Arrange a Gift that Guarantees Lifetime Payments
You can arrange for what are called “life income” gifts that have the potential to greatly benefit the Library’s mission while also providing you (and optionally a spouse or partner) with a lifetime stream of payments and generous tax benefits.
Life income gifts can take the following forms:
- Charitable Gift Annuity (CGA): A Charitable Gift Annuity is a simple contract between you and the Library. In exchange for your gift of cash or securities (minimum $10,000), the Library agrees to pay you and/or a loved one or a friend a fixed annual sum for your lifetime(s). Annuity payments are guaranteed and rates currently range between 4.0% and 9.0%, depending on your age(s). Annuitants must be 55 years or older to receive payments.
In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If securities are used to establish a CGA, some capital gains tax will be avoided. At the time of your gift, you are entitled to a charitable income tax deduction, and at your death, the Library receives the balance of your CGA.
- Charitable Remainder Trust (CRT): A Charitable Remainder Trust provides lifetime income to you and/or loved ones and significant tax advantages. You transfer assets (usually cash, securities or real estate) to a trustee of your choice through a formal trust agreement. If appreciated property is donated, no capital gains tax is due on the transfer, and your income tax deduction is based on the fair market value of the donated assets. Your trustee invests the trust assets and makes annual payments to you and/or a loved one, based on the payout rate chosen by you. At your death or at the termination of the trust, the principal is distributed to the Library. You may choose a fixed rate of income (Annuity Trust) or a variable rate of income (Unitrust).
- Charitable Lead Trust (CLT): A Charitable Lead Trust allows you to transfer assets to your family at a reduced tax cost while benefiting the Library now. You transfer assets (usually cash or securities) to a trustee of your choice through a formal trust agreement. Your trustee invests the trust assets and makes annual income payments to the Library. At termination, the trust distributes all of its assets, including any appreciation, to your heirs.
For a complimentary gift illustration detailing the benefits of each of these types of gifts, please contact the office of Planned Giving today at 212.930.0568 or email@example.com.