Growing in Love of God and Neighbor

Life Income Gifts

Life Income gifts enable a donor (and/or designated beneficiary) to receive income for the rest of their life (or a fixed term) and then the balance of the fund is given to a church or other charity.  This can be an advantageous way for a donor to receive income for the rest of their life.  They can rest assured that the remaining funds, when they pass away, will go to a cause of their choosing.  And this type of arrangement may reduce the burden of managing one’s estate for the donor and for their heirs. 

Life Income gifts are generally arranged so that funds are transferred to the church or charity at the outset, which manages and invests the funds, and makes regular payments to the donor and/or beneficiary for the rest of their life.  In the case of donations for the benefit of Trinity Church, the Episcopal Church Foundation (ECF) may be used to manage and administer these gifts.  They may be contacted by calling toll-free 800-697-2858 or visit their website at www.ecf.orgAdditional information from the Episcopal Church Foundation can also be found on the Trinity website hereECF can provide a customized illustration showing your expected income tax deductions and projected income based on the size of your gift and the age(s) of the beneficiary(ies). 

The Episcopal Church Foundation manages several types of Life Income Gifts on behalf of local churches such as Trinity Church.  Each option is invested differently and has a different minimum gift size.

  • Pooled Income Fund: $2,500 minimum
  • Charitable Gift Annuity: $5,000 minimum
  • Charitable Remainder Trust: $250,000 minimum

How does a Life Income Gift Work?

  • Choose a charity (Trinity or other non-profit)
  • Work with charity (ECF, for example) to pick a type of Life Income Gift consistent with the level of periodic payments desired and funds available
  • Decide if you prefer a Single or Joint arrangement, Life or a Fixed Term
  • Receive immediate partial tax deduction
  • Receive periodic income for life or fixed term
  • Balance at end goes to charity (Trinity, for example)

QCD Option into a Life Income Gift

Sometimes a donor can make a one-time tax-free Qualified Charitable Distribution (QCD) from their IRA in exchange for a life income gift. This can only be done once in a lifetime election, and has a maximum of $50,000.  This is generally done with a Charitable Gift Annuity rather than a Charitable Remainder Trust due to the lower dollar amount.