A Charitable Gift Annuity is when a donor gives a sum of money to STCH Ministries in return for an agreement with STCH Ministries to pay an annuity for life to one or two lives. Annuity rates are determined by the American Council on Gift Annuities. Types of Charitable Gift Annuities include Immediate, Deferred, and Flexible Deferred plans.
Planned Giving is when a donor leaves money or assets to a nonprofit at his or her death. It can also be a way to invest money so that the donor receives benefits during his or her lifetime and then bequeaths the remaining funds to the nonprofit.
STCH Ministries wants to assist every donor in fulfilling their mission of giving to our ministries. Planned Gifts offer a great way to give to an organization while enjoying various tax benefits.
There are many ways you can bless children and families through STCH Ministries. You can reach us at 361.375.2417 or email to learn more about the options listed below.
ADVANTAGES: PLANNED GIVING ALLOWS THE DONOR TO
- Make significant donations to charity
- Increase current income for the donor or others
- Reduce the donor’s income tax
- Avoid capital gains tax
Everyone is encouraged to have a bequest or will. A Bequest is when a donor leaves assets in his/her will. The donor will receive a charitable estate tax deduction at his or her death when the gift is made to the charity.
A donor may make a gift of his or her personal residence or farm to charity and retain the right to live there for the remainder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor’s death, the charity can use or sell the property.
The Charitable Lead Trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to the charity during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim either a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts.
The Charitable Remainder Trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, the charity receives whatever amount is left in the trust. Charitable remainder unitrusts provide some flexibility in the distribution of income and thus can be helpful in retirement planning.