Income First – Giving Later
Ralph and Marge are in their retirement years and prayerfully considering how to steward all of their assets—their estate. They live comfortably and have thought about giving some “extra” assets, like CDs and low-dividend stocks, but wonder if they might need the income these assets provide in the future.
The good news? There are charitable options that let them continue receiving income while making a meaningful gift. Here are two ways to do it:
The Charitable Gift Annuity (CGA)
A Charitable Gift Annuity (CGA) provides guaranteed income for life, based on the age(s) of the annuitant(s)—the older you are, the higher the income. Benefits include:
Fixed lifetime income, a portion of which may be tax-free
A charitable tax deduction
Partial avoidance of capital gains tax
The joy of knowing your gift supports Kingdom ministry
A CGA is a simple agreement between you and a specific charity, typically funded with cash or appreciated securities. The chart below shows sample current rates for one- and two-life annuities.
You can read or download our eBook, A Guide to Charitable Gift Annuities, by clicking the link below:
2. The Charitable Remainder Trust (CRT)
Turn Property into Income and Impact—Without the Hassle
Several years ago, Ralph and Marge moved across town and bought a new home. Rather than sell their old house, they kept it as a rental—but after Ralph passed, Marge found managing the property stressful. She didn’t want to deal with broken toilets, tenants, or maintenance.
That’s when a charitable gift planner suggested a Charitable Remainder Trust (CRT). By giving her rental property to a CRT, Marge could:
Receive income for life, similar to her rental income
Enjoy a charitable tax deduction
Leave a cash gift to her favorite ministry after her lifetime
Now, Marge gets the income she needs without the headaches of property management—and knows her gift will make a lasting Kingdom impact.
Like a Charitable Gift Annuity (CGA), CRTs provide lifetime income—but with more flexibility. You can choose fixed or variable income and fund the trust with cash, appreciated securities, or other non-cash assets. While CGAs often suit older donors, CRTs can work for younger adults too.
CRTs are most effective for gifts of $100,000 or more and can be tailored to your specific needs and assets. If you want lifetime income while making a generous gift, a CRT may be the right solution.
Learn More
Read or download our eBook, A Guide to Charitable Income Agreements, by clicking the link below.
Make your Generosity Lasting Work
Want to see how a Charitable Gift Annuity or Charitable Remainder Trust could provide income for life while supporting the mission you love? We can create personalized illustrations and guide you every step of the way.
Take the Next Step
Contact us today by clicking the link below—we’re here to help you make a lasting impact.