Life income gifts allow you to give a meaningful lifetime contribution without sacrificing your present stream of income. By making a life income gift to the AMC, you will receive the following benefits, in addition to the satisfaction of knowing that you will be fostering the AMC's mission:
- Charitable deduction in year of gift.
- Substantial income tax savings.
- More favorably taxed income in some plans.
- Possible reduction in probate and estate administration costs.
Gift Annuities
We offer two types of gift annuities managed by Citizens Bank.
Charitable Gift Annuity
In exchange for your gift of cash or marketable securities to the AMC, you (and/or another beneficiary) will receive a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life. Annuitants must be 55 years or older and the minimum annuity is $5,000.
The AMC uses the charitable gift annuity rates recommended by the American Council on Gift Annuities. A table explains rates for a single-life charitable gift annuity.
The rates for two lives are less than rates for one life simply because the period of payment may be longer. Another table offers sample rates based on two lives.
Deferred Gift Annuity
You can make the gift now, and the AMC will pay you (and/or another beneficiary) life income starting at any date you specify. This is a great option if you are concerned about retirement income or are thinking about future college payments. Also, you receive the income tax deduction in the year you make the gift. The amount you receive each year depends on the amount transferred, your age now, and your age when the payments are to start. There is a $5,000 minimum for deferred gift annuities, and no age limit for deferred annuitants.
Charitable Remainder Trusts
This life income plan is created by transferring assets to a trust that pays you (and/or another beneficiary) income for your lifetime. Then, the remaining trust assets are transferred to the AMC. Trusts begin at $100,000. A bank or trusted advisor can serve as trustee.
The type of charitable remainder trust you choose determines whether your annual payments are fixed or fluctuate with the market.
Annuity Trust
The charitable remainder annuity trust pays you a fixed dollar amount annually for life. You determine the amount of the fixed payments by deciding the payout percentage when you establish the trust. You can claim a charitable deduction on your income tax form the year that you create the trust. The payments you receive can be taxed as ordinary income, and in some cases as capital gains or tax-free return of principal.
Unitrust
The charitable remainder unitrust pays you a fixed percentage of the fair market value of the trust assets, as revalued each year. Like the annuity trust, you can claim a charitable deduction on your income tax form the year that you create the trust. Again, the payments you receive can be taxed as ordinary income, and in some cases as capital gains or tax-free return of principal.
Pooled Income Fund
Your gift of money, marketable securities, or both to the AMC's Pooled Income Fund is invested together with similar gifts from other supporters. You are entitled to a charitable income tax deduction in the year in which the gift was made. You and/or another beneficiary receive your share of the Fund's earning each fiscal quarter for life. After that time, ownership of the assets passes to the AMC. Your quarterly earnings are taxable as ordinary income.
Citizens Bank manages the AMC's Pooled Income Fund. The Fund is reserved for donors 60 years and older. An initial minimum gift amount of $5,000 applies. Additional gifts of $1,000 can be made at any time.
For more information call 617-523-0655, ext. 309, or email us by selecting "Donations" from this email form.
Please note: This is general information and is not presented as specific legal or tax advice. Donors should consult with their financial advisors for counsel.
