Creating a charitable gift annuity or charitable trust to benefit the MCV Foundation is a great way to support a program that is dear to you while also taking care of yourself or loved ones. In addition, these gift types may entitle you to tax savings.
A Charitable Gift Annuity is a simple contract between you and MCV Foundation in which MCV Foundation agrees to pay a fixed amount each year to one or two beneficiaries in exchange for a gift. The amount of the annuity payment will depend on the ages of the annuitants and the value of the assets donated. MCV Foundations follows the rates that are suggested by the American Council on Gift Annuities, a national organization. Upon establishing a Charitable Gift Annuity, you are entitled to a current charitable income tax deduction for a portion of the value of the assets given to fund the Charitable Gift Annuity.
There's a Charitable Gift Annuity option for everyone. Younger donors may benefit from creating a deferred or flexible deferred charitable gift annuity, taking a tax deduction in the year of the gift but delaying the first annuity payment for one or more years. This approach can offer dependable retirement income beginning at a future date. The annuity rates are based on several factors, including the ages of the annuitants and length of the deferral period.
Charitable Gift Annuities provide the assurance of a fixed payment for life, a portion of which may be partially tax free. As with other gifts, you can designate how you would like MCV Foundation to use the remaining value of the annuity when the annuity ends.
You can make your gift, take a deduction, and begin receiving annuity payments right away. .
Take an immediate deduction and defer payments for retirement, usually advantageous for younger donors. Deferment allows for larger and less taxed payments.
This is like a deferred gift annuity, with a donor-directed option to delay the payments. The longer you wait to receive payments, the higher the payout rate and the larger your income payments will be.
Charitable Remainder Trusts are similar in concept to Charitable Gift Annuities, but they can be more individualized and funded with a broader range of assets. In addition to cash and appreciated securities, you can also fund a charitable remainder trust with real estate or other appreciated property.
You establish a Charitable Remainder trust by irrevocably transferring assets to a trustee, who then makes fixed annual payments to you and/or other beneficiaries. You receive an immediate charitable income tax deduction for a portion of value of the assets you transfer into to the trust. At the end of the trust term, the remaining assets are distributed to MCV Foundation for the purpose you designate.
There are two ways to receive payments from a Charitable Remainder Trust, an annuity trust provides a lifetime income stream that is determined as a fixed amount, or a unitrust that makes payments as a percentage of the value of the trust, revalued annually.
MCV Foundation does not serve as trustee for charitable trusts, but we are happy to work with you and your advisor to explore the possible advantages of making this type of gift.