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Gifts that give back

Charitable gift annuity - a gift to Unbound and life income for you

A charitable gift annuity is a relatively simple contract between you and Unbound. In exchange for donated assets, you will receive a partial charitable deduction and guaranteed income for a specified period or your lifetime. A portion of each income payment made to you by Unbound is considered a partial tax-free return of your gift and is non-taxable.

Your annuity contract may also be set up to benefit another person such as a spouse or other family member. Annuitants (also known as beneficiaries) must be 60 years or older to begin receiving benefits.

Try our online gift planning calculator for a personalized illustration.

A minimum transfer of $10,000 or more in cash, marketable securities or other designated assets approved in advance by Unbound is required to fund a CGA. It should be noted that once the transfer is complete, your gift is irrevocable and cannot be returned.

An illustration

Example of how a gift annuity works

How it works

  1. You transfer cash, securities or other property to Unbound.
  2. You receive a charitable deduction, potential tax savings on capital gains, and fixed income each year to you and/or another family member for a specified period or your lifetime. Typically, a portion of each payment is tax free.
  3. When the annuity payments end, the remaining principal is available to Unbound.

Deferred charitable gift annuity option

For donors who do not require supplemental income at the time of their gift, a deferred charitable gift annuity provides another option and allows the donor to decide when payments will begin.

The longer you delay or defer receiving your annuity payments, the higher the payout rate and income available to you. In addition, the higher appreciated value of your gift will result in a larger charitable tax deduction in the year the gift is annuitized and you begin to receive payments.

Download PDF Charitable gift annuity - sample illustrations

Charitable remainder trust - income to you now, a gift for Unbound later

A charitable remainder trust allows you to transfer a current gift of cash, marketable securities, property or other assets to a third-party trustee for the future benefit of a designated charity, such as Unbound. Under the terms of the trust agreement, you may continue to use the property and/or receive income from the gift for a specified period or your life, at which time Unbound would receive the remainder or unused portion of the trust assets.

Try our online gift planning calculator for a personalized illustration.

Your contribution to the trust is irrevocable and the assets cannot be returned once transferred. However, you retain the right to change the designated charity and may have some control over investment decisions. This planning strategy allows you to avoid any capital gains tax on the donated assets, and you will also receive an income tax deduction for the fair market value of the unused portion transferred by the trust to the charity. In addition, the asset is removed from your estate thereby reducing subsequent estate taxes to your heirs.

An illustration

Example of how a remainder trust works 

How it works

  1. You transfer cash, securities or other property to a third-party trustee.
  2. You receive an income tax deduction and pay no capital gains tax on appreciated assets. During its term, the trust pays a fixed amount or percentage of its value to you or anyone you name.
  3. When the trust is terminated, the remaining principal is transferred to Unbound.

More information is available by contacting us or by selecting the links below.

Should you choose to include Unbound in your estate plan, please contact us with the details. Your courtesy notification will allow us to express our gratitude, and to update our files with the intended use of your gift.

Download PDF     Charitable remainder trusts - sample illustrations   

Download PDF    Charitable gift annuity or charitable remainder trust - which is right for you? 

Unbound is a 501(c) (3) non-profit corporation, federal EIN: 43-1243999. Contributions are tax-deductible as allowed by law, unless otherwise noted.

This page provides general information about gift planning and is not intended to provide individual financial, legal, or tax information or advice. Unbound recommends that you speak with a tax adviser, financial adviser or attorney about how to make charitable giving part of your overall financial plan.

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