Charitable remainder trusts
A community foundation like CACF can administer charitable remainder unitrusts and annuity trusts, which both pay lifetime income to you or other named beneficiaries.
Establishing a trust is simple. Cash or property is transferred to the trust. Income beneficiaries receive annually an amount equal to a fixed percentage of the trust's fair market value (unitrust) or a fixed dollar amount (annuity trust). Upon termination of the trust, the assets are transferred to your named charitable fund to support your individual or personal charitable giving goals.
Charitable gift annuities
A charitable gift annuity through the Charlottesville Area Community Foundation is a way for you to receive a guaranteed income and an immediate income tax deduction, while at the same time leaving a legacy to the charitable cause of your choice.
Through a charitable gift annuity, you receive a fixed stream of income for life. After paying the lifetime annuity to you and your spouse, the remaining principal is transferred to your named charitable fund to accomplish your specific charitable goals. Our payments to you are based on your age: the older you are, the higher the rate. If the annuity is for you and your spouse, the calculation is based on your joint ages. If you don't need the income now, you can use our deferred plan and receive the income-tax deduction now, but begin receiving payments when you reach a specific age. This setup can be an excellent complement to your existing retirement plan.
The tax advantages of both a current and deferred annuity are twofold. First, you receive an immediate income tax charitable deduction when you create your annuity. This is based on your age and annuity payout rate. Second, a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the net income you receive.
If you have questions about life income plans, please contact us for more information.
We are grateful to the following donors, who have established life income gifts naming CACF as beneficiary:
Arthur G. and Penny Kiser Charitable Remainder Trust
Ellen Roberts Susi Charitable Remainder Unitrust
Winfield Charitable Gift Annuity