|
Charitable Gift Annuities |
Pooled Income Fund |
Charitable Remainder Trusts |
| Regular |
Deferred |
Unitrust |
Annuity Trust |
| Rate of Payment |
5.7 percent and up depending on number and ages of annuitants. See sample annuity rate table. |
5.7 percent and up depending on number and ages of annuitants at the time of the gift and the length of the deferral period. |
Target yield is 4 percent to secure a reasonable rate of return consistent with the preservation and long-term growth of principal. |
5 percent and above |
5 percent and above |
| Income Payment |
Fixed dollar amount based on age at time of contract |
Fixed dollar amount based on age at time of contract and length of deferral period |
Variable amount; donor’s share of current earnings, based on the size of the gift and the performance of the fund |
Fixed percentage of annual market value of the unitrust agreed upon by donor and The Rotary Foundation at the time of the unitrust agreement |
Fixed dollar amount based on percentage agreed upon by donor and The Rotary Foundation at the time of the annuity trust agreement |
| Minimum Initial Gift |
US$10,000 |
US$5,000 |
US$100,000 |
| Funding Assets |
Cash or marketable securities |
Cash or marketable securities |
Cash, marketable securities, closely held securities, or real estate |
Cash or marketable securities |
| Frequency of Payments |
Generally made quarterly for all types of life income agreements |
| Taxation of Payments |
Portions of payments may be taxable as ordinary income, capital gains, or tax-free |
Taxable as ordinary income |
Portions of payments may be taxable as ordinary income, capital gains, or tax-free |
| Income Tax Charitable Deduction |
Based on market value of gift assets, rate of return, and age of income beneficiaries; deductions may offset up to 50 percent of adjusted gross income for gifts of cash and up to 30 percent of adjusted gross income for gifts of long-term appreciated assets in the year of the gift, with a five-year carryover for any "excess" |
| Minimum Age of Income Beneficiaries |
The minimum age of life income beneficiaries for all types of life income agreements is 50 |
| Additional Gifts |
Can be made by establishing additional gift annuity contracts |
Can be made during donor’s lifetime or by will |
Can be made during donor’s lifetime or by will |
Can be made by establishing additional annuity trusts |