How to Give

Not only do you have options for how your gift will be used, you also have options on what to give and how to give. There are gifts that cost you nothing now, gifts that pay you income, and gifts that allow you to decide what happens when.

Charitable Gift Annuity Information Download Charitable Trust Information Read Donor Story

Gifts that Provide Income

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.

Charitable Gift Annuities

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.

Immediate Gift Annuity

You can make your gift, take a deduction, and begin receiving annuity payments right away. .

Deferred Gift Annuity

Take an immediate deduction and defer payments for retirement, usually advantageous for younger donors. Deferment allows for larger and less taxed payments.

Flexible Gift Annuity

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.

IRA > CGA Option

CAA 2023 allows for a one-time distribution to create a life-income gift, most commonly a charitable gift annuity (CGA), and charitable remainder unitrusts (CRT) or annuity trusts. This new type of QCD is a one-time maximum transfer of $53,000 to a qualified CRT, or in exchange with a charity for a CGA. *Important terms and conditions apply. Please contact our office or your financial advisor.

To see what a Charitable Gift Annuity would look like for you, contact us for a personalized illustration.

Charitable Remainder Trusts

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.

There are several types of Charitable Remainder Unitrusts:

  • Standard unitrusts provide income based on a fixed percentage (at least 5 percent) determined at the time the trust is created. The percentage is multiplied by the fair market value of the trust assets at the beginning of each year to determine the payout to beneficiaries for that year. A standard unitrust provides the most investment flexibility and is usually invested for a total maximum return.
  • A net income unitrust provides annual payments in the lesser of two amounts: 1) the fixed percentage of the trust's annual value described above, or 2) the net income of the trust. Younger donors who are not seeking large payments immediately but want to build a fund for potentially higher payments in the future may find this type of trust appealing.
  • A combination or "flip" unitrust is a good option when an illiquid, non-income producing asset, such as real estate or closely held stock, is used to fund a charitable remainder unitrust. The trust begins as a net income unitrust, paying the lesser of the selected payout rate or the actual earnings (for example, rents from real estate) to the income beneficiaries. As of the January 1 after the date of the sale of the assets used to fund the trust, the trust "flips" to a standard unitrust. A flip unitrust can also help you plan for retirement, because the flip date may be set for a date when you expect to retire.

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.