Give a gift that guarantees income while contributing to charitable organizations

    In my column on local philanthropy last month, I introduced legacy gifts — charitable donations that are designated to benefit organizations or causes after your lifetime. Many donors aren’t aware that they can leave a charitable legacy and benefit from an income stream during their life. The two most common types of charitable income tools are a charitable gift annuity and a charitable remainder trust. The Eastern Colorado Community Fund offers these planned giving options and many others to help you accomplish your charitable goals.
     A charitable gift annuity is a contract between you and a charity, whereby you make an irrevocable gift to the charity in exchange for a partial tax deduction and a lifetime stream of annual income from the charity. Gifts can be made to the ECCF in the form of cash, appreciated stocks, real estate and other assets. You receive an immediate tax deduction for the charitable portion of your gift, and you receive a stream of income that is fixed, regardless of market conditions. Upon your death, the ECCF fund you named as a beneficiary — either an existing fund or a new fund to be created in your name — will begin to support the organizations or causes of your choice.
     A charitable remainder trust is a similar charitable income tool that allows for greater customization through the creation of a trust. The primary difference is that gift annuities pay a guaranteed, fixed sum each year whereas charitable remainder trusts can provide a higher payout to the donor and, based on market conditions, can grow substantially over time to keep up with inflation.

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