Life Income Gifts

Charitable Gift Annuities
A Charitable Gift Annuity is a contract between Burlington United Methodist Family Services, Inc. and individuals or couples that meet the required minimum age of 60 years (younger donors can establish a deferred annuity for tax benefits now and income beginning later). The donor transfers property (usually cash, securities or real estate) in exchange for a fixed dollar payment during his or her lifetime. The payment can begin immediately or may be deferred for a period of time to be determined by the donor. Income will be paid to the annuitant on a semi-annual basis. The donor may name him or herself as sole annuitant or designate another annuitant: solely, concurrently, or consecutively. At the time of the annuitant' death, the asset principal balance is added to Burlington’s general endowment.

A minimum investment of $5,000 is required to establish a Charitable Gift Annuity contract. Burlington United Methodist Family Services, Inc. will accept cash and marketable securities in exchange for a gift annuity. For information on other assets, please contact Burlington’s Resource Development staff.

For the donor, the gift annuity offers an opportunity to make a current, irrevocable commitment to a charity you care about; receive lifetime payments (or provide support to another person); avoid an immediate capital gain tax on a gift of appreciated, long-term property; receive an income tax deduction for the gift portion; and remove the property from his or her estate.

Burlington UMFS follows the gift annuity rate policy recommended by the National Committee on Gift Annuities (founded in 1927). The rates are periodically revised and are designed to allow the charity to retain a minimum of 50 percent of the initial gift amount. Rates are determined using an actuarial formula that takes into consideration the mortality rate, the investment income the charity should expect to earn on the gift, minimal administrative cost, etc. For information on Burlington’s Gift Annuity rates or to request a personalized illustration, please contact us at (800)969-0079 or direct an email message to foundation@bumfs.org.

Trusts
Charitable Remainder unitrusts and annuity trusts can be used to make contributions to Burlington United Methodist Family Services, Inc. Charitable trusts provide a lifetime income for the donor as well as create a substantial income tax and estate tax benefits. Trust arrangements are tailored to each individual situation upon consultation with the donor's attorney. For general or detailed information, please contact us at (800)969-0079 or direct an email message to foundation@bumfs.org.