Understanding Types of Planned Gifts

Charitable Gift Annuity (CGA)

A qualified charitable gift annuity is established through a direct gift to Southwestern Baptist Theological Seminary, as the designated charitable organization, through the SSF in exchange for the promise to pay a fixed percentage of the gift back to you. The payout percentage is based upon your age and several other factors. A tax deduction is allowed, and a portion of the annuity payments is tax-free for the period of your life expectancy if you fund the annuity with cash. If you fund your gift with appreciated property, all or a portion of this otherwise tax-free amount will be capital gain income. The minimum amount for a gift annuity is $10,000.

Charitable Remainder Annuity Trust (CRAT)

A charitable remainder annuity trust is a way to make a gift to Southwestern Baptist Theological Seminary through the SSF that allows you to retain income from your contribution for life or for a period of time you specify. Trust assets are invested for payment of a fixed and regular income. Income from the trust is taxed at ordinary rates. A tax deduction is allowed at the time you create your trust. The amount of the tax deduction depends on your age, payment percentage and other factors. Trust assets pass to SSF and then to Southwestern Seminary as the designated beneficiary upon your death, the death of some other designated beneficiary or after a prescribed period of years. The trust may be funded with cash or securities for a minimum amount of $10,000.

Charitable Remainder Unitrust (CRUT)

Like the annuity trust, a charitable remainder unitrust provides for a gift that returns an income. Unlike the annuity trust, the income from a unitrust will increase or decrease with the value of the assets placed in the trust. The payout percentage is determined at the time the gift is made, and assets in the trust are revalued each year. When the value of the trust assets goes higher, more income is received. The income will be less if the value of the assets declines. Similar to the annuity trust, a tax deduction is allowed at the time the unitrust is created, and income is taxed at ordinary IRS rates. The minimum amount is $10,000.

Charitable Lead Annuity Trust (CLAT)

A charitable lead trust is an excellent way to pass highly appreciated assets to heirs with reduced gift or estate tax costs. The charitable lead trust pays an income to SSF and then to Southwestern Baptist Theological Seminary as the designated beneficiary for a specified number of years with the remaining assets reverting to you or to an individual designated by you at the end of the period.

Established 1908 Fort Worth, Texas