There are three ways you can give a gift while still providing or enhancing your current income:
You can transfer money to a charitable gift annuity and receive income for life.
Interest rates on charitable gift annuities are usually attractive compared to certificates of deposit (CDs) and other bank rates. The payouts are fixed and guaranteed so that they will not fluctuate in unstable economic times. Plus you can receive a charitable deduction from your income tax.
What is a charitable gift annuity?
How does a charitable gift annuity work?
Do I receive an income tax deduction?
Are there other tax benefits?
Do my income payments start immediately?
How can I create a charitable gift annuity?
- Contact San Francisco Opera’s legacy giving staff. We will provide you with information on how a charitable gift annuity would work for your age and specific situation.
- A charitable gift annuity contract is prepared for your signature and you transfer the assets to the trustee. The gift is complete.
If you would like to make an important gift to San Francisco Opera while preserving or enhancing your income, consider a pooled income fund gift.
A pooled income fund is made up of gifts that are pooled and invested together. Income is distributed to those you choose, will vary based on the performance of the fund and is taxable to the beneficiary. Upon the beneficiary’s death, San Francisco Opera will add the principal to its endowment.
With this kind of gift, you can create a lifetime source of income for yourself or someone else, claim a current income tax deduction, and provide joy for future generations.
Can the beneficiary be someone other than myself?
What can I contribute to a pooled income fund?
What are the benefits of giving to a pooled income fund?
- Create a source of lifetime income for yourself or a beneficiary.
- Possibly increase earnings from your assets.
- Receive an immediate charitable income tax deduction.
- Diversify your portfolio and avoid any capital gains tax on the assets used to fund the trust.
- Obtain professional asset management.
- Reduce estate taxation, when applicable.
- Make an important future gift to San Francisco Opera.
What else should I know about pooled income funds?
- Pooled income fund gifts are established with assets of $10,000 or more.
- Payments are immediate and continue for life.
- Income from the fund can be a good way to supplement retirement funds or provide support for a parent, child, or others who depend on you.
- Income to the beneficiary is taxable.
How do I make a pooled income fund gift?
- Contact San Francisco Opera’s planned giving staff to review your goals and potential gift assets. We will provide information detailing the benefits of a pooled income fund gift for your review.
- Along with your legal and/or financial advisor, meet with San Francisco Opera staff to review your pooled income gift plans, discuss alternatives, and refine your charitable purpose.
- Trust agreements will be prepared by San Francisco Opera. You should review any agreement with an advisor.
- You and San Francisco Opera sign the agreement, and you transfer the assets to the trustee. The gift is then complete.
You can earn income for yourself or a beneficiary while making a gift to our Company. A charitable remainder trust (CRT) enables you to preserve or improve your financial security and make a gift to San Francisco Opera. You, and other beneficiaries of your choice, can receive variable or fixed income.
How do CRTs work?
CRTs are highly flexible and can be customized to meet your specific financial, tax, and estate planning needs.
- A variable income trust, known as a Charitable Remainder Unitrust, pays out a percentage of the assets, resulting in income payments that rise or fall depending on the annual value of the trust assets.
- A fixed income trust, known as a Charitable Remainder Annuity Trust, generates income that is determined at the beginning and never varies.
- If you do not need additional income now, but want to have more in your later years — and want the income tax deduction now and tax-free growth while you wait — you may wish to create a Deferred Charitable Remainder Trust, a trust variation that accrues income until a future date.
What can I contribute to a CRT?
Contributions of appreciated securities (stocks, bonds, mutual funds) are particularly attractive because they may enable you to benefit from capital gains tax savings. It is often possible to increase your income when low-yielding assets are contributed, then reinvested for higher return.
What are the benefits of a CRT?
- Highly flexible and can be customized to your needs and goals.
- Generates income while making an important future gift to San Francisco Opera.
- May increase income from the assets you donate.
- Qualifies for an immediate income tax deduction.
- Allows you to diversify your portfolio and avoid any capital gains tax on the assets used to fund the trust.
- Receives professional asset management.
- Reduces possible estate taxation.
What else should I know about CRTs?
- You may choose a fixed dollar or fixed percentage income payout, no less than 5 percent, and generally no more than 6-7 percent, depending on age.
- Payments are immediate unless you choose to defer them.
- You have the option of benefitting multiple beneficiaries.
- CRTs can be a good way to supplement retirement funds, plan for future retirement, or provide support for a parent, child, or others who depend on you.
How can I create a CRT?
- Contact San Francisco Opera’s legacy giving staff to review your goals and assets to fund a CRT. We will provide you with illustrations of how a CRT operates.
- Along with your legal and/or financial advisor, meet with us to review your trust plans, discuss alternatives, and refine your charitable purpose.
- Gift terms are finalized and documents prepared. You should review any agreement with an advisor.
- You and the trustee sign the agreement, and you transfer the assets to the trustee. The gift is complete.
To learn more about supporting San Francisco Opera with a charitable gift annuity, please contact Mark Jones at (415) 565-3206 or firstname.lastname@example.org.