Planned Giving: Life Income Gifts

You can make a gift to the Unitarian Universalist Association (UUA) that will pay you income for life, after which the remaining gift principal will be turned over to the UUA, your home congregation, or any other Unitarian Universalist (UU) organization, for any purpose you specify. A life income gift may be appropriate if you want to make a gift but need to retain income for yourself and/or loved ones. Giving highly appreciated securities may be especially attractive. A life income gift can reduce your capital gains taxes and increase your income.

There are two primary types of life income gifts...

1. Charitable Gift Annuities

A charitable gift annuity is an arrangement whereby you contribute cash or marketable securities in exchange for the Association's promise to pay one or two people a guaranteed income for life at a rate based on the age(s) of the annuitant(s). If you are planning for retirement or want to increase income, reduce capital gains taxes, secure a fixed income, and make a significant gift to the future of Unitarian Universalism, then this option may be right for you.

You may also delay receiving income for some period of time, thereby increasing the payments you receive. This can be a powerful tool for retirement planning, if you want to lock in a higher income for future years, when you need it most. “The longer you wait, the higher the rate!”

Charitable Gift Annuity donors are eligible for an income tax deduction in the year the gift is made. They also receive favorable tax treatment on the annual income. A gift of $10,000 or more will establish a charitable gift annuity for you and your loved ones to enjoy. Read more about charitable gift annuities.

2. Charitable Remainder Trust

A charitable remainder trust (CRT) allows you to retain income for an unlimited number of individuals, provide specialized management of your gift, and it may increase your capacity to make gifts to your favorite charities.

A charitable remainder trust is a separately invested irrevocable trust you create by designating a person or persons to receive income payments of at least 5% annually. Trusts can accept a wide range of assets, including cash, securities, closely held stock, or real property. At the conclusion of the income payments, the trust principal is distributed to the named charities.

A charitable remainder trust involves administrative and start-up fees. Because of the increased flexibility of this gift option, it can also be somewhat complicated. Therefore, trusts must have a minimum value of $100,000.

Custodian

The UUA Charitable Gift Annuity fund is held in trust by State Street Global Advisors, in Boston. This is a segregated trust account, held separately from other UUA assets.

Gifts to Benefit Your Congregation or UU Entity

The UUA operates the annuity fund as a free service to our congregations. This means that individuals may make gifts to the fund and name their home congregation as the sole charitable beneficiary. The Association acts as trustee of this gift, and all others in the funds, and charges no fees to the congregation.