A life income gift provides an opportunity for you to make a meaningful gift to the Red Cross while retaining income, and perhaps tax, benefits as long as you (and a survivor, if you so designate) are alive. Life income gifts are ideal for donors who wish to show their support, but may have family obligations, need to provide for retirement, or are otherwise not in a position to consider a substantial charitable gifts at this time..

A life income gift involves the irrevocable transfer of assets, whether cash, stock, life insurance, or other securities, to the Red Cross. In return you receive regular income payments for life. Upon your death (or the death of your designated survivor), the full value of donated assets revert to the Red Cross, enabling us to carry out our mission and ensuring your legacy of generosity.

By making a life income gift to the Red Cross, you will receive the following benefits:

• A charitable deduction in the year you make the gift for the present value of the assets you donate.
• Your effective yield is increased by substantial income tax savings.
• Income can be taxed more favorably in some plans.
• Your probate and estate administration costs may be reduced.

Examples of Life Income Plans

Charitable Gift Annuity

Miss Anderson, age 75, transfers $10,000 to the Red Cross for a gift annuity. She will receive a guaranteed annual income of $790 ($10,000 x 7.9% -- the annuity rate for her age).

A Charitable Gift Annuity is part gift and part purchase of an annuity. In exchange for your donation, we agree to pay you (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The rate of return is attractive and the payments are guaranteed for life. Annuity payments may also be deferred until some future date, such as when you plan to retire and may need the extra income.

The Red Cross uses the Charitable Gift Annuity rates recommended by the American Council on Gift Annuities and may range from 6.0% to 12.0% depending on your age at the time of your gift. For more information, email Mark Winer at  call him at (314) 516.2785.

Charitable Remainder Trust
A Charitable Remainder Trust is created by transferring assets to a trust that pays you (and another beneficiary, if you wish) income for life. At the end of the trust, the remaining trust assets are transferred to the Red Cross. A bank or trusted advisor can serve as trustee.

There are different types of Charitable Remainder Trusts available to you:

Mrs. Edwards creates a $100,000 charitable remainder annuity trust with a payout percentage of 7%. She will receive $7,000 annually for the rest of her life ($100,000 x 7%). If income earned by the trust exceeds the fixed payment of $7,000, the excess is reinvested.

Charitable Remainder Annuity Trusts pay you a fixed dollar amount annually for life. The fixed payments are determined by the payout percentage selected at the beginning of the trust. You can claim a charitable deduction on your income tax form the year that you create the trust. The payments you receive are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.

Charitable Remainder Unitrusts pay you a fixed percentage of the fair market value of the trust assets, as revalued each year. You can claim a charitable deduction on your income tax form the year that you create the trust. The payments you receive are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.

Mr. Edwards’ charitable remainder unitrust provides him with 6% of the fair market value of the assets each year. The first year he receives $6,000 (100,000 x 6%). One year later the trust assets are valued at $120,000, so he is paid $7,200 ($120,000 x 6%). If trust income exceeds the stated payout percentage, the excess is added to the unitrust assets and reinvested.