About Charitable Remainder Trusts & Annuities

Charitable remainder trusts allow you to claim a charitable deduction in the year the gift is made, provide an income stream for yourself or someone you designate, remove assets from your taxable estate, and ultimately leave a significant gift to Native Plant Trust. Charitable trusts can be funded with gifts of securities, cash, or real estate. The asset becomes the property of the trust, and when the trust sells it, the asset is exempt from tax, offering options for portfolio diversification.

A charitable remainder trust allows you to name yourself, or someone else, to receive the potential income stream, either for a fixed term of years—currently no more than 20—or for the beneficiary's lifetime, and then Native Plant Trust to receive the remainder of the donated assets.

Please note: This is general information and is not presented as specific legal or tax advice.

Charitable gift annuities are among the most popular planned gifts and have been around for more than 100 years. This is a wonderful way to support Native Plant Trust’s mission while receiving tax benefits and annual tax-free income payments for yourself or a loved one. 

For example: a $10,000 gift* to a 72-year-old person would provide a payout of $540 a year, $391 of which would be tax-free. That person can be you or someone you designate. For a person aged 76, that annual payout would be $600, $448 of which would be tax-free. And, if the person is 80 at the time the gift is made, s/he would receive $680 every year, $524 of which would be tax-free.  (*These calculations assume the gift is made in cash.)

Currently, capital gains may be reduced dramatically and may be reported over a number of years so that those taxes are not due all at one time. In many cases, according to current tax law, a portion of each payment received is tax free. Our minimum annuity gift is $5,000. Contact us to see an example tailored to your circumstances.

You can choose from two versions of charitable gift annuities:

Charitable Gift Annuity: 
Provides a guaranteed, fixed income for you and/or another beneficiary. You and/or they must be at least 60 years of age at the date of the agreement. Rates offered are based on your specific age(s) at the time of the gift. Payments are made quarterly. Charitable Gift Annuities, currently, generate an immediate charitable income tax deduction. 

Deferred Charitable Gift Annuity:
Similar to the Charitable Gift Annuity, except that payments are deferred until you are aged 60 or older. Because income can be postponed, this is a popular vehicle for retirement planning or to save for an upcoming expense such as a child’s college education. Annuity payments are determined by your age at the time of the agreement and the date payments begin. The younger you are at the initiation of the agreement, and the longer the payments are postponed, the larger the fixed rate of return. Even though you do not start receiving payments until a pre-selected date in the future, a portion of your gift is, currently, immediately deductible for federal income tax purposes on an itemized return.

Please note: This is general information and is not presented as specific legal or tax advice.