How Giving Back Can Help You
What if you could lower your electric bills by turning on the lights in your home? While some things may seem at first glance to be counter-intuitive, a charitable gift can benefit you in surprising and unexpected ways.
What is a charitable gift annuity?
A charitable gift annuity (or CGA) is a simple arrangement in which we promise to make payments to you in exchange for your gift to us of cash, CDs or an appreciated asset. No matter what happens with the economy, your payments are secure and fixed at a rate that will never change. You will receive a tax-saving charitable deduction, and a portion of your payments could be tax free.
How does a charitable remainder trust work?
A charitable remainder trust (or CRT) is similar to a CGA but offers you more options. You can receive payments for your lifetime or up to 20 years. The payment amount may vary with the trust’s performance or be fixed similar
to a CGA. It’s possible for you to be involved in selecting the trust investments to maximize trust returns.
Lifetime payments and tax benefits
In addition to lifetime payments, both plans provide the following tax benefits:
An income tax deduction in the year you make your gift.
Potentially lower estate taxes (if your estate is taxable).
Capital gains avoidance if you give appreciated assets.
With the CGA, you can have the fulfillment that comes with supporting a cause you care about while achieving your personal and financial goals. Call 732-922-9802 x2128 or e-mail Foundation@UMCommunities.org to learn more.