Gifts that Pay You Income


Gifts that Pay You Income

You can receive a steady income for life with a gift for Sierra Club Foundation that also preserves what you love – the precious wild places of our earth. If you’re considering a gift like this, we recommend that you consult with your financial advisor. Life income gifts benefit Sierra Club Foundation, the charitable affiliate of Sierra Club.

You or your loved ones can receive fixed payments for life as well as tax advantages while you preserve and protect our environment for years to come. This is a great way to supplement the income you receive in retirement, or to provide additional income for aging parents.

To set up your charitable gift annuity, you simply transfer cash or securities to Sierra Club Foundation. The minimum gift is $10,000. Sierra Club Foundation pays a fixed income for life to you, yourself and a spouse, or any two beneficiaries you name. It’s recommended that beneficiaries be at least 65 at the time of the gift. The remaining balance passes to Sierra Club Foundation when the contract ends.

There are many benefits to you with a charitable gift annuity:

  • You receive a dependable, fixed income for life.
  • You receive payments at a rate higher than the interest you are currently receiving, in many cases.
  • You receive an immediate income tax deduction for a portion of your gift.
  • You avoid capital gains tax when you fund your charitable gift annuity with appreciated securities, naming yourself as the beneficiary.
  • A portion of your annuity payments will be treated as tax-free return of your principal, increasing the yield from your annuity.

A deferred gift annuity is often the right choice for younger donors who are saving for retirement and trying to lower their taxable income. Because the payments you receive are deferred, Sierra Club Foundation can offer a higher income rate than other kinds of annuities, and you may get a larger charitable income tax deduction.

To create your deferred gift annuity, you transfer cash or securities to Sierra Club Foundation. The minimum gift is $10,000. Beginning on a specified date, Sierra Club Foundation begins to pay a fixed income for life to you, yourself and a spouse, or any two beneficiaries you name. It’s recommended that beneficiaries be at least 65 to begin receiving payments and be at least 60 to fund the gift. The remaining balance passes to Sierra Club Foundation when the contract ends.

Benefits to you with a deferred gift annuity:

  • You receive a higher annuity rate and get a larger charitable tax deduction.
  • You can target your annuity payments to begin when you need them – at retirement, for example.
  • The longer you defer the payments, the higher your payments will be.

The most flexible life-income plan, a unitrust is a powerful vehicle for benefiting yourself, your heirs, and Sierra Club.

You can use almost any asset to fund a unitrust, including cash, publicly traded stocks and bonds, closely held stock, partnership interests, and real estate. You can tailor your unitrust to meet many financial or estate planning goals. You can choose to receive income immediately, or you can structure the trust and its investments to defer most of your income to a future time (a FLIP Unitrust, see below). If you are insurable, you can even use some of the income or tax savings produced by your plan to purchase a life insurance policy that replaces your gift and flows to your heirs outside of your estate (“wealth replacement”).

To create your charitable remainder unitrust, you transfer cash or securities into a trust. The minimum gift is $100,000. The trust pays a percentage of the value of the principal, which is valued annually, to you or beneficiaries you name. When the trust ends, the remainder goes to Sierra Club Foundation.

Benefits to you with a Charitable Remainder Unitrust:

  • You receive income for life or a term of years in return for your gift.
  • You receive an immediate income tax deduction for a portion of your contribution.
  • You reduce your estate tax liability by removing a large taxable asset from your estate.
  • You pay no upfront capital gains tax on appreciated assets you give.
  • You can make additional gifts to the trust as your circumstances allow for additional income and tax benefits.

A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you and/or other beneficiaries a fixed annuity for life or for a term of years (up to 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust.

To create your charitable remainder annuity trust, you transfer cash, securities, or other appreciated property into a trust. The minimum gift is $100,000. The trust makes fixed annual payments to you or your beneficiaries. When the trust ends, the remainder goes to Sierra Club Foundation.

There are many benefits with a charitable remainder annuity trust:

  • You receive fixed income for life or a term of years in return for your gift.
  • You receive income that may be taxed favorably.
  • You receive an immediate income tax deduction for a portion of your contribution.
  • You reduce your estate tax liability.
  • You pay no upfront capital gains tax on appreciated assets you donate.
  • Your trust can meet personal or family needs that are tied to a specific time frame, such as tuition payments.

If you have questions or would like additional information, please get in touch with Lori Sullivan, Director of Gift Planning, at giftplanning@sierraclub.org or at 800-932-4270. I would be happy to work with you to meet your personal and philanthropic objectives.

As with all gift planning, you should consult with your tax advisor and lawyer to determine what planned gift strategy is best for your current tax situation and income requirements. Consulting estate-planning professionals will help ensure that your wishes to make an enduring environmental legacy will be fulfilled.