Gifts That Pay You Income

There are ways you can receive an annual income for life, and at the same time, enhance the American Lung Association’s research, education and advocacy that will help save lives now and be the champion for future generations.

If you’re considering this kind of gift, we recommend that you consult with your financial advisor.

Charitable gift annuities (CGAs) offer a secure, fixed payment stream for yourself and/or a loved one for your lifetime(s). You will also receive tax benefits and the satisfaction of creating a lasting legacy through the American Lung Association. With the recent increase in payment rates, now is an ideal time to create a CGA with the American Lung Association.

You can donate cash or securities with $20,000 or more to the American Lung Association and receive payments for life in return.

Your potential benefits include:

  • Your payment will never change, and can now go as high as 9.1 percent, depending on your age (you must be 55 or older). If you don’t need the income immediately, you can schedule payments to begin at least one year after your donation. The longer the deferral period, the higher your payment rate;
  • You may be able to reduce your tax burden for the year you make the donation;
  • Gift annuities are an ideal way to provide financial security for you and a loved one;
  • You may avoid some capital gains tax when you use appreciated stock to fund your gift annuity.

Learn more about annuity gifts.

Gift annuities are offered through a partnership with the National Gift Annuity Foundation. NGAF is the largest independent platform offering charitable gift annuities in the US, registered in all states except HI. All remainder proceeds of gift annuities will be granted to the American Lung Association. Find more information at www.nationalgiftannuity.org.

How it works:

  • You donate cash or appreciated securities worth $20,000 or more to American Lung Association. In return, you and/or another beneficiary will receive fixed payments for life.
  • Your payment rate is based on your age (payments start at age 60 or later) and will never change.
  • A portion of your payments will be tax-free.
  • The older you are — or the longer you defer starting your payment — the higher your payments will be.

Benefits to you include:

  • Lifetime payments that will never change.
  • Capital gains tax savings when you fund your CGA using appreciated stock.
  • You are eligible for an immediate charitable income tax deduction.
  • Your gift passes to American Lung Association outside of the estate process.
  • You create your legacy for lung health.
A Charitable Remainder Trust (CRT) is a tax-free trust that pays you and/or other beneficiaries an annual distribution. This payment is either a percentage of the annual value of the trust, or a percentage of the original gift amount.

You can donate appreciated securities or real estate $100,000 or more to the American Lung Association and receive payments for life, or for a fixed number of years, in return.

Your potential benefits include:

  • You avoid paying capital gains tax on sales of appreciated stock and real estate.
  • Convert the full value of stock into a lifetime income stream.
  • Receive a significant charitable income tax deduction.
  • Remove assets from your taxable estate.

How it works:

  • You transfer cash or an appreciated asset* into an irrevocable trust.
  • The trustee then sells the asset, paying no capital gains tax, and reinvests the proceeds.
  • For the rest of your life (or a term of years), you and/or another beneficiary receive payments from the trust.
  • After your lifetime, the remaining principal is used to support the mission of American Lung Association.

* While donating real estate is the most common way to fund a charitable trust, a wide variety of assets can be used, including cash, appreciated publicly traded or closely held stock, as well as oil, gas or mineral interests.

 

Benefits to you include:

  • You receive income for life for you or your heirs.
  • You receive a charitable income tax credit for the charitable portion of the trust.
  • You create your legacy for lung health.

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