These types of gifts produce income for you for your lifetime.

Charitable gift annuity
A charitable gift annuity is a contract between a charity and an individual. The individual, called the annuitant, transfers an asset to the charity and in turn, the charity agrees to pay a specified amount to the annuitant(s), to one annuitant for life or two annuitants for both of their lives. There is an immediate income tax deduction for the charitable portion of the transfer. This is usually funded with cash or appreciated securities, but other assets can be used in certain circumstances.

There are two types of gift annuities. The payment to the annuitant(s) can either start immediately or be deferred for retirement income.

Charitable Remainder Trust
A Charitable Remainder Trust (CRT) works somewhat like an annuity. The donor transfers assets into a trust. The trustee sells the asset to fund the charitable trust and, assuming appreciated assets are used for funding, avoids any capital gains tax. The trustee pays the donor or the designee(s) for lifetime(s) or for up to 20 years. When the trustmaker dies or the trust matures, the trust assets go to charity. The fact that a charity received the “remainder” interest in the trust is responsible for its name. There is an immediate income tax deduction for the charitable portion of the transfer. This is usually funded with cash or appreciated securities, but other assets can be used under specific circumstances.

There are two types of remainder trusts.

Charitable Remainder Unitrust (CRUT) – Pays the donor a percentage of the corpus in the trust annually.

Charitable Remainder Annuity Trust (CRAT) – Pays the donor a fixed amount from the corpus of the trust annually.

Any of the above information should not be considered legal, accounting or other professional advice. Please consult your own advisors. The charitable portion of your gift will be, if you so desire, credited to your Elk Foundation Habitat Partnership.