Life Income Gifts
One way to support Pine Street Inn while maintaining your current financial situation is by making a “life income gift.” There are two types of life income gifts — charitable gift annuities and charitable remainder trusts — each with its own benefits.
Charitable Gift Annuity
A charitable gift annuity is a simple contract between you and Pine Street Inn, in which Pine Street provides a fixed annual income for one or two people for life, in exchange for a gift. Rates are based on the gift amount and age of the annuitant(s) at the time of the gift. You are eligible for a partial income tax charitable deduction in the year the gift is made if you meet the itemized deduction threshold.
A gift annuity can be established with a modest contribution and provides a number of very attractive benefits. You can:
- Fund it with cash or marketable securities
- Qualify for an immediate income tax charitable deduction for the gift (subject to certain income limitations), and
- Potentially spread out any capital gains tax liability.
What’s more, part of your annuity payment may be free of federal income tax for a certain number of years. As a donor, you can select the payment intervals (usually quarterly or annually) and name the annuitant(s)—one or two persons.
Now is a great time to consider this giving option as gift annuity rates are the highest they’ve been in years.
Charitable Remainder Trust
One method of making a gift that creates an income stream is a charitable remainder trust. Benefits include:
- An income for you and/or your beneficiaries for life or a period of up to 20 years
- An immediate and substantial income tax charitable deduction (subject to certain income limitations) for itemizers
- Potential to bypass current capital gains taxes when the trust is funded with long-term appreciated property
- Reduction of your assets to minimize or avoid estate taxes
- Substantial reduction of probate costs, taxes, and other estate transfer expenses
An Immediate Charitable Deduction
A gift to a charitable remainder trust qualifies for an immediate income tax deduction, even though income will be paid to you (and/or other beneficiaries) for life. The exact amount of the charitable deduction depends on the:
- value of the property transferred to the trust
- amount of income benefits that are payable each year to individual beneficiaries
- approximate length of time the income benefits will be paid
- prevailing interest rates at the time the gift is made
Despite the tax and financial benefits of a charitable remainder trust, you should consider this kind of arrangement only if you and your advisors determine it is compatible with your overall estate, tax, and financial plan.
Please click here if you’re interested in receiving a personalized charitable gift annuity and/or charitable remainder trust illustration from us
We are here to help!
Please contact Davi Axinn Levine, Director of Planned Giving, at 617.892.9244 or Daxinnlevine@pinestreetinn.org for information on gift strategies that can help you support Pine Street Inn and provide significant benefits to you and your family.
Visit here to explore our selection of brochures highlighting planned giving opportunities — request the ones that interest you.
Tax ID number: 04-2516093
Address: Pine Street Inn, Attn: Development, 444 Harrison Avenue, Boston, MA 02118