- Designed for donors willing to take investment risk in order for income to keep pace with inflation.