A donor may make an outright gift of closely held stock which may be followed by a redemption of the stock by the corporation. The redemption can increase the holdings of the other shareholders in the corporation without the payment of gift tax. In return for making a gift to a trust, the donor receives a charitable contribution income tax deduction for the present value of what Federation will receive when the trust ends. A pooled income fund is a life income plan which operates similar to a mutual fund. All income is distributed to income beneficiaries pro rata.
Donors receive a charitable contribution income tax deduction.
When the income beneficiary dies, a pro rata share representing the portion of that gift is distributed to the Foundation. A charitable gift annuity is a legal agreement between the donor and the Foundation. The donor gives money to the Foundation which, in turn, gives a life income to the income beneficiaries. The donor receives a contribution income tax deduction. In some cases, income payments on charitable gift annuities may start at a later date.