Planned Gifts

Gifts that Provide a Lifetime Income - Gifts that Give Back

Charitable Gift Annuities: Guaranteed Income and Tax Benefits

  • A Charitable Gift Annuity (CGA) is a simple one-page contract between Elim Park and you, the donor. We promise to pay a fixed, predetermined amount monthly, quarterly, semi-annually or annually to you, and/or one other beneficiary for life. If you own highly appreciated securities with low yields, or Certificates of Deposit, CGAs can provide: an immediate tax deduction, increased income, some of which is tax-free, reduction and spreading out of capital gains tax and reduced estate taxes.
  • Charitable Remainder Trusts: A Flexible Investment Plan
    You may use a number of assets to establish a Charitable Remainder Trust (CRT), although most are funded with cash, appreciated securities or real estate. Unlike a Charitable Gift Annuity, you can make multiple gifts to a CRT. Your trustee invests the assets in the trust for growth and income and you and/or other named individuals receive income for life or a term of years. In addition, you may receive a substantial income tax deduction in the year of the donation as well as create significant estate tax benefits.

Gifts from IRAs and other Pension Plans

Since their inception, IRAs and other qualified pension plans have become popular means of building wealth. Today, billions of dollars of assets are owned through these tax-advantaged savings vehicles. These assets can be subject to multiple levels of taxation, potentially as high as 75%. The combination of federal and estate taxes can seriously erode the value of your retirement savings. The law requires that certain minimum distributions must be made after an individual reaches age 701/2. Failure to take the required annual amount results in a large penalty tax on the undistributed amount.

With careful planning you can avoid undesirable tax costs and may be able to make a larger charitable gift than you thought possible, as well as care for your family. Charitable contributions of retirement plan assets offer significant opportunities for tax savings as part of an overall estate plan.

Your Charitable Options

  • Lifetime Transfers
    Donors between the ages of 591/2 and 701/2 may withdraw funds from IRAs or other pension plans without penalty. These withdrawals will be considered taxable income, but will be offset by a charitable tax deduction, to the extent allowed by the Internal Revenue Code.
    Legislation passed in October 2008 allows for the immediate and retroactive extension of the popular Pension Protection Act of 2006 provision permitting taxpayers over 701/2 to make tax-free distributions from their traditional and Roth IRAs directly to Elim Park in 2008 and 2009. To qualify for IRA rollover treatment, you must direct your IRA manager to transfer funds directly to Elim Park. Donors may choose to make charitable distributions from their IRA in any amount up to $100,000. Making gifts in 2008 and 2009 from IRA funds that would be subject to tax if withdrawn voluntarily or under mandatory withdrawal requirements may be a wise choice for many.
  • Testamentary Transfers
    When Elim Park is named as the beneficiary of an IRA or other pension asset, at the death of the IRA or pension plan participant, both income taxes and estate taxes are avoided and the full amount of the remaining assets is distributed to the designated organization. If you name someone other than your spouse or a charitable organization as the beneficiary of your retirement plan at your death, the assets may be subject to both income and estate taxes. Your heirs may be left with less than 25 cents on the dollar from your plan. In order to ensure that the assets in the plan are not subject to tax, the charitable designation must be made on the beneficiary designation form provided by the plan administrator.
  • Transfer the plan assets to a testamentary charitable remainder trust
    Designating a charitable remainder trust as the beneficiary of your IRA or other qualified retirement plan assets at death allows you to support your family and Elim Park. Assets at your death are distributed to a trust, which pays an income for life to the individuals you name. At the end of the last beneficiary's life, the remainder would pass to Elim Park. This usually provides a partial estate tax deduction, depending on the age of the individual beneficiary, eliminates income tax on distributions of the plan, and ensures a future gift to Elim Park.

Gifts of Life Insurance

Many people overlook the value of an insurance policy that they no longer need, but would be included in their estate. The large cash value resulting from a relatively small premium makes a life insurance policy an attractive planned gift.

A donor may name Elim Park owner and beneficiary of a life insurance policy and receive an income tax deduction. When you name Elim Park as the owner of a paid-up policy, the charitable deduction is generally for the policy's cash surrender value or net premiums paid on the policy. On a partially paid-up policy, contributions to Elim Park for future premium payments may be deducted as charitable gifts.

As with all financial decisions, a planned gift should be designed with care. Elim Park's professionals will work closely and confidentially with you and your advisors to ensure that your gift to Elim Park achieves your individual goals, and expresses your personal vision for our future.

For additional information or questions, please contact Carl Jahrstorfer at 203-272-3547 ext. 172, or email cjahrstorfer@elimpark.org.