A charitable gift annuity is an agreement between a donor and a charity in which a donor makes a gift to the charity and the charity agrees to make annuity payments to the donor for the rest of the donor’s life. When the donor passes away, the remainder of the original gift transfers to the charity. The Roncalli Foundation issues CGAs on behalf of the ACSS.

The annuity payments are based on a percentage of the initial gift, and the payout percentage is determined according to the donor’s age at the time the CGA is established. The older the donor is, the higher the rate. CGAs can be for one life or two lives (e.g., for a married couple).

At the time the CGA is set up, the donor receives a charitable income tax deduction based on the charity’s expected benefits. In addition, the annuity payments the donor receives every year carry tax advantages, as portions of the annual payments may be taxed below the donor’s ordinary income tax rate—or not taxed at all!

Have questions or want to receive an illustration of how a CGA might work for you? Contact us.

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A bequest through one’s will or trust is the easiest way for an individual to make a significant gift to the ACSS. Many people name the ACSS as a beneficiary in their will through one of the following ways:

• Specific designation: The donor specifies the dollar amount, property, or percentage of the estate that the ACSS will receive.
• Residual beneficiary: The donor indicates that the ACSS will receive whatever is left in the estate after other bequests have been distributed.
• Contingent beneficiary: The donor specifies that the ACSS will receive a bequest only if certain conditions are met, e.g., if another beneficiary dies before the donor.

Contact us for information on making a bequest in your will.

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A variety of charitable trusts exists to meet donors’ various needs to support charity and produce income for themselves and their beneficiaries. Trusts provide donors with considerable flexibility in supporting their favorite charity, realizing tax advantages, and helping their family with income benefits. Like any trust, in a charitable trust, a donor transfers assets into a trust for the benefit of charity.

Generally, trusts are described according to when the charity receives its benefits and how the trust’s distribution formula is determined.

• Lead Trusts provide benefits to the charity during the term of the trust, and the remainder is distributed according to the donor’s wishes.
• Remainder Trusts distribute income to the donor’s designated beneficiaries during the term of the trust and provide benefits to the charity at the termination of the trust.
• Unitrusts pay a percentage of the value of the trust to the beneficiary.
• Annuity trusts pay a fixed amount to the beneficiary.

Donors who establish a charitable trust will receive a charitable income tax deduction as well as other possible tax benefits.

Want to see an illustration of how a charitable trust might work for you or have further questions? Contact us.

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Life insurance is offers an easy and flexible vehicle for supporting the ACSS. Donors can use life insurance in the following ways (which can provide different types of tax benefits):

• Name the ACSS as beneficiary of the policy.
• Transfer ownership of the policy to the ACSS.
• Pay policy dividends to the ACSS.
• Buy a policy for the ACSS and pay premiums.

Important: Changes to your life insurance policy for charitable purposes must be made through your life insurance company, not through your will.

Contact us for further information.

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Qualified retirement plans are great for the retiree but can be complicated for the heirs. Deferred income tax on retirement plan benefits must be collected at some point, before or after the retiree’s death. Thus, beneficiaries may be surprised with an income tax bill (and possibly an estate tax bill). Because of the tax disadvantages, retirement plans are frequently used in making charitable gifts.
Retirement plans combined with charitable trusts may also offer excellent ways to support charity and maintain beneficiaries’ inheritance.

Important: Changes to your retirement plan beneficiary designations must be made through your plan.

Contact us for further information.

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