Life Income Gifts

Charitable Gift Annuity
A charitable gift annuity is a contract between a donor and a charity in which the donor makes a gift to the charity and, in exchange the charity provides a guaranteed fixed sum each year for the life of one or more beneficiaries. The age of the beneficiaries, the value of the asset used to purchase the annuity and the prevailing investment opportunities at the time of the gift affect the amount that can be paid. The gift annuity generates an income tax deduction.

Charitable Gift Annuities are similar to Charitable Trusts, but simpler. The charitable gift annuity is a simple arrangement between the donor and the charity (unlike a charitable remainder trust, which is a legal trust).

Charitable Gift Annuities for the benefit of Morris Arts can be acquired through the Community Foundation of New Jersey.

Charitable Remainder Trust
Under a remainder trust, assets are held and managed by the charitable organization for a specific period of time or upon the donor’s death. During that time the trust provides the owner or beneficiaries with income. Once the agreed-upon period of time is over, the remaining assets become the property of the charity (hence the name Remainder Trust).

Charitable Lead Trust
If you would like to provide significant support to Morris Arts and have little immediate need for additional income, consider establishing a charitable lead trust. With a lead trust, the donor transfers ownership of assets to a trust and it is the charity that leads off by receiving an income interest for a certain period of time, after which the remaining assets in the trust return to the owner or beneficiaries at reduced or no tax cost.

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