How Giving Back Can Help You

Oklahoma United Methodist Foundation insights

What if you could lower your electric bills by turning on the lights in your home? While some things may seem at first glance to be counterintuitive, a charitable gift can benefit you in surprising and unexpected ways.

A charitable gift annuity and charitable remainder trust are two ways you can make a gift to support your church or a special ministry and receive cash back every year for as long as you live.

What is a charitable gift annuity?

A charitable gift annuity (CGA) is a simple arrangement in which we promise to make payments to you in exchange for your gift of cash, CDs, or an appreciated asset. No matter what happens with the economy, your payments are secure and fixed at a rate that will never change. You will receive a tax-saving charitable deduction, and a portion of your payments could be tax free.

How does a charitable remainder trust work?

A charitable remainder trust (CRT) is similar to a CGA but offers you more options. You can receive payments for your lifetime or up to 20 years. The payment amount may vary with the trust’s performance or be fixed similar to a CGA. It’s possible for you to be involved in selecting the trust investments to maximize trust returns.

Lifetime payments and tax benefits

In addition to lifetime payments, both plans provide the following tax benefits:

• An income tax deduction in the year you make your gift

• Potentially lower estate taxes (if your estate is taxable)

• Capital gains avoidance if you give appreciated assets

With the CGA or CRT, you can have the fulfillment that comes with supporting a cause you care about while achieving your personal and financial goals. Please contact us to view a free illustration of one or both plans, including your potential payments and tax savings. Call or email David Battles at 800-259-6863 or dbattles@okumf.org.