You may wish to make a substantial gift to Antioch University New England but feel you cannot afford to give up the annual income produced by the asset. Our income gift program offers several ways to help you make such a gift, while retaining an income. The benefits to you, the donor, vary:
Charitable Gift Annuity
Perhaps the simplest gift arrangement, a Charitable Gift Annuity is a contract between Antioch University New England and the donor, providing for the payment of life income at a fixed rate. The donor receives an income tax deduction in the year of the gift, subject to the usual rules of deductibility.
The annuity has an attractive provision for the taxation of the income: a portion of each payment is treated by the IRS as the nontaxable return of the donor’s principal; another portion is taxed as a capital gain to the donor if the appreciated assets are contributed; and the balance is taxed as ordinary income.
Charitable Remainder Trust
Charitable Remainder Trusts make it possible for you to make a significant charitable gift, while enjoying a number of tax and other financial benefits. Two trust options are available to you:
- Charitable Remainder Unitrust
This individual trust pays the donor a variable annual income. Income may be paid quarterly, semi-annually, or annually, at the donor’s option. Antioch University New England may serve as trustee, or an independent trustee may be selected.
- Charitable Remainder Annuity Trust
This is the same type of gift vehicle as the unitrust, except that the income payment is a fixed dollar amount when the gift is established. Because the income will not vary, the annuity trust is attractive to donors seeking secure and stable future income. Also, because the donor will not have the benefit of possible future increases in the value of the trust principal, an annuity trust will generate a larger charitable deduction than a unitrust established in the same amount.