Charitable Gift Annuity
A Charitable Gift Annuity is a contract between you and the College. You transfer property, cash or securities - preferably appreciated - in exchange for a fixed annual dollar payment for your lifetime. The annual payout rate is determined by your age and if there will be more than one income beneficiary. At Einstein we follow the national tables provided by the American Council on Gift Annuities in setting payout rates. The income stream can begin immediately or can be deferred. The deferral period must be at least one year. A Charitable Gift Annuity is a wonderful way to make an important gift to Einstein while increasing the value of the income you now receive from the transferred assets, while also receiving a meaningful income tax deduction.
Charitable Remainder Trusts
There are several variations of charitable remainder trusts. We will mention the two primary forms here: the Charitable Remainder Unitrust and the Charitable Remainder Annuity Trust.
A Charitable Remainder Unitrust is a separately managed charitable trust that pays you, and/or your spouse or other beneficiaries a percentage of the principal, revalued annually, for your lifetime. You receive a charitable income tax deduction for a portion of any gift you make to the trust. After the Unitrust terminates, the accumulated principal - the remainder interest - comes to Einstein for its general purposes or to support a specific purpose which is outlined in the trust document.
A Charitable Remainder Annuity Trust is also a separately managed charitable trust that pays you, and/or your spouse or other beneficiaries a fixed income for your and/or their lifetimes. You receive a charitable income tax deduction for the gift portion of the assets placed into the trust. Note, that unlike the Unitrust, the payout percentage and payout amount are fixed at the outset of the Annuity Trust. Once the Annuity Trust terminates, the accumulated principal is received by Einstein to be applied to the College's general purposes or for a project that has been specified in the trust agreement.
Please note that both the Unitrust and the Annuity Trust are irrevocable agreements. The same is true for Charitable Gift Annuities.