Gifts that Pay Income for Life (Gift Annuities and Charitable Trusts)
Many of our donors provide generous support for Feeding America and enjoy lifetime income and significant tax benefits by establishing charitable gift annuities and charitable trusts.
A charitable gift annuity is a simple contract between you and Feeding America. In exchange for your irrevocable gift of cash, securities or other assets, Feeding America agrees to make fixed cash payments (in quarterly installments) for the life of one annuitant, usually the donor, or the lives of two annuitants, typically the donor and the donor's partner. Payments begin immediately after the gift is made. Annuitants must be 65 years of age or older.
With a deferred payment gift annuity, your income payments begin at a future date that you specify. Because payments are deferred, you will receive a higher annual income, which may be used as a source of guaranteed retirement income. Annuitants must be 35 years of age or older at the time the gift is made.
Financial benefits of gift annuities may include a federal income tax charitable deduction, reduced and deferred capital gains tax on appreciated property, reduction of one's taxable estate, and enhanced cash flow.
The minimum contribution required to establish a gift annuity is $10,000. Cash, stock, mutual fund shares, real estate or other property may be used to fund an annuity. Your annuity is administered by Feeding America at no cost to you. Feeding America follows the American Council on Gift Annuities' suggested rates.
A charitable remainder annuity trust (CRAT), an irrevocable trust, typically provides income to one or two beneficiaries, the remainder going to charity. The donor specifies in the trust document how income is to be determined. You may add funds to your trust whenever you like. Each year, a fixed percentage of the trust's current value is paid to your income beneficiaries.
With a charitable remainder unitrust (CRUT), a fixed amount of the fair-market value of the trust, determined annually, is paid out. The amount paid will vary with the investment performance of the trust.
Through a charitable lead trust (CLT), you can provide for the future transfer of assets to your heirs in a tax-efficient manner, while providing investment income to Feeding America for a set period of years.
Financial benefits of charitable trusts may include a federal income tax charitable deduction, reduced and deferred capital gains tax on appreciated property, reduction of one's taxable estate, and enhanced cash flow.
Questions about leaving a bequest to Feeding America and/or planned giving? Please contact us.