Life Income Gifts

Charitable Gift Annuities
A Charitable Gift Annuity established with the Kalamazoo Community Foundation is a way for you to receive guaranteed payments for life and an immediate income tax deduction, while at the same time leaving a legacy to the charitable causes of your choice.

By establishing a charitable gift annuity, you or you and another individual (e.g. your spouse or partner, a friend, a former employee) receive annuity payments for life. The payments to you are based on your age; the older you are the higher the annuity payment. If you choose, you can receive an income tax deduction now and defer receiving the annuity payments until a future date of your choosing. This is an excellent way to complement your existing retirement plan.

After receiving annuity payments for life, the remainder interest may be used to establish a named charitable fund, or be transferred to the charity of your choice.

The tax advantages of both a current and deferred annuity are two-fold. First, you receive an immediate charitable income tax deduction when you create your annuity. Second, a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the effective value of the annuity payments.

To help you decide if you should consider a Charitable Gift Annuity or a Charitable Remainder Trust, please scroll to the bottom of the page and click on the comparison chart.


Charitable Remainder Trusts
Charitable remainder trusts offer donors a great deal of flexibility. Payments may be made to you, to a spouse or another beneficiary for life, or a specified number of years not to exceed 20. The income beneficiaries annually receive an amount equal to a fixed percentage of the trust's fair market value (unitrust), or a fixed dollar amount (annuity trust). A charitable remainder trust may be set up during your lifetime or through your will. The eventual distribution to the Kalamazoo Community Foundation will only take effect upon the death of the trust's income beneficiaries, or at the end of the specified number of years. At this time, the remainder of the trust transfers to the Kalamazoo Community Foundation and is placed in one or more charitable funds established or selected by you to support your charitable giving goals.

To help you decide if you should consider a Charitable Gift Annuity or a Charitable Remainder Trust, click on the link below to view a comparison chart.