Life income gifts do two things: they provide charitable support for Seton—and provide both a charitable income tax deduction and an income stream to you and/or your loved ones.
These gift vehicles can provide income benefits comparable to—or in some cases exceeding—those that might be earned in non-charitable vehicles. Many donors establish life income gifts with assets that are producing a very small amount of income, such as cash or appreciated stocks that do not earn dividends.
Seton offers three basic types of life income gifts:
A charitable gift annuity provides a fixed income for life. (gifts of $10,000+)
A charitable remainder unitrust makes payments that fluctuate with the market and so might provide a hedge against inflation. (gifts of $100,000+)
A charitable remainder annuity trust provides a fixed income like a gift annuity, but the tax treatment of the payout may be preferable for donors giving highly appreciated assets. (gifts of $100,000+)
The first two options are by far the most common types of life income gifts. Some donors establish life income gifts through their wills as a means of providing a life income to a loved one.