Charitable Gift Annuity
In exchange for a gift of cash or securities to Mount Mary College, you receive a fixed annual payment for the rest of your life. The rate is based on the age of the annuitant. You will incur no immediate capital gain tax on the transfer; part of the annuity payment will be tax-free for the duration of your life expectancy; and you will receive an income tax deduction for part of the gift.
The minimum amount required is $25,000.
Charitable Remainder Trust
A charitable remainder trust benefits designated individuals for life or a period of years and then the trust distributes money or property for charitable purposes. This can provide financial and estate planning flexibility for the donor. It can also be a way of providing income for retirement years and avoiding a portion of the capital gain tax.
This is a separate trust arrangement between the donor and a trustee chosen by the donor. The trustee can be a bank or trust company, other fiduciary, brokerage firm, an individual, a charity or the donor. At the end of the trust term, the remaining principal is distributed to the College.
The minimum amount to establish a trust is $100,000.
This is a trust in which a fixed percentage of the trust property is paid out each year to individual beneficiaries and the remainder passes to charity.
Your lawyer or tax advisor can assist you in establishing the trust.
Charitable Lead Trust
This type of trust basically provides an income to the charity and the remainder to the donor or to another person or persons. A lead trust operates under the terms of the trust instrument drafted by a tax lawyer and is usually managed by a professional trustee chosen by the donor.