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
