Life income gifts serve a dual purpose: They provide philanthropic support for Duke while also providing both a charitable income tax deduction and an income stream to you and/or your loved ones.
These gift vehicles can provide income benefits comparable to—or in some cases exceeding—those that might be earned in non-charitable vehicles. Many donors establish life income gifts with assets that are producing a very small amount of income, such as cash or appreciated stocks that do not earn dividends.
Duke offers four basic types of life income gifts:
- A charitable gift annuity provides a fixed income for life. (gifts of $10,000+)
- A charitable remainder unitrust makes payments that fluctuate with the market and therefore may provide a hedge against inflation. (gifts of $100,000+)
- A charitable remainder annuity trust provides a fixed income like a gift annuity, but the tax treatment of the payout may be preferable for donors giving highly appreciated assets. (gifts of $100,000+)
- A pooled income fund combines gifts from many donors into a common investment pool with income distributed on a pro-rata basis. (gifts of $5,000 < $10,000)
The first two options are by far the most common types of life income gifts. Some donors establish life income gifts through their wills as a means of providing a life income to a loved one.