Charitable Gift Annuities and Charitable Remainder Trusts

A gift annuity is  a contract between you and Brooks. In exchange for a gift of cash or securities, Brooks will pay you and/or a loved one a fixed amount annually for the rest of your lives, providing a steady stream of support you cannot outlive. Additionally, a portion of this income is not taxed. You also receive a charitable deduction for part of the gift as calculated by your age and IRS tables. At the passing of the income beneficiaries, the remainder is directed to Brooks for a purpose you may indicate.

There is also the opportunity to create a gift annuity now but to defer the income until a later date, such as when you retire. The deduction is taken when the gift is funded, which is usually during higher-earning years, and thus protects current income. The minimum to create a gift annuity is $10,000.

A charitable remainder trust is similar to a gift annuity in that it provides an income, but it is one based on the value of the trust and varies each year. If managed well, the trust’s income could grow over the years, providing protection against inflation. A CRT can accept a broader range of assets (cash, marketable securities, real estate), a greater number of income beneficiaries and can run for beneficiaries’ lives or a specified term. Brooks can serve as the trustee for the trust or you (you, your bank or your brokerage firm) can serve. You receive a charitable deduction for part of the gift, calculated by the agreed-to pay-out rate and IRS tables, and other tax savings can be realized. At the conclusion of the term, the remainder is paid to Brooks to support the purpose you may indicate. The minimum to create a charitable trust which Brooks manages is $100,000.

Charitable Lead Trust

You can support Brooks today for a term of years or for the life of an individual by creating a charitable lead trust. Once funded, the trust pays income to Brooks each year during the term of the trust. At the end of the term, the assets and appreciation will pass to the individuals the donor wishes to benefit with reduced or zero gift and estate taxes. And you will have provided Brooks with a significant stream of income to fund priorities you are interested in supporting.

Ask us to prepare a life income calculation for you and show the likely income, deduction and savings you would receive.

Contact the Advancement Office to talk about gifts of real estate, using life insurance to make a gift, and donor-advised funds as an asset for Brooks.