Gifts That Pay You Income
Create a secure financial future for yourself and your loved ones while funding care care of more neighbors seeking services from Good Neighbor Health Clinic & Red Logan Dental Clinic.
Through an annuity, trust, or pooled income fund, you can make a significant impact to Good Neighbor Health Clinic, while receiving income for life (or a set term) for yourself and/or other beneficiary. At the death of the last income beneficiary or the end of the term, the remaining principle is transferred to Good Neighbor Health Clinic.
How It Works
- You transfer assets to a life income plan and receive an immediate income tax deduction, as well as savings on capital gains taxes for a gift of appreciated assets.
- You and/or an additional beneficiary receive annual income, for life or a set number of years.
- When the plan terminates, the remainder principle passes to Good Neighbor Health Clinic as an unrestricted gift, with no estate taxes.
Types of Plans
Charitable Gift Annuities
A Charitable Gift Annuity (CGA) is a simple one-page agreement between you and Good Neighbor Health Clinic (GNHC). In exchange for your contribution, GNHC agrees to make fixed, quarterly payments to anyone aged 55 or older for life (up to two income beneficiaries). You are eligible to claim an income tax dedication immediately for a portion of the gift and may carry any unused portion of the deduction forward for up to five additional years. The gift may additionally reduce your capital gains tax. CGAs generally start paying out income right away with typically, a portion of your income being tax-free. If you chose to defer the payments to a future time, your rate would increase. When the CGA ends, its remaining principal passes to GNHC.
Donors also have the option to make a one-time tax-free qualified charitable distribution from their IRA in exchange for CGA.
Charitable Remainder Trusts
A Charitable Remainder Unitrust (CRUT) is an irrevocable account from which payments are made to the named income beneficiaries and when the term of the trust ends, the residue passes to GNHC. The term of CRUT can be the lifetime of the named beneficiaries, a fixed term of years (e.g. 10 or 20 years), or a combination of the two. The donor is eligible to claim an immediate partial charitable tax deduction.
The income, paid out quarterly to the named income beneficiary, is a fixed percentage of the fair market value of the trust assets. The amount of the CRUT payout would vary from year-to-year. The trust’s assets are, in part, invested for growth, so there is an opportunity for increased income over time. However, income after the first year will depend on annual investment performance.
We would be more than happy to send you detailed instructions on either CGAs or CRUTs to better explain how these work.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.
Volunteer With Us
Our ability to provide needed care to our neighbors is built on a vibrant network of volunteers. We’re delighted that you’re interested in being a part of our team! To learn about current volunteer opportunities, visit our volunteer page.
At this time, we DO NOT have opportunities available for individuals without clinical licensure. In order to be a clinical volunteer, we require Vermont licensure. Volunteer roles are based on current needs and may change as new opportunities arise.
