Did you know that you can make gifts to St. Luke’s and also collect income from it or leave income for your family? The two giving vehicles below describe how.
A charitable remainder trust provides you or other named individuals income each year for a period not exceeding 20 years. At the end of the trust term (up to 20 years), the balance in the trust can go to St. Luke’s as a gift to ministry.
Each year, a CRT pays a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of each payment is redetermined annually. If the value of the trust increases, so do the payments. If the value decreases, however, so will the payments.
Two Examples of How This Works
As Income for You…
You want to make a gift to St. Luke’s but would also like more income in the future. You create a charitable remainder unitrust (CRT) with annual payments between 5% to 6.5% of the fair market value of the trust assets as revalued annually. Each year the principal is invested by the LCMS Foundation (a St. Luke’s partner ministry). You fund the trust with assets valued at $300,000.
You receive an estimated $25,000 the first year from the CRT. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. You are eligible for a federal income tax charitable deduction for the year you establish the trust.
At the end of the trust term (up to 20 years), the corpus left in the trust at that time will go to St. Luke’s as a ministry gift.
As Income for Heirs…
Through our Transfer the Blessings Estate Planning Ministry, you can make similar arrangements as above for your heirs and designated ministries to receive annual payments after your passing. The CRT is funded out of your final estate proceeds. Your heirs and/or designated ministries would receive income every year for the length of the trust term (typically 20 years).
This approach is called a POCRUT (or a pour over charitable remainder unitrust) and is a great way for your estate and heirs to reduce their taxes from inheritance – and possibly pay no income tax at all!
A POCRUT is almost like ‘giving twice’ because funds are invested over a long period (up to 20 years). You ‘give’ to your heirs each year for the length of the trust. Next, at the end of the trust’s life, any remaining balance is given to God’s work. Your heirs and ministry are both blessed by this long-term strategy.
*A CGA differs from a CRT based on IRS rules, gift amount deductibility, revocability options, and payout rates. For info about a charitable gift annuity, see above.
In partnership with the LCMS Foundation, St. Luke’s can help you create a charitable gift annuity which is a basic contract between you and the LCMS Foundation. In this agreement, arrange to make a gift to St. Luke’s and, in return, you (and/or someone else, if you wish) receive a fixed amount each year for the rest of your life. Minimum investment amount in a CGA is $5,000.
This is a way for you to support St. Luke’s and feel confident that you have a dependable income stream in retirement.
This type of donation gives in two ways. It supplies income, and it provides St. Luke’s with the resources to continue God’s work. We partner together to expand His kingdom! You may also qualify for a series of tax benefits, including a federal income tax charitable deduction when you itemize.
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options by contacting our Stewardship Director, Doug Taylor, at email@example.com or 407-365-3408
CGA Example – How It Works
Michael, 56, and Mary, 55, want to contribute to St. Luke’s but they also want to ensure that they have dependable income during their retirement years. They establish a $50,000 charitable gift annuity through the LCMS Foundation (a St. Luke’s partner ministry).
Based on their age, they will receive a payment rate of between 3.0% and 5.0%* for the remainder of their lives. They are also eligible for a federal income tax deduction when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support God’s work at St. Luke’s.
*A CGA differs from a CRT based on IRS rules, gift amount deductibility, revocability options and payout rates. For info about a charitable remainder trust, click below.