Gifts That Pay YOU

Did you know that you can make a gift that pays you income for life AND gives you a current income tax deduction in exchange for a contribution to benefit MNHS? You can do that with a “life-income” gift: a Charitable Gift Annuity (CGA) or a Charitable Remainder Trust (CRT).

Reliable Fixed Income for Life

Charitable Gift Annuities are among the most popular planned gift options, and are offered by MNHS. Gift annuities provide you and/or a loved one with a safe fixed income for life, as well as significant tax benefits. The stability of a CGA is very attractive to many people, especially in an uncertain economy.

Here are some features and other things to know:

  • Annuitants receive a fixed income for life, paid in monthly, quarterly, or annual installments.
  • The annuity is backed by all of the assets of the charity, not just the contributed amount.
  • Donors receive an immediate charitable income tax deduction for a portion of the contributed amount. Additional tax savings are possible if appreciated stock or other property is contributed.
  • The higher the annuitant’s age(s), the higher the payout.
  • When the annuity ends, any remaining funds in the account will support the MNHS programs or sites that are most important to you.

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A More Flexible Option: Charitable Remainder Trusts

Like a CGA, a Charitable Remainder Trust provides income for a life or lives (or a term of years), a partial income tax deduction, and potential bypass of capital gains, but offers greater flexibility than a gift annuity.

With a CRT:

  • The donor contributes property to a trustee to administer a trust to provide income to the donor or other loved one(s) designated by the donor.
  • At the end of the trust term, the remainder is distributed to MNHS.
  • The donor chooses the payout, preferably 5% to 6%.
  • Charitable remainder trusts come in two main types: charitable remainder annuity trusts (CRATs) and charitable remainder unitrusts (CRUTs).

CRUTs are workhorse giving tools that can be used to accomplish multiple goals. Rather than a fixed dollar amount, the distribution from a CRUT is a fixed percentage—the unitrust amount—of the trust assets, revalued each year. As a benefit, donors or other income beneficiaries can enjoy increased payments as trust assets grow (but also have some downside risk if investments perform poorly).

CRUTs can be funded with marketable securities or cash, and they can also be the vehicle of choice for converting other assets into an income stream for the donor and/or other loved ones. Some of the types of property other than cash or stock that can be used to fund a CRUT include:

  • appreciated real estate
  • closely-held business interests
  • fine art
  • high-value musical instruments

Piano

Why MNHS Donors Appreciate Life-Income Gifts

There are several reasons why donors love CGAs and CRTs, such as:

  • Choice of:
    • Predictable income that does not fluctuate with the markets (CGA or CRAT); or
    • Variable income that can increase as the investments increase in value (CRUT)
  • A meaningful way to support MNHS during their lifetimes
  • The satisfaction of anticipating their gifts will ultimately strengthen MNHS
  • Potential tax advantages

A Thoughtful Option That Balances Generosity and Security

Many donors who have supported MNHS for years find that Charitable Remainder Trusts and Charitable Gift Annuities align well with both their financial goals and their passion for preserving Minnesota’s heritage. Both CRTs and CGAs allow donors to care for themselves and their loved ones while also investing in the future of MNHS. Everyone’s situation is different, and CGAs work better for some while CRTs work better for others. Talk with your professional advisors if you have questions about what could be best for you.

If you are interested in learning whether a Charitable Gift Annuity or a Charitable Remainder Trust could be a good fit for you, we would welcome the opportunity to talk. Please contact Jennifer Pogatchnik, VP for Advancement, at jennifer.pogatchnik@mnhs.org or 651.491.5684, to request a personalized illustration. Visit our main Planned Giving page to learn more.

Note: MNHS does not give legal, financial, or tax advice, and urges supporters to seek advice from their own professional advisors about how a particular idea may affect their specific circumstances.