Legacy giving allows donors to support a charity while receiving potential tax benefits, lifetime income, or estate planning advantages. The best option depends on the donor's financial goals and the assets they want to give.
A Charitable Gift Annuity(CGA) is one of the simplest options. A donor gives cash or appreciated assets to a charity and receives an immediate charitable tax deduction, plus payments for life. Part of the payments are tax-free and capital gains on appreciated assets which can be spread over many years. CGA payments cover only one or two people, cannot receive additional contributions, and any remaining funds stay with the charity after the donor's death.
Under SECURE Act 2.0, individuals age 70½ or older can make a one-time Qualified Charitable Distribution (QCD) from an IRA to fund a CGA, up to a $55,000 limit in 2026.
For larger gifts, Charitable Remainder Trusts (CRT) are often used. A Charitable Remainder Annuity Trust (CRAT) pays a fixed amount each year and does not allow additional contributions. A Charitable Remainder Unitrust (CRUT) pays a percentage of the trust's value each year, so payments can rise or fall based on investment performance. CRUTs also allow the donor to make additional contributions. and include more flexible options.
An advantage of these trusts is the charitable deduction, which allows appreciated assets to be sold inside the trust without immediate capital gains tax.
Whether a donor values guaranteed income, tax savings, supporting family, or leaving a charitable legacy, legacy giving offers flexible strategies to meet both personal and philanthropic goals.