Legacy Giving Options – Income Producing Gifts

Legacy Giving OptionsHinrichs and Claire

Bequests

Income Producing Gifts

  • Charitable Gift Annuity
  • Pooled Income Fund
  • Charitable Remainder Trust

Gifts That Pay You Income During Your Lifetime

You can make a gift to Beacon while retaining needed income. Benefits of these gifts are regular payments to you and your spouse or partner for life and include tax deductions. These income producing legacy gifts can be established through the Unitarian Universalist Association (UUA).

  • Charitable Gift Annuity
  • Charitable Remainder Trust
  • Pooled Income Fund

Charitable Gift Annuity

A charitable gift annuity is an agreement between you and the UUA in which you designate Beacon as a beneficiary. A charitable gift annuity offers a tax-advantaged way to provide income to you and your spouse or partner in the form of a fixed quarterly payment during your retirement. In the future, the remainder of your gift, typically 50% of the initial amount you invested, will be passed to Beacon as a charitable contribution. The minimum amount required to establish an annuity is $10,000.

The gift generates an immediate income tax deduction at the time the annuity is established and part of each annual payment you receive may be tax-free for a number of years depending on your age. You can receive income immediately or at a predetermined future date. One or two beneficiaries can be designated in a charitable gift annuity, which can continue to benefit the surviving beneficiary after the death of the first. A charitable gift annuity is easy to affect and is irrevocable.

See Unitarian Universalist Association (UUA) Charitable Gift Annuity Brochure

Pooled Income Funds

Similar to a charitable gift annuity, you receive income on funds invested in the UUA Pooled Income Fund. A pooled income fund allows you to minimize investment risk and overhead expenses. Your contributions are pooled with gifts from other donors and invested in a diversified portfolio. Income earned on the portfolio is taxable and based on actual interest and dividend earnings that result in variable quarterly payments. Income earned is distributed proportionately each year to those who have contributed.

Tax benefits include avoidance of the capital gains tax and a charitable tax deduction in the year the gift is made. After the death of the last beneficiary, the proportionate share of the fund’s assets is distributed to Beacon. The minimum amount required to participate in the UUA Pooled Income Fund is $5,000. The minimum age to receive income is 60. A contribution to the UUA Pooled Income Fund is easy to affect and irrevocable.

See UUA Pooled Income Fund Brochure

Charitable Remainder Trust

A charitable remainder trust enables you to arrange for a very significant gift to Beacon while first providing income for yourself and others you name. You can create a trust with a minimum value of $100,000. A trustee manages the assets for the beneficiaries.

You and others you designate are the income beneficiaries and Beacon is the charitable beneficiary. Each year, the trust will distribute to the income beneficiaries income that is either fixed or varies with the performance of the trust assets. When the trust is dissolved, typically at the death of the last beneficiary, the assets are distributed to the congregation. A charitable remainder trust can be established through the UUA to benefit Beacon.

Prospective donors should consult their own financial adviser, accountant, or attorney to plan the legacy gift that maximizes benefits to them and Beacon.