Chosen People Ministries’ life income plans provide you with a variety of opportunities to help bring the Gospel to Jewish people while receiving payments for life and valuable tax savings. Chosen People Ministries offers a choice of life income plans which can provide you with fixed or variable payments.
The theory of such a gift is simple. You make an irrevocable contribution of cash or securities valued at $10,000 or more and, in return, receive payments for life or a term of years. After your death the remaining principal will pass to Chosen People Ministries to be used as you have instructed.
Appreciated securities are an excellent way of funding these gifts, often unlocking greater income while eliminating, or at least reducing, capital gains tax.
Why Should You Make a Life Income Gift?
By making a life income gift to Chosen People Ministries, you can have the satisfaction of making a gift now without losing the income from the asset you donate. In addition, you:
- will receive an immediate charitable income tax deduction
- will avoid the capital gains tax on transferring appreciated assets
- will have your assets managed by a professional at no cost to you
- can provide an assured income to a loved one for his or her lifetime
- may actually increase your own income and enhance your retirement plan
- may be able to reduce your estate taxes
- may be able to make a larger gift to Chosen People Ministries than would otherwise have been possible
- may provide a hedge against inflation with a plan that allows your payments to fluctuate
What is a Life Income Gift?
There are a number of different life income gift types. While each has its own special features, a basic concept applies to all – you make a gift to Chosen People Ministries but continue to receive the income from what you donate.
When you make the gift, you decide whom you would like to receive the income payments (the beneficiary). It can be you, you and your spouse or another relative or friend. Income will be paid to the beneficiaries for their lifetimes, or you can specify a fixed number of years. On the death of the last beneficiary, your gift becomes available to Chosen People Ministries to use where it is most needed or as specified by you at the time you make your gift.
Some types of life income arrangements available through Chosen People Ministries are:
Chosen People Ministries Gift Annuity
A Chosen People Ministries Gift Annuity is a contract between you and Chosen People Ministries. You transfer cash, stocks, bonds, or real property to Chosen People Ministries and receive guaranteed payments for the rest of your life. The amount of each payment is determined by your age at the time the annuity is initially funded. These payments will never change. Payments can begin immediately or be deferred until the future to supplement a retirement plan. You receive an immediate charitable income tax deduction for the gift portion of the annuity and part of each payment is a tax-free return of principal
By setting up a Trust, you can give to Chosen People Ministries and provide for your family at the same time. A trust can provide for your children, grandchildren or other relatives, with the remainder divided by any number of charities; or a trust can provide for charity for a number of years or a lifetime, and then go to any number of heirs or beneficiaries.
Which Asset is Best for a Life Income Gift?
While almost any asset may be used to fund a life income gift, the best is a highly appreciated, low-yielding asset. By donating an appreciated asset, you avoid paying the capital gains tax for which you would be liable if you were to sell the asset.
Many assets that are highly appreciated do not yield a particularly high income. If you donate that asset through a life income arrangement, we can sell it and invest the proceeds in a higher yielding asset. For example, you may own stock that has increased significantly in value since you acquired it but is only paying you income at the rate of 2% or 4% per year. When you donate the asset under a life income arrangement, we can sell the stock and invest in securities that pay out at a considerably higher rate. You would not be able to accomplish this increase in income yourself without paying a tax on the capital gain.
The gift of your home is a unique and meaningful way to support Chosen People Ministries. You can enjoy the satisfaction of making such a gift during your lifetime-without affecting your current lifestyle.
Depending on the type and size of the asset you plan to donate and your other financial objectives, one of these vehicles is likely to be particularly well suited to you. We can help you identify which vehicle is best.
How can I get more information?
To learn more about how these giving opportunities can work to your advantage, please e-mail us, call our toll free hotline at 212-223-2252, or write to us at Chosen People Ministries, 241 E. 51st Street, New York, NY 10022.