For some donors, a gift that provides a stream of payments may make the most sense from a personal and financial point of view. There are many different variations but three basic forms:
- Charitable gift annuities are contracts with a nonprofit organization in which a donor provides a gift and, in exchange, the nonprofit guarantees the donor and/or another beneficiary income for life. Charitable gift annuities may provide immediate (partial) tax deductions, based on the life expectancy of the donor and the anticipated income stream, and/or reduced capital gains tax liability for gifts of long-term appreciated assets.
- Charitable remainder trusts allow a donor to select the rate of return, receive fixed or variable lifetime income and a tax deduction. The remainder interests benefit NGPA.
- Charitable lead trusts are the reverse of charitable remainder trusts. These trusts provide payment to NGPA for a term of years and then provide the remainder to the beneficiaries.