There are many reasons to make a life income gift. You may want to make a gift to Whitman College, but feel you do not want to part with the income that you receive from the asset you wish to give to Whitman. Alternatively, you may want to convert an asset that is not generating much income and transfer it to Whitman using an arrangement that will provide you (or someone you name) with more cash flow than you had before. By making a life income gift, you can support Whitman while providing ongoing benefit to yourself or others.
Life income gifts serve dual purposes, by allowing you to make a gift to Whitman College while at the same time providing yourself or others with income for a period of time before Whitman is permitted to use your gift. Because they provide income benefits comparable to or in some cases exceeding those that might be earned in ordinary investments, life income gifts can help donors to make more significant gifts than they might otherwise be able to make. In this sense, they are a "tax-wise" investment in the future of Whitman.
You may make a life income gift by irrevocably transferring securities, money, or other property to Whitman or a trustee. The college or trustee then manages the investment of the assets and pays an income to you, your designated beneficiaries, or both. Income payments continue for the beneficiary's life or, in some cases, for a term of up to 20 years.
Charitable Gift Annuities
In exchange for a gift of cash or securities, Whitman guarantees a fixed income stream to donors for their lifetime. Whitman accepts charitable gift annuities of $10,000 or greater. Gift annuities may be written for one or two annuitants and may commence immediately or after a deferral period. Learn more about Charitable Gift Annuities.
Charitable Remainder Trusts
Through a charitable trust, a donor retains an income interest for a period of years or for the donor's life, and Whitman receives the assets remaining in the trust upon termination of the trust. The donor may designate other beneficiaries of the trust. Learn more about Charitable Remainder Trusts.
Pooled Income Funds
Gifts from multiple donors are combined in a common investment pool. Each donor receives his or her representative share of the net income earned by the fund. Each donor's share of the principal of the fund passes to Whitman following his or her death. Learn more about Pooled Income Funds