Gifts That Provide Income
Several types of charitable gift vehicles can provide a lifelong income to you (and/or your other chosen beneficiaries) while still supporting Concordia. You get an up-front tax deduction, and the income you receive may be partially tax-free.
Charitable Gift Annuities
With a gift of $10,000 or more, you can establish a Charitable Gift Annuity with Concordia College–New York. A gift annuity is a simple contract whereby Concordia promises to pay one or two beneficiaries (for example, you and your spouse) a fixed amount per year for life. The rate of income, as recommended by the American Council on Gift Annuities, depends primarily on the age of the beneficiary or beneficiaries. Advantages of a charitable gift annuity include simplicity of documentation, a charitable deduction when established, and a tax-advantaged income stream providing a very attractive after-tax yield.
Deferred Gift Annuities
A deferred gift annuity works the same way except that the payments start a year or more after the date of the gift.
Charitable Remainder Trusts
- • Charitable Remainder Annuity Trusts
- The donor or designated beneficiary receives a fixed income determined by a percentage of the initial market value of the trust assets contributed.
- • Charitable Remainder Unitrust
- With a unitrust, the beneficiary or beneficiaries receive a fixed percentage of the annual value of the trust principal. Payments may fluctuate from year to year, since they are based on the changing annual value of the trust. The donor can make additional contributions to a charitable remainder unitrust.
Charitable Lead Trust
A charitable lead trust is a way to transfer assets to family members at a reduced tax cost while creating a funding stream that can support Concordia College’s mission. The trust makes a fixed payment to Concordia for a specified term. At the end of the term, the trust assets are either returned to you or passed on to children or other loved ones. If the assets are to be returned to you, you receive an income tax deduction when the trust is created. If the assets are passed on to heirs, applicable estate or gift taxes on the value of the gift are reduced or completely eliminated. The tax savings from a charitable lead trust may allow you to provide significant support for Concordia College at little or no cost to your children, grandchildren or others whom you designate.