A CGA is a good giving option that involves a charitable gift and an annuity. You make the gift to Phoenix Seminary and then you receive fixed annuity payments each year for the rest of your life. CGAs are a good giving option for you if you want to make a large gift while still protecting your income. You may want to ensure the future of your retirement funds, or your children’s as well. Or you may have already retired and want to enjoy a yearly income while still making a significant impact for Phoenix Seminary.
Giving appreciated stock is an excellent way to provide funding for Phoenix Seminary and advance our mission while avoiding capital gains taxes for you as a donor.
Occasionally a donor will, as part of their estate plan, leave a real asset to a nonprofit. This might be a house, vacation home, art collection, or any other physical object or interest. Typically these function similarly to simple bequests of assets, except that the nonprofit must first liquidate the asset (e.g., selling the house) so that the proceeds can be used to serve the mission of the nonprofit. In rare cases, the donor may have placed restrictions that prevent the outright sale of the items, in which case the nonprofit must make a judgment about whether to accept the gift. Having board-approved gift acceptance policies on hand can help nonprofits navigate these decisions.
There are several types of trusts, and the choice of which one to set up will depend chiefly on the needs of the donor to provide for other beneficiaries and the type of income they are trying to shield from taxes (e.g., capital gains from stocks, the future appreciation of a home in a rapidly expanding city, etc.). All charitable trusts are irrevocable.
Charitable lead trusts give Phoenix Seminary a fixed payout annually, with the donor or the donor’s beneficiary receiving any remaining balance after the specified period. A charitable lead trust can provide either a fixed payout as a percentage of the assets first placed in the trust (an annuity trust) or a fixed percentage of the fair market value of assets at the conclusion of each year (a unitrust).
Charitable remainder trusts are the inverse of CLTs: the trust gives the donor or Phoenix Seminary a fixed payout annually, while Phoenix Seminary receives any remaining balance after the specified period. The two types of CRTs are the CRAT—a charitable remainder annuity trust, which provides a fixed payout as a percentage of the assets first placed in the trust—and the CRUT—a charitable remainder unitrust, which provides a fixed percentage of the fair market value of assets at the conclusion of each year.