What is a Charitable Gift Annuity?
A Charitable Gift Annuity (CGA) is a contract under which a charity, in return for a transfer of cash, marketable securities, or other property, agrees to pay a fixed sum of money to the donor (annuitant) for a period measured by one or two lives. These payments are fixed and unchanged for the term of the contract.
Immediate Gift Annuity-The annuitant starts receiving payments at the end of the payment period immediately following the gift.
Deferred Gift Annuity-The annuitant starts receiving payments at a future time. The date chosen by the donor must be more than one year after the date of the contribution.
Types
of Agreements
Single Life Agreement-Pays only one person for his or her lifetime.
Two Lives in Succession Agreement-Pays person "A" first. If person "B" survives person "A," then agreement pays person "B."
Joint Survivor Agreement-Pays two persons simultaneously.
National Federation of the Blind Gift Annuity Program
Annuitant(s) must be 65 years or older
Minimum amount of Gift Annuity Agreement - $25,000
About Your Will
Perhaps the most important document to you and your loved ones is your will. This document provides for a clear and specific understanding as to how you want to provide for your loved ones and how to transfer your assets.
The Four "P's" of Estate Planning
A wonderful way to organize your plan and save costs:
People: List the people and charitable organizations that are important to you and how you want to provide for them.
Properties: List the properties that comprise your estate. Include cash, securities, real estate, life insurance, retirement plan, etc.
Plan: Design a plan for your family and charitable interests. Consult your attorney to draw the perfect plan.
Planners: Consult professionals who will help you put your plan in proper legal
form. Your attorney, Investment Advisor, Trust Officer, and the National Federation
of the Blind Planned Giving officer.
Giving
through Your Will
Over the years you have provided to the National Federation of the Blind, and
for that we thank you. Please consider your continued support to our mission
by making a gift through your will.
How Can I Give through My Will?
- Designate a percentage of your estate to the NFB.
- Designate a specific amount to the NFB.
- Designate the remainder of your estate to the NFB, after providing for your
loved ones.
- Include a gift in your will to the NFB that will provide a life income for
your loved ones.
Income generating gifts allow the donor to make a gift of cash or other property in trust now and receive income for life. Among these income-generating gifts are Charitable Remainder Trusts and Charitable Lead Trusts.
The Charitable Remainder Trust (CRT)
One of the most popular forms of income-generating gifts. A Charitable Remainder Trust is an irrevocable trust that benefits the donor or other individuals named by the donor for a term of years or a lifetime. Upon termination, the remaining assets pass on to the National Federation of the Blind (NFB.)
Facts about A Charitable Remainder Trust
- It must be an irrevocable trust.
- It must provide for amendment to conform with IRS Code and Treasury regulations.
- It must provide for a specific distribution, at least annually, to one or more beneficiaries, at least one of which is not a charity.
- It must continue for a period of time measured by a life (or lives), a specific number of years (not more than 20), or a combination of both.
Types of Charitable Remainder Trusts
- Charitable Remainder Unitrust (CRUT)-Income payment to the donor is structured as a fixed percentage (%) of the annual fair market value of the trust. Additions to the trust are allowed.
- Charitable Remainder Annuity Trust (CRAT)-Income payment is structured as a fixed percentage (%) of the initial fair market value of the trust. Additions to the trust are not allowed.
Charitable Lead Trust (CLT)
A Charitable Lead Trust is the opposite of the Charitable Remainder Trust. The CLT pays an income to the National Federation of the Blind and distributes the remainder to the beneficiaries.
Facts about A Charitable Lead Trust:
- It is a transfer of guaranteed income interest to the National Federation of the Blind.
- It provides for a guaranteed, specific distribution at least annually to the National Federation of the Blind.
- It continues the distribution for a term measured by an ascertainable life or lives, a specific number of years, or a combination of both.
- It distributes the trust property at the end of the term to the beneficiaries.
Gifts of life insurance can be a valuable part of any charitable giving plan. It is an attractive gift to donors because it allows the donors to ensure that the National Federation of the Blind (NFB) will receive a death benefit that is larger than any gift they could make during life.
