Gifts That Pay You Income

Receive an Income from Your Gift

"I will give away my apple tree, so long as I (or someone I choose) can keep the fruit the tree produces, every year, for life." That's the very simple concept behind a special category of gifts known variously as "deferred" gifts, "planned" gifts or "life income" gifts. These gifts enable you to make a gift of significance, receive a partial tax deduction and yet keep an income for life for you or others. The income can be fixed or variable. Depending on how your gift is arranged, you can plan for:

• Increased income for your family;
• Capital gains tax avoidance;
• Minimized taxes on your income;
• Increased income at retirement;
• Diverting of income to someone in a low tax bracket;
• Gift tax and estate tax savings; Professional management of your funds;
• A hedge against inflation; Reduced probate costs;
• Provide college funds for grandchildren.

Call us before you sell and reinvest securities or real estate, or "roll over" low-yield certificates of deposit. We can help you plan a life income gift that is right for you, your family and our organization.

The most popular forms of “life income gifts” are charitable gift annuities and charitable remainder trusts.

A charitable gift annuity is a contract between you and the National Osteoporosis Foundation in which you exchange a gift of cash or securities for a fixed income each year for the lifetimes of one or two people named by you. Your gift annuity offers four distinct advantages:

• Income for life – of between 5% and 11.3%, depending on the ages of the recipients;
• Tax deduction savings – Up to 50% of what you transfer to the Foundation is a deductible charitable gift;
• Tax-free income – a large part of your annual payments is tax-free return of principal;
• Personal satisfaction – from making a gift of significance to the fight against osteoporosis.

For a personalized illustration of the income and tax benefits of a charitable gift annuity in your situation, just click on the “Self-Help Gift Calculator.”

The charitable remainder trust is a lifetime trust, customized for each donor, under which you will be paid annual benefits for life; the trust property will benefit the National Osteoporosis Foundation only after your death. Benefits include:

• An immediate income tax deduction is available when you create a qualified charitable remainder trust during your life. The amount of the deduction will depend on your age and the amount of the benefits you want to receive each year.
• You can transfer stocks or other appreciated property to the trust without losing anything to capital gains taxes on your paper profit.
• You can choose between fixed payments (an annuity trust) or a variable income plan (unitrust) and decide the amount of income you will receive each year. In many cases, your income will be favorably taxed.
• The cost of settling your estate will be minimized and there may be valuable estate tax advantages.
• The trust you establish to benefit the Foundation generally can be tailored to meet your individual financial needs and objectives, including saving for retirement, sale of a business, helping a grandchild with college expenses, assisting a parent or other family member and many others.

For more information on the benefits of life income gifts and other contribution options, please click on “Chart Your Path” or the “Self-Help Gift Calculator.” And feel free to call our office!