A life income gift is a planned gift to a charity where you give assets (like cash, securities, or property) and, in return, receive a stream of income payments for life (or a set term), plus an immediate partial tax deduction, with the remaining assets going to the charity later.
CRUT
Both a charitable remainder unitrust (CRUT) and a charitable remainder annuity trust (CRAT) let you convert appreciated assets into lifetime income while avoiding capital gains taxes and supporting a fund at the Kansas Methodist Foundation.
Benefits
• Receive income for life and for up to 20 years for a beneficiary after life • Avoid capital gains tax on appreciated assets • Receive an immediate charitable deduction • Create a lasting legacy
Tax Deduction
Overview *
• Deduction: Present value of the remainder interest to charity, calculated using IRS rate assumptions. • Limit: Usually 30% of AGI for appreciated property gifts. • Excess: Carry forward up to five years
A charitable remainder annuity trust (CRAT) allows you to turn cash or appreciated assets into fixed income for life while supporting a fund at the Kansas Methodist Foundation
Benefits
• Receive fixed annual income for life or up to 20 years • Avoid capital gains tax on appreciated assets • Receive an immediate charitable tax deduction • Create a lasting legacy for ministry
Tax Deduction
Overview *
• Deduction: Present value of the remainder interest to charity, calculated using IRS rate assumptions. • Limit: Usually 30% of AGI for appreciated property gifts.
A charitable gift annuity allows you to make a gift to the Kansas Methodist Foundation while receiving fixed income for life.
Benefits
• Receive lifetime fixed payments (rates based on age) • Qualify for a charitable income tax deduction • Payments may be partially tax-free • Support the mission of the Foundation
Tax Deduction
Overview *
• Dollar-for-dollar deduction up to $1,000 (starting Jan. 1, 2026) • Deduction capped at 30% of Adjusted Gross Income (AGI) • Excess: Carry forward up to five years • Deduction: Present value of remainder to charity (gift amount minus annuity’s value). • Limit: 30% of AGI if funded with appreciated property; 60% if cash
• Current CGA: payments begin within one year • Deferred CGA: payments start at a future date (e.g., retirement) • Flexible Deferred CGA: choose when payments begin
Need help in starting or growing your endowment program? The first step is talking with Rev. Dr. Dustin Petz, President and CEO of the Kansas Methodist Foundation.