Ways To Make a Gift of Life Insurance To a Charity
1. Transfer of a current policy-Donor could transfer ownership rights to the NFB when:
- A policy is no longer critical
- A policy is no longer needed for its original purpose
- A policy does not produce income
In order to receive a charitable deduction for a gift of life insurance, the donor must:
- Transfer ownership rights to the NFB
- Cannot be able to borrow funds from the policy
- Cannot retain the right to change beneficiaries
2. Purchase a new policy-Donor may create a new life insurance policy with the NFB as beneficiary
3. Life insurance policy with cash value can be reduced to cash-The donor may then contribute the cash value in exchange for a Charitable Gift Annuity or Charitable Remainder Trust.
Please Note:
- The transfer of an existing policy must be made through the issuing life insurance company.
- To transfer the interest, the donor must complete the forms provided by the life insurance company.
- A life insurance gift is considered complete on the date the ownership rights are transferred to the National Federation of the Blind.
You Can Use Your Gift of Life Insurance To:
- Fund an educational program or project
- Assist with a capital project
- Make a gift to the NFB Jernigan Institute Imagination Fund
- Honor the memory of a loved one
YES! And we hope that you will consider the National Federation of the Blind in your estate planning. All you have to do is to place the following language in your will:
"I give, devise, and bequeath unto the National Federation of the Blind, 1800 Johnson Street, Baltimore, Maryland 21230, a District of Columbia nonprofit corporation, the sum of $ _____________ (or " _________ percent of my net estate" or "the following stocks and bonds: _______________________________________," ) to be used for its worthy purposes on behalf of blind persons."
If you care to let us know that you have made a gift to the National Federation of the Blind in your will, we can properly thank you.
The National Federation of the Blind holds 501(c)(3) tax-exempt status with the Internal Revenue Service.
Note: Making a charitable gift can be one of the most enjoyable experiences in life. Here are some points to consider before you make your gift to the National Federation of the Blind.
- Will my gift serve to advance the mission of the NFB?
- Am I giving the most appropriate asset?
- Have I selected the best way to make my gift?
- Have I considered the tax consequences of my gift?
- Have I sought counsel from a competent advisor?
- Have I talked to the Planned Giving officer about my gift?
Donors can expect some or all of the following benefits by making a gift to the NFB:
- Helping the NFB fulfill its mission
- Income tax savings through a charitable deduction
- Capital gain tax savings on contribution of certain appreciated gifts
- Retained payments for the life of a donor and/or other beneficiaries
- Elimination of federal estate tax in certain situations
- Reduced estate settlement cost
Your Gift Will...
- Make science and math a real possibility for blind children
- Provide hope for seniors losing their vision
- Help state affiliates and local chapters promote programs and provide information that will educate the blind
- Advance technology helpful to the blind
- Create a state-of-the-art library on blindness
- Train and inspire professionals working with the blind
- Provide parents with critical information helpful to their blind children
- Mentor blind people trying to find jobs
- Guarantee that you are part of the NFB dream!
Note: Making a charitable contribution is an art, and like any form of art, the creative process needs to adapt to the needs and wishes of the donor. Each year, millions of Americans contribute their time, talent, and treasure to charitable organizations. Because of this, the nation's tax laws recognize the role of charitable organizations in meeting public needs, and as a result, incentives are provided to encourage charitable gifts.
Planned Giving through Income-Generating Gifts
- Charitable Gift Annuities
- Charitable Remainder Unitrusts (CRUTs)
- Charitable Remainder Annuity Trusts (CRATs)
Planned Giving through Wills
Planned Giving through Life Insurance
Planned Giving - Other Instruments
Read more about these various ways of donating to the NFB in these colorful .PDF brochures
Charitable Gift Annunities
Brochure
Gifts of Life Insurance
Brochure
Income Generating Gifts
Brochure
Step Down Inserts
Will & Charitable
Interests Brochure
For more information please contact us.
or call Izzy Menchero, Director of Outreach Programs
at 410-659-9314, ext. 2408
imenchero@nfb.org