Gifts That Provide Income
These gifts pay you in return.
A “Philanthropic Mutual Fund”
Pooled Income Fund
A pooled income fund works like a philanthropic mutual fund. Your gift to Diocese of Trenton is pooled with gifts from others who are supporting us, and it is invested to pay you a quarterly income calculated from your proportional share of the fund. When each participant passes away,
Diocese of Trenton receives a gift in the amount of the participant’s proportional share of the fund. Using appreciated assets to fund your share of a pooled income fund helps you to avoid capital gains tax on the gifted asset.
Pooled Income Funds, or PIFs, are best suited to philanthropic donors who are “investors.” They are often interested in and invested in the stock market, so this type of gift appeals to the prospect’s financial type while providing them with a comfortable way to make a meaningful gift to Diocese of Trenton.
The Gift that “Pays” You Back
You can give and get! In a Charitable Gift Annuity, you and Diocese of Trenton agree to exchange your irrevocable transfer of cash or securities to Diocese of Trenton for a fixed income payment to you — for life. The gift also entitles you to an immediate charitable income tax deduction. At the end of its term, the annuity balance goes to Diocese of Trenton to support its mission. No wonder the Charitable Gift Annuity is one of the most popular of all planned gifts!
Charitable Gift Annuities are great for donors who want to make a gift but need retirement income now in order to take care of current or anticipated expenses. Typically, this is for conservative donors who are cash conscious or who are concerned about their own or a spouse’s needs as they age. Donors who are concerned about their children’s retirement may be interested in funding a deferred flexible gift annuity for their children’s benefit.
Receive Payments; Defer Gains
A charitable remainder unitrust is a separately invested and managed charitable trust that pays a percentage of its principal, revalued annually, to you and/or other income beneficiaries you name for life or a term of years (up to a maximum of 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust. After the unitrust terminates, the balance or “remainder interest” goes to Diocese of Trenton to be used as you designate.
You like flexibility. You can use almost any asset to fund a unitrust, including cash, publicly traded stocks and bonds, closely held stock, partnership interests, and real estate. You can tailor your unitrust to meet many financial or estate planning goals. You can choose to receive income beginning immediately or you can structure the trust and its investments to defer most of your income to a future time (a Flip Unitrust). Due to the slightly complex nature of this gift, it’s best to discuss it with your financial advisor or attorney.
Decide When to Receive Payments
Remainder Annuity Trust
A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, and/or other beneficiaries, a fixed annuity for life or for a term of years (up to 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust. No upfront capital gains tax on any appreciated assets contributed to the annuity trust. The income received may be taxed favorably thus possibly reducing estate tax liability. After the annuity trust terminates the balance or “remainder interest” goes to Diocese of Trenton to be used as you designate.
You want to make a major gift while retaining or increasing your income from the assets you contribute. This gift is even more attractive if you hold appreciated stocks or bonds and want to avoid the capital gains cost of a sale. Donor also prefers the stability of a fixed income.