A life income gift allows you to make a gift to Guide Dogs while providing yourself or others with income today.
You can do this by transferring securities, money, or other property. The gift is then invested and pays an income to you, your designated beneficiaries, or both. Income payments continue for the beneficiary's life or, in some cases, for a term of up to 20 years. After that period, the assets remaining from your gift go to Guide Dogs for the Blind.
Life income gifts provide significant assets for GDB and provide steady, long-term income for you.
They may take many forms, including all of the following types of gifts:
- Charitable Gift Annuity
- Deferred Gift Annuity
- Charitable Remainder Unitrusts
- Charitable Remainder Annuity Trust
- Can be tax deductible
- Requires no capital gains tax
- Provides continued income
- Generates increased cash flow from your invested assets
- Supports Guide Dogs for the Blind
Charitable Gift Annuity
A gift annuity is a simple, contractual agreement between you and GDB in which you give cash or securities (valued at $5000 or more) in exchange for our promise to make payments of a fixed amount to you (and/or another individual, if you choose) for life.
Deferred Gift Annuity
This plan is similar to the gift annuity in every respect except that your annuity payments do not begin until a future date of your choosing (such as the date you retire). The deferral of annuity payments results in a higher payout once the payments begin, and a larger income tax deduction in the year you establish the annuity. Thus, the deferred payment gift annuity is particularly well-suited to the donor who wants an immediate tax deduction, but not additional income right away and a tax-advantaged vehicle for retirement income.
Charitable Remainder Unitrust
Transfer money, securities, real estate or other assets to a trust that will then pay you (and another beneficiary, if you wish) an income for life or for a period of years. At the death of the surviving beneficiary or at the end of a term of years, the remaining principal in the trust goes to GDB. Trust income fluctuates with the value of the trust assets. When the trust is established, you determine the annual percentage that will be paid.
Charitable Remainder Annuity Trust
A Charitable Remainder Annuity Trust pays a fixed percentage of the initial value of the trust at least once a year. Unlike a charitable remainder unitrust the payments do not fluctuate. The payout is constant regardless of fluctuation in the value or trust earnings. In an annuity trust, if trust earnings are insufficient to make the required payments in any year, the difference is paid from trust principal.