Receive Income Now and Save Taxes

Receive guaranteed income and a tax deduction NOW while giving to the UMRC-Porter Hills Foundation and LATER with a Charitable Gift Annuity (CGA).

In return for transferring cash or stock that are earmarked for the UMRC-Porter Hills Foundation after your lifetime, you can receive:

• Lifetime annuity payments that may greatly *exceed current CD and money market interest rates
• An immediate income tax charitable deduction
• Avoid paying capital gains taxes if you contributed a stock
• Receive largely tax-free income if you contributed cash; and
• Leave a lasting legacy with the UMRC-Porter Hills Foundation when the Foundation receives the principal of the CGA after your lifetime. 

*Your annuity payments are based on your age at the time of your contribution. Here are the current rates: 

Single annuitant age 65 – 5.7%                  Two annuitants ages 75 – 6.2%
Single annuitant age 70 – 6.3%                  Two annuitants ages 80 – 6.9%
Single annuitant age 75 – 7.0%                  Two annuitants ages 85 – 8.1%
Single annuitant age 80 – 8.1%
Single annuitant age 85 – 9.1%                  Single annuitant age 65 defers
Single annuitant age 90 – 10.1%                first payment for 10 years – 11.1%

Receive variable income after selling your real estate without paying capital gains taxes and receive a tax deduction with a Charitable Remainder Unitrust (CRUT)

By putting your real estate into a charitable remainder unitrust (CRUT) before you can sell the property, you can:

• Have CRUT sell your real estate without paying any immediate capital gains taxes
• Receive an immediate income tax charitable deduction
• Leave a lasting legacy with UMRCPH because UMRCPH would receive the remaining principal of the CRUT after your lifetime

You can also diversify your stock portfolio if you contribute appreciated stock into the CRUT and have the CRUT sell the stock.

Here is an example: Henry, age 70, is tired of managing his rental property (his rents are low and his headaches are high). He wants to sell his property, but does not relish paying a big capital gains tax bill. He paid $500,000 for the property, which is now worth $2 million. He holds no mortgage. 

By putting the entire property into a 7% charitable remainder unitrust (CRUT) BEFORE he sells the property, Henry:

• Receives a large income tax reduction ($783,000 based on his age and current interest rates) 
• Pays NO capital gains tax when he sells the property
• Receives $140,000 in income annually (7% of the property value), which is far greater income than his current rent
• May receive increased income in future years because his 7% payment is based on the annual valuation of the CRUT principal
• A nonprofit, like UMRC-Porter Hills Foundation, will receive a transformative gift of the principal after Henry's lifetime. 

Contact Kelli Smith, CFRE, President & CEO of the UMRC-Porter Hills Foundation, at 734.433.1000 ext. 7502 or 616.577.2297 to receive a personalized illustration and learn about more ways to save taxes while making a meaningful impact on the lives of older adults.