Gifts Tomorrow
Life Income (CRT / CGA)
Life-income gifts allow some donors to invest in ministry while receiving income for themselves or others. Strategies such as Charitable Remainder Trusts (CRTs) and Charitable Gift Annuities (CGAs) can balance generosity with income needs, creating a thoughtful plan for both present financial benefit and future ministry impact. Because these gifts are more complex, they should always begin with a conversation and professional counsel.
Who is this for?
This option is generally for donors who want to balance charitable giving with ongoing income needs and who are comfortable exploring more complex planning strategies with advisors.
Eligibility
Life-income gifts typically involve minimum gift amounts, legal agreements, and advisor involvement. Specific structures vary.
This might be right for you if:
- You want to make a substantial charitable gift but still need income from the asset or gift arrangement.
- You hold appreciated assets and want to explore whether a trust or annuity could fit your goals.
- You are willing to work with legal, financial, and tax counsel on a more customized solution.
Why this gift?
How it may benefit you
Depending on the structure, life-income gifts may provide:
- a stream of income for life or for a term of years,
- possible reduction or deferral of capital gains in certain situations, and
- a charitable deduction tied to the arrangement and payout terms.
These gifts are highly individualized, so illustrations and legal review are essential.
How it helps the mission
Life-income strategies can support Denison Ministries while honoring a donor’s planning needs. When the arrangement is the right fit, the remainder of the trust or annuity can become a significant future gift for ministry.
See the difference
| Sell & Give Cash | Fund a CRT | |
|---|---|---|
| Asset Value | $100,000 | $100,000 |
| Original Cost (Basis) | $25,000 | $25,000 |
| Capital Gain | $75,000 | $75,000 |
| Capital Gains Tax (20%) | $15,000 | $0 |
| Charitable Deduction | $0 | $35,000-$40,000 |
| Income Stream | $0 | $5,000 annually (5%) |
| Total Benefit to Charity | $0 | Remainder of trust (potentially >$100,000) |
| Effective Cost to Donor | $100,000 | Significantly less after tax savings and income |
How it works
-
1
Start with a conversation about your goals
Share whether you are most interested in current income, appreciated assets, or long-term legacy planning.
-
2
Engage legal and financial counsel
Life-income arrangements require individualized review and formal documentation.
-
3
Review illustrations or proposal details
Depending on the structure, you may review trust projections, annuity rates, or other planning details.
-
4
Complete the agreement
Once the arrangement is finalized, the gift is funded and the income stream begins according to the terms.
Examples
Charitable Remainder Trust (CRT): Susan, age 68, contributes $100,000 of appreciated stock with a $25,000 cost basis to a Charitable Remainder Trust instead of selling it. This approach may allow her to avoid immediate capital gains tax, receive lifetime income, and create a significant future gift for Denison Ministries.
Charitable Gift Annuity (CGA): John, age 70, and Mary, age 72, make a $20,000 gift through a joint-life Charitable Gift Annuity. The agreement provides guaranteed lifetime income, may include a partially tax-free portion of payments, and creates a future gift for ministry.
Frequently asked questions
Ready to take the next step?
Contact us first. Life-income strategies are conversation-based and not an instant-gift workflow.
If you are exploring charitable remainder trusts, gift annuities, or another life-income strategy, let’s talk through whether the fit is right before anything is set up.
Email: donors@denisonministries.org
EIN: 26-3191442
Denison Ministries does not provide legal, tax, or financial advice. Please consult your advisors. Gift acceptance is subject to Denison Ministries' Gift Acceptance Guidelines.