A charitable gift annuity is actually part gift and part purchase of an irrevocable lifetime annuity contract. The portion that represents a gift to Gateway is deductible on your federal income tax if you itemize your deductions. The size of the deduction is determined by the age of the annuitant, the amount of the gift, and the monthly interest rate factor provided by the IRS.
A provision in a will allows for a substantial contribution without diminishing assets during your lifetime. Since bequests are deductible from the estate, significant tax savings are possible.
A charitable lead trust allows you to place in trust assets that will be left to your heirs. In making your gift, you specify your commitment to Gateway Community and Technical College. You then specify a set number of years during which a guaranteed amount or fixed percentage of the value of the assets of the trust will be paid to us. You pay a discounted gift tax when transferring assets to the trust and the trust’s beneficiaries ultimately receive any remaining trust assets free of estate taxes.
A charitable remainder trust is an irrevocable, tax-exempt trust in which you place assets to provide income for yourself during a specific period of time (i.e., your lifetime or a period not to exceed 20 years). After that, the remaining assets are distributed to us as a charitable gift to be used unrestricted or for the restricted purpose you designate. The trust can be funded with an assortment of assets, including bonds, mutual funds, stocks and real estate. There are no capital gains taxes on assets transferred to and sold through a charitable trust. It also has the potential to generate substantial income while at the same time creating an income tax deduction.
A pooled income fund is a mutual fund comprised of donated securities and/or cash. You donate securities and cash to create a pooled income fund, which is then invested as if it were a regular mutual fund, which pays you dividends each quarter in proportion to the amount donated as a percentage of the whole fund. After your death, what remains of your original donation as a percentage of the total donation amount will be used unrestricted or for the restricted purpose you designate. All cash and securities donated to pooled income funds qualify as charitable gifts for tax purposes; importantly, securities so donated are exempt from capital gains tax.
Contact us to discuss planned giving opportunities.