Gifts That Create Income
Gifts that create income are an excellent and flexible way to make an immediate impact on our work. Charitable Gift Annuities and Charitable Trusts allow you to make a sizable investment in our community’s future without disrupting the present.
Charitable Gift Annuities
Charitable gift annuities are on of Lambda Legal’s most popular planned giving vehicles. A charitable gift annuity (CGA) is a contract under which Lambda Legal agrees to make fixed payments for life to you and/or a designated beneficiary in exchange for an irrevocable gift of $10,000 or more. Charitable gift annuities are an attractive giving option for many of our supports who are 55 and older because they enable contributors to maintain income needed for living expenses after retirement and fulfill their desire to help create a world without fear or prejudice.
BENEFITS OF A CHARITABLE GIFT ANNUITY:
-A reliable, partially tax-free stream of income beginning as early as age 60 to supplement retirement.
-An immediate charitable income tax deduction based on Lambda Legal’s remained interest in the annuity (calculated based on the age of beneficiary[ies]).
-Deferment of capital gains taxes when the CGA is funded with appreciated securities.
For many Lambda Legal supporters, CGAs also offer the added satisfaction of making a significant contribution toward Lambda Legal’s fight for the full civil rights of LGBT people and those with HIV.
Lambda Legal Offers Several Types of CGAs:
Through this annuity, only you or your designated beneficiary (minimum age: 60) will receive the income from your contribution. The rate of return on this type of CGA is high than if two people are designated to receive income.
Through this annuity, you can provide income both for yourself and for another beneficiary, such as your partner or spouse. The age of both recipients (minimum age: 60) will be used to determine your rate of return and the portion of your gift that is tax deductible.
An ideal choice for younger donors or those who have not yet retired, a deferred CGA allows you to defer receipt of your payments on your one-life or two-life CGA after your initial contribution. You and/or your beneficiaries must be at least 55 years old and payments must be deferred until at least age 60.
At what age can I establish a CGA with Lambda Legal?
You can establish a deferred CGA at age 55 and an immediate CGA at age 60
At what age will I begin to receive payments from my CGA?
For immediate payment CGAs, payments begin in the year you establish the CGA. For deferred CGAs you can determine the age your payments will begin (age 60 or older).
Who can receive payments from a CGA I establish?
You can name anyone- yourself, your partner, your spouse, a family member or loved one-as the beneficiary of your CGA so long as they meet the minimum age requirements.
What will my rate be on the immediate annuity?
Annual payment rates range from 4.4 percent to 9.0 percent, depending on the age of the beneficiary.
What tax benefits will I receive from my CGA?
A CGA with Lambda Legal guarantees you a reliable stream of income during your lifetime and ensures that 100 percent of the remaining principal will go toward the fight for equality. You also receive an immediate tax deduction based on Lambda Legal’s remained interest in the annuity and part of your annuity income is tax-free. If you fund an annuity with appreciated securities, you can defer capital gains taxes as well.
What is the minimum gift amount to establish a CGA?
You can establish a CGA with a minimum irrevocable gift of $10,000.
How often will I receive payments?
You can choose to receive quarterly, semi-quarterly or annual payments.
Are my payments guaranteed?
Yes. In exchange for an irrevocable gift of $10,000 or more, you will receive guaranteed, fixed annual payments from Lambda Legal for life.
How will my CGA help Lambda Legal?
Your CGA not only helps you by providing returns that are often greater than other investment options, but upon your death the principal from your CGA will pass to Lambda Legal, making a significant contribution to our work and leaving your own legacy for equality.
Click here to download Lambda Legal’s Guardian Society Update regarding our CGA program
This information is not intended as legal advice. For more information about life-planning vehicles and making a planned gift to Lambda Legal, be sure to consult with a professional who is familiar with the laws in your state. For help finding a professional in your area, contract our Senior Director of Legacy Giving and Member Services, Thai Pham, at (212) 809-8585 or TPham @lambdalegal.org.
Charitable Remainder Trusts
Charitable remainder trusts offer supporters a way to provide for their loved ones immediately while also supporting Lambda Legal. Charitable remainder trusts are created by transferring assets to a trust, which then provides income to your partner, children, a friend, or even yourself over a period of time. After that period, the principal passes to Lambda Legal.
TAX BENEFITS: When you create a charitable remainder trust, you receive an immediate tax deduction based on Lambda Legal’s remainder interest in the trust and decrease estate taxes. If you create a charitable remainder trust with an appreciated asset, you may also avoid capital gains taxes.
Charitable Lead Trusts
A charitable lead trust functions like a mirror image of a charitable remainder trust. You create a charitable lead trust by transferring assets to the trust. The trust then pays Lambda Legal an annual income for a fixed number of years, after which the principal from the trust reverts to you, your partner, children or other beneficiary(ies) you name.
TAX BENEFITS: When you create a charitable lead trust, you receive an immediate income tax deduction based on cumulative figure payments to Lambda Legal, a possible gift or estate tax deduction, a possible reduction in the generation-skipping transfer tax and you can preserve your inheritance for your heirs.
This information is not intended as legal advice. For more information about life-planning vehicles and making a planned gift to Lambda Legal, be sure to consult with a professional who is familiar with the laws in your state. For help finding a professional in your area, contact our Senior Director of Legacy Giving and Member Services, Thai Pham, at 212-809-8585 or [email protected].