If you feel this page is not displaying correctly, you may need to upgrade your browser.

Income for Life

Charitable life income gifts can enable you to:

• Increase your income
• Receive an immediate charitable income tax deduction
• Avoid capital gains tax

In a life income plan, the donor makes an up-front gift to the Museum, but retains the right to receive income payments for life (or, in certain cases, a period of up to 20 years). At the end of that time, the remaining principal goes to support the Museum's work. The Museum offers three types of life income plans.

A Charitable Gift Annuity is a contract between the donor and the Museum, which states that in return for a gift to the Museum, the donor receives income payments for life. With rates based on the donor's age, these payments are fixed and never vary, and they are determined at the time the gift is made. Once the gift is made, the Museum directly assumes the obligation to make the payments. Gift annuities can be immediate, where the payments begin at the time the gift is made, or deferred, where the payments begin at a future date determined by the donor.

The Pooled Income Fund is a charitable trust established by the Museum to accept gifts from many donors. All the gifts are invested together, and income (dividends and interest) earned by the Fund is distributed quarterly to donors on a pro-rata basis. Because part of the portfolio for the Fund is invested for growth, this plan offers the potential for growth in both the income stream and the future gift to the Museum.

A Charitable Remainder Trust is a trust established by the donor to hold and invest assets. The income payments are made in one of two ways; either as a fixed percentage of the total trust principal as valued each year, or as a fixed dollar amount of the trust value on the date of the gift. The trust can have a duration of either the lives of the donor and/or loved ones, or a specific term of up to 20 years. This plan is most cost effective if a larger, "six figure" gift is being considered, and it can be structured to meet the specific needs of the donor and the income beneficiaries.

back to top