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Gift Planning:
Charitable Gift Annuities and other Life Income Gifts

It is not necessary to give up income to make a gift to protect the environment. There are a variety of plans through which you can transfer assets to The Sierra Club Foundation and receive income.

Generally, a life income gift pays income to you or your chosen beneficiary for a term of years or for life. After the conclusion of the term, or upon the death of the last income beneficiary, the remainder of the life income gift is distributed to The Sierra Club Foundation. Life income gifts, funded with cash, securities, or real estate, may be made during the donor's lifetime or at death for the benefit of one's heirs. In addition to the satisfaction of creating an enduring legacy for the environment, life income gifts offer a variety of tax, financial, and estate planning advantages. Many donors who contribute highly appreciated but low yielding stock find that they are able to increase their annual income while making a very important gift. Contact us.

Immediate Charitable Gift Annuities

A gift annuity is a contract under which The Sierra Club Foundation, in exchange for a gift of cash or marketable securities, guarantees to pay a fixed annual amount to a designated beneficiary for life. Minimum funding level is $10,000 and the minimum age is 65.

Benefits:

  • Guaranteed fixed income for life or a term of years
  • An immediate tax deduction
  • Possible reduction of capital gains taxes
  • Possible reduction in probate expenses
  • You can benefit today as well as provide for a future gift to The Sierra Club Foundation

Age Immediate
Single-Life
Annuity Rate*
65 4.7%
70 5.1%
75 5.8%
80 6.8%
85 7.8%
90+ 9.0%

*Rates effective January 1, 2012.

These rates are for an immediate single-life annuity based on a gift of $10,000 or more, with payments beginning at the time the gift is made. Please contact us to receive rates for an immediate joint-life annuity.

Deferred Charitable Gift Annuities

Similar to an immediate charitable gift annuity, a deferred annuity is a contract under which The Sierra Club Foundation, in exchange for a gift of cash or marketable securities, guarantees to pay a fixed annual amount to a designated beneficiary for life. The minimum funding level is $10,000 and the minimum age is 60 years. The payment begins at a minimum age of 65 years old. Those 65 years and older can defer payments for a minimum of one year out.

Benefits:

  • Guaranteed fixed income for life or a term of years
  • An immediate tax deduction
  • Possible reduction of capital gains taxes
  • Possible reduction in probate expenses
  • You can benefit today as well as provide for a future gift to The Sierra Club Foundation

Age Deferred Single-Life Annuity Rate*
65 5.5%
70 7.0%
75 9.3%

*Rates effective January 1, 2012.

These rates are for a deferred single-life annuity based on a gift of $10,000 or more, with payments deferred until later years. Please Contact us to receive rates for a deferred joint-life annuity.

Charitable Remainder Trusts

A charitable remainder trust is individually managed and may be funded irrevocably with cash, securities, or real estate to The Sierra Club Foundation. The donor or beneficiary receives income based on a fixed percentage (at least 5%) of the trust's assets. The payout rate of the trust is determined jointly by the donor and the Foundation. The terms of the trust can be tailored to your specific financial and philanthropic goals. Generally, these gift arrangements are most suitable for individuals 55 and older and the minimum funding amount is $100,000.

There are two types of charitable remainder trusts: fixed income (charitable annuity trust) and variable income (charitable uni-trust). Factors such as your age and type of asset used to fund the gift will determine which option would best meet your financial and philanthropic goals.

Benefits:

  • Fixed or variable income for life or a term of years
  • An immediate tax deduction
  • No capital gains taxes
  • Partially tax-free income
  • Reduced probate expenses
  • You can make additional gifts to the trust in the future
  • You can benefit today as well as provide for a future gift to The Sierra Club Foundation


Pooled Income Funds

A pooled income fund is a common trust funded with cash or appreciated securities, which allows gifts from many donors to be combined for investment purposes. Each beneficiary receives his or her proportionate share of the net income earned by the fund. Minimum funding level is $10,000.

If you would like additional information on these types of gifts please contact us.


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