Life Income Gifts

Funding Assets: cash or stock

Giving through a Charitable Gift Annuity allows you to arrange a generous gift to your community, while providing yourself a new income source you can count on for the rest of your life.

How it Works

• You make a gift to The Community Foundation - you can give cash, appreciated stocks or other assets.
• We set up a contract with you that combines annuity payments with a deferred charitable gift.
• You receive a stream of income that is fixed, regardless of market conditions.
• You also receive an immediate tax deduction for the charitable portion of your gift.
• Upon your death, we set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
• We handle all the administrative details - issuing annuity payments to you during your lifetime and, afterward, issuing grants to charities in the name of the fund.
• Your gift is placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift - and all future earnings from your gift - is a permanent source of community capital, helping to do good work forever.
• You may choose to become a member of the Nettie J. Dayton Circle, The Foundation's planned gift recognition program.

More Benefits

Income from your charitable gift annuity may add up to more than the interest and dividends you earned from holding the assets. You can use this income to supplement your own lifestyle, or that of someone else: a sibling, a dependent parent, or a friend. You or a loved one can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction. A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the American Council of Gift Annuities). The minimum contribution for the initial charitable gift annuity by a donor is $20,000. Additional gift annuities may be established for a lesser amount.

A charitable gift annuity reduces estate assets and may reduce estate taxes. Plus, it's easier to set up than a charitable trust and is backed by the general assets of The Community Foundation.

To learn more, contact Sharon Cappetta at scappetta@cfgnh.org or call 203-777-7071.

Funding Assets: cash, stock & other assets

Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, knowing that whatever remains will benefit your community.

How it works

• You transfer cash, appreciated stocks, real estate, or other assets into a trust.
• You receive an immediate charitable tax deduction for the charitable portion of your trust.
• The trust pays you or a beneficiary you designate regular income payments.
• Upon the beneficiary's death or after a defined period of years, the remaining assets in the trust transfer to The Community Foundation.
• We set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
• We handle all the administrative details after the fund is established, issuing grant awards to charities in the name of the fund.
• Your gift is placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift - and all future earnings from your gift - is a permanent source of community capital, helping to do good work forever.
• You may choose to become a member of the Nettie J. Dayton Circle, The Foundation's planned gift recognition program.

More Benefits

You may choose to receive a fixed income or one that changes with market conditions - income from the charitable remainder trust you establish may add up to more than the interest and dividends you earned from holding the assets. You can use it to supplement your own lifestyle or that of someone other than yourself: a sibling, a dependent parent, or a friend. You can pick one of these options for your charitable remainder trust:

• Annuity trust pays you a fixed dollar amount.
• Standard unitrust pays you an amount equal to a fixed percentage of the net fair market of the trust and is recalculated annually.
• Net income unitrust pays you the lesser of the fixed percentage specified by the trust agreement or actual trust income; some net income unitrusts allow you to make up deficiencies in previous years.
• Flip unitrust is a net income unitrust that converts to a standard unitrust upon a triggering event, such as the sale of an asset used to fund the trust.

To learn more, contact Sharon Cappetta at scappetta@cfgnh.org or call 203-777-7071.

Initial Gift Amount: $5,000
Type of Income: variable
Funding Assets: cash or stock

If you own highly appreciated stock, a Pooled Income Fund may be an effective way to achieve your charitable goals, increase your income and save on taxes.

How it Works

• You make a permanent gift of cash, appreciated stocks, property or other assets to the Pooled Income Fund held at Wells Fargo on behalf of The Community Foundation. You receive an immediate tax deduction for the charitable portion of your gift.
• During your lifetime, the pooled income fund provides you with a regular income stream from the fund.
• After your death, the remaining assets from your gift in the pooled income fund are transferred to The Community Foundation, where we set up a fund in your name, in the name of your family, or in honor of any other person or organization you choose. We handle the fund's administration and grantmaking.
• As we distribute grant awards in your fund's name, your gift becomes a lasting resource, benefiting the community for generations to come.

More Benefits

Pooled income funds are attractive to many donors. It is a simple process, gifts can be made in smaller amounts than a charitable trust, as assets are "pooled" with other contributions, and additional gifts can be made in future years. The minimum initial contribution to The Community Foundation's Pooled Income Fund is $5,000.
The income stream that you receive from the pooled income fund (particularly in cases of appreciated stock gifts) often ends up being higher than the interest and dividend payments would have been had you held on to the stock. By transferring the securities to The Community Foundation, you also avoid capital gains taxes on the stock appreciation.

To learn more, contact Sharon Cappetta at scappetta@cfgnh.org or call 203-777-7071.