Little Pink Houses of Hope

In exchange for your donation of $25,000 or more, Little Pink Houses of Hope will make annual fixed payments to you for as long as you live, starting when your gift annuity contract is signed.

Example: If Sarah, age 81, establishes a $50,000 charitable gift annuity with Little Pink Houses of Hope, her payment rate will be 7.4%*. She will receive an annual income of $3,700 for the rest of her life! Compare that to the income on a CD earning 1%. Sarah may also be eligible for a significant income tax charitable deduction.

*Based on payment rates as of January 1, 2020.

If you have stock or mutual funds that you have held for more than a year and that have increased in value, you can use them to fund your gift annuity and you will bypass a significant portion of the capital gains tax. The remaining gain will be apportioned over several years of your annuity payments rather than being taxed all at once.

Example: Ellen, age 84, establishes a $50,000 charitable gift annuity with stock that she originally purchased for $10,000. In addition to an annual payment of $3,700 for as long as she lives and an income tax charitable deduction, more than $20,000 of her capital gain on the stock’s appreciation will never be taxed.*

*Based on payment rates as of January 1, 2020. For illustration purposes only.

With the right planning your real estate investment can be used as a reliable income source and give you capital gains and other tax benefits. Contact our Planned Giving Liaison, Kathy Gates at kathy@littlepink.org

A charitable remainder unitrust can provide you and/or other beneficiaries with income for life or for a fixed number of years. For your donation, which can be appreciated securities or real estate, you receive an immediate income tax deduction for a portion of your contribution to the unitrust and savings on capital gains taxes, too. You will also have the satisfaction of making a significant gift that benefits you now and Little Pink Houses of Hope later.

This type of gift results in:

• Avoiding paying capital gains on sales of appreciated stock and real estate
• Converting the full value of stock into a lifetime income stream
• Receiving a significant charitable income tax deduction
• Removing assets from your taxable estate

Example: Claire and Robert, both age 74, realize that estate taxes could significantly reduce the assets they are able to leave to their heirs. Robert also wants to make sure that Claire has ample income to live on even if she needs long-term care. Guided by their financial advisors, they created a 5% charitable remainder trust funded with $1 million in Robert’s highly appreciated business stock. Robert is at peace knowing that Claire will have an additional retirement income of $50,000 a year. This action also removed $1 million from their taxable estate and avoided significant capital gains taxes.