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Gifts That Pay Income

Did you know there are ways to make gifts to Gordon College that will also make payments to you? Some of the best ways to create a lasting legacy is through one of these income producing gifts.

CHARITABLE GIFT ANNUITIES

The charitable gift annuity is the easiest and most popular gifts that produces income. Set up a charitable gift annuity with Gordon College and receive a stable, fixed income for the rest of your life. If you are a younger donor in your high-earning years and still investing for retirement, consider a deferred charitable gift annuity to help lower your taxable income.

A charitable gift annuity is a contract between you and Gordon College. To create a gift annuity you transfer cash or securities to Gordon College. In exchange the College agrees to pay you, yourself and a spouse, or any two beneficiaries you name, fixed income for life. The amount of income you could receive may vary depending on your age. The remaining balance passes to Gordon when the contract ends. Our minimum gift requirement is $10,000 and beneficiaries are recommended to be at least 60 years of age at the time of the gift.  

Benefits:

A charitable gift annuity creates a steady stream of fixed income for life, regardless of fluctuations in the market. You will receive an immediate income tax deduction for a portion of your gift. A portion of your income stream may even be tax-free. You will have the satisfaction of knowing that you are furthering the mission of Gordon College.

Deferred Charitable Gift Annuities:

A deferred charitable gift annuity offers all the features and tax benefits of an immediate payment gift annuity. However you will begin receiving annuity payments at a future predetermined date, and the beneficiaries must be 70 years of age or older at the time annuity payments begin. Because of the delay of payments deferred gift annuities offer a higher payout rate than an immediate-payment annuity. The longer you elect to defer payments, the higher your payment will be. You can schedule your annuity payments to begin when you need extra income, such as retirement years. Individuals who “ladder” personal investments may find deferred gift annuities more appealing.

CHARITABLE REMAINDER ANNUITY TRUSTS (CRAT) 

If you want flexibility to invest and manage your gift, as well as a steady, stable income stream, a charitable remainder annuity trust may be the right gift for you.

In a charitable remainder annuity trust (CRAT), you transfer cash, securities, or other appreciated property into a trust. The required minimum to fund this type of gift is $250,000. The trust makes fixed annual payments to you or to beneficiaries you name for the beneficiaries’ lifetimes, for a term of up to 20 years, or for a combination of both. When the trust terminates the remainder passes to Gordon College to be used as you have directed.

Benefits:

A charitable remainder annuity trust creates a steady stream of fixed income for life or a term of years. You will receive an immediate income tax deduction for a portion of your contribution. You will also avoid paying capital gains tax on the sale of your appreciated assets you donate.  Additionally, the transfer of assets to the trust will remove those assets from your taxable estate. A charitable remainder annuity trust may be the perfect solution to help you meet income needs related to specific times, such as college tuition payments or retirement, while giving you the satisfaction of knowing that you are furthering the mission of Gordon College.

CHARITABLE REMAINDER UNITRUSTS (CRUT)

If you want the maximum flexibility regarding the investment and benefits of your gift, consider setting up a charitable remainder unitrust with Gordon College.

The charitable remainder unitrust (CRUT) is the most flexible life income gift available.  In a charitable remainder unitrust, you transfer cash, securities, or other appreciated property into a trust. The required minimum to fund this type of gift is $250,000. The trust pays a percentage of the value of its principal, which is valued annually, to you or beneficiaries you name for the beneficiaries’ lifetimes, for a term of up to 20 years, or for a combination of both. When the trust terminates the remainder passes to Gordon College to be used as you have directed.

Benefits:

A charitable remainder unitrust creates steady income for life or a term of years. Unlike a charitable remainder annuity trust, there is the potential that your income could increase over time with growth in the trust. You will receive an immediate income tax deduction for a portion of your contribution. You will also avoid paying capital gains tax on the sale of your appreciated assets you donate. You have the flexibility of making additional gifts to the trust as your circumstances allow, which will provide additional income and tax benefits. Additionally, the transfer of assets to the trust will remove those assets from your taxable estate. A charitable remainder unitrust may be the perfect solution to help meet your cash flow needs while giving you the satisfaction of knowing that you are furthering the mission of Gordon College.

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