Gifts With Tax Benefts
Here at Lambda Legal, we offer a variety of planned giving vehicles, making it easy to find tax-wise ways to benefit you and your family while supporting our mission for full equality for the LGBT community and those with living with HIV. Navigate through the links below
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.
Frequently Asked Questions
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.
Making a Gift of Life Insurance
For many people, life insurance policies are less important later in life when financial obligations such as the cost of raising and educating children and paying a mortgage tend to decrease. This makes a gift of life insurance an excellent planned giving vehicle. It enables supporters to leverage relatively modest premium payments into a significant contribution toward Lambda Legal’s fight for equality.
To make a gift of life insurance to Lambda Legal, you can name Lambda Legal the beneficiary of all, or a portion, of the proceeds of your policy or you can transfer ownership of the policy to Lambda Legal outright. You can also name Lambda Legal as the contingent beneficiary of your policy or name a charitable remainder trust the beneficiary.
TAX BENEFITS: When you donate your life insurance policy to Lambda Legal you may be able to claim an immediate income tax deduction for the current value of the policy and you may be able to deduct your future premium payments.
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].
Wills & Bequests
Many of our supporters have chosen to include Lambda Legal in their will as a way of making a meaningful impact on the fight for equality without having to give up crucial assets needed during their lifetimes.
A charitable bequest to Lambda Legal made in your will can take many forms. You can make a bequest to Lambda Legal by designating a specific sum of money or property/real estate, a percentage of your estate, or the remainder of your estate after other beneficiaries receive the portion you designate. Through a contingent bequest, you can make Lambda Legal the beneficiary of your estate if your partner or other beneficiary passes away before you. You can also create a charitable trust through your will that will benefit individuals you choose during their lifetimes with the remainder after they die passing to Lambda Legal.
While you receive no immediate tax benefits from a bequest to Lambda Legal, every dollar contributed is deductible for estate tax purposes, relieving your partner and loved ones of added estate tax burdens.
HOW TO INCLUDE LAMBDA LEGAL IN YOUR WILL
To make a bequest to Lambda Legal you will need to use the correct language in your will: “I hereby give and bequeath [cash amount, percentage amount, or property you are giving] to Lambda Legal Defense and Education Fund, Inc., New York, New York, for its general purposes.” To ensure that your wishes are followed exactly, we suggest including Lambda Legal’s full name and address in your will:
Lambda Legal Defense and Education Fund, Inc.
120 Wall Street, 19th Floor
New York, NY 10005
501(c)(3) Tax ID number: 23-7395681
This information is not intended as legal advice. For more information about planned giving vehicles and making a legacy 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].