Charitable gift annuities and charitable remainder trusts are gifts that pay you income for life while helping to protect America’s national parks for generations to come.
Charitable Gift Annuities
A charitable gift annuity is a type of gift where you can receive a tax deduction and make a gift that pays you income for life. As a donor, you make the gift using cash or securities and, in return, NPCA pays you a fixed income payment every year for the rest of your life.
Charitable gift annuity payment amounts vary based on your age when you begin receiving payments and the size of your gift. Tax benefits vary based upon the asset used to fund a gift annuity. For example, if you have owned stocks in a company for several years and they have appreciated in value, you may receive extra tax benefits compared to funding your gift annuity with cash.
How It Works
- You irrevocably donate $10,000 or more in cash, securities or real estate to NPCA.
- You and/or your beneficiary received fixed annual income payments for life at a rate based on age. You must be at least 65 years of age to receive income payments.
- You are eligible for an immediate tax deduction in the year you make your gift (and donating highly appreciated securities may also allow you to save on capital gains).
- The remaining balance of your gift passes to the National Parks Conservation Association after the lifetime of your income beneficiaries.
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Charitable Remainder Trusts
Similar to charitable gift annuity, charitable remainder trusts are a powerful way to protect the national parks you love and cherish while receiving income for either a fixed number of years or for the rest of your life. You can even establish a trust that provides income for both your and your spouse’s or partner’s lifetimes.
Here’s how the process works:
- Establish a trust with NPCA using $250,000 or more in cash or securities (or real estate that is valued at 350,000 or more).
- If named as trustee, NPCA works with our legal and investment partners to draft trust documents and manage the trust.
- You or your beneficiaries receive income for life (you must be 65 or older to receive payments) or for a fixed number of years, up to 20 years.
- Your payments will be a percentage of the trust assets agreed upon when establishing the trust. Payment amounts vary based on how the trust investments perform each year, but the percentage amount will never change. This amount is typically 5%, which is the statutory minimum.
- You may add to your trust at any time with additional gifts of cash, marketable securities or real estate.
- When the unitrust terminates (either at death of the last beneficiary or at the end of the trust term) the remaining balance transfers to NPCA.
How You Benefit
Charitable remainder trusts not only provide tremendous support for NPCA and America’s national parks, but they can provide substantial benefits to you as well. Here are a few of the ways you can benefit:
- Your trust provides payments for life or for a fixed number of years.
- You receive an immediate tax deduction for a portion of your contribution in the year you establish your trust.
- If you donate appreciated securities, such as stock, you may save on capital gains taxes. Additionally, those assets can be sold and reinvested without incurring capital gains at the time of transfer.
- If you donate real estate and your home has appreciated in value since you purchased it, you may save on capital gains taxes.
- You make a gift that not only benefits you, but also supports the national parks you care about.