Life Income Gifts - Give AND Receive

A Charitable Remainder Trust

You can set up a Charitable Remainder Trust valued at $100,000 or more that will pay you an income for the rest of your life, with the residual going to WVWA after you have died. You may also name a successive beneficiary, such as a spouse. 

You may fund the trust with cash, securities or real estate. You will have removed the principal amount from your estate, so you avoid paying estate taxes on it. 

You will receive an immediate charitable tax deduction for the remainder value of the principal that goes to WVWA. 

If you fund the trust with long-term appreciated property, you may eliminate or substantially reduce capital gains taxes. 

If you fund the trust with cash or tax-free municipal bonds, the trust can provide you with tax-free income.

Pooled Income Fund

Another kind of life income gift is the Pooled Income Fund. Gifts from many individuals are "pooled" together in one fund for investment purposes. Every six months the income earned by the funds is distributed to the participants based on their proportional share of the total fund.

You or someone you designate (the income beneficiary) will receive a proportionate share of the Fund's net income each year. The amount you receive is based on the fair market value of your gift and the variable rate of return that the fund is producing. 

When the income beneficiary dies, a share of the Fund proportionate to your original gift goes to WVWA's endowment fund. 

The minimum amount for an initial gift to the WVWA Pooled Income Fund is $5,000. Additional gifts of $2,500 or more can be made at any time.

If you hold low-yield securities, it is possible that you can realize a higher income through WVWA's Pooled Income Fund.

You will also avoid the capital gains tax that you would incur if you sold the securities.

For more information about any of these ways of giving gifts to WVWA, please contact Donna Middleton, Director of Development, at 215-646-8866.