Planned Giving — Life Income Gifts

You can make a gift to the 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 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 esepcially attractive. A life income gift can reduce your capital gains taxes and increase your income.

There are Three 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 $5,000 or more will establish a charitable gift annuity for you and your loved ones to enjoy.

• Online Gift Calculator
• More info on Charitable Gift Annuities
• Charitable Gift Annuity Confidential Reply Form
• Read about how a donor in California set up her Charitable Gift Annuity

The pooled income fund combines and invests your gift of cash or marketable securities (excluding tax exempt bonds) with the gifts of others and pays participants aproportionate share of the fund's actual quarterly interest and dividend income. Payments vary and they are fully taxable. Our fund has recently returned an average 5.15%. If bond rates increase, the payout to pooled income fund beneficiaries will rise.

Donors may claim a charitable income tax deduction for a portion of a pooled income fund gift, and usually avoid all capital gains associated with the gifted asset. With a minimum initial contribution of $5,000, subsequent contributions may be as low as $1,000. A pooled income gift may be particularly appropriate if you anticipate making additional life income gifts.

• Online Gift Calculator
• More info on the Pooled Income Fund
• Pooled Income Fund Confidential Reply Form

3. 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.

• Read about a woman in California whose CRT reflected her values
• Read about a donor in Maine who set up a CRT to benefit a Gay, Lesbian, Bisexual and Transgendered programs
• Read about how a former member of Liberal Religious Youth set up his CRT to benefit youth programs

The UUA Pooled Income Fund and Charitable Gift Annuity funds, which you can read about below, are both held in trust by State Street Global Advisors, in Boston. These are segregated trust accounts, held separately from other UUA assets. Further, the UUA operates these funds as a free service to our congregations. This means that individuals may make gifts to either 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.

Unitarian Universalist Association
25 Beacon St. | Boston, MA 02108 | 617-742-2100