Planned Giving Opportunites

Planned gifts often allow you to take advantage of considerable tax savings, provide for your loved ones in the future and still benefit from the use of your assets while living. Planned gifts may also provide the personal satisfaction of making that larger charitable gift you always dreamed of giving. Planned gifts are called such because they are deferred. You transfer assets to Perseus House, Inc. or to the Perseus House Charter School of Excellence, Inc. now and receive benefits from your gift, often for your lifetime (and that of a beneficiary). Perseus House or the Perseus House Charter School of Excellence receives the full value of your gift upon the death of your last beneficiary.

More information is available online regarding planned giving opportunities at the Loyal Christian Benefit Association (LCBA) website, or by contacting their Planned Giving specialist Phuong Schuetz as mentioned above. Phuong is also available by telephone at 814-454-7553 (local) or 888-233-5222 (toll-free). LCBA is an Erie, PA-based, non-profit partnering with Perseus House, Inc. and the Perseus House Charter School of Excellence, Inc. to offer planned giving and endowment funding solutions for individuals and institutions seeking to support our shared vision of self-sustainability through earned income.

LCBA, a fraternal benefit society, is a social enterprise in and of itself. LCBA sells insurance and annuity products, and then uses the net proceeds to help local nonprofit organizations like Perseus House, Inc. and the Perseus House Charter School of Excellence, Inc.

Example: The Charitable Gift Annuity (*age 50 and older)

Under a Charitable Gift Annuity arrangement, Perseus House or the Perseus House Charter School of Excellence will reinvest your gift of cash, securities or real estate to guarantee you a fixed income for life (and/or for the life of a beneficiary) - rather than taking it as an outright donation. You receive annuity income now or defer those payments until later. Upon the death of your last beneficiary, the principal sum that funded your annuity payments is available for Perseus House or the Perseus House Charter School of Excellence to use.

This gift is part charity, part income interest purchase. Your annuity rate is the dollar amount returned to you every year as a percentage of the value of your gift. This rate is also related to the age of the recipient(s). It is possible for your annuity return rates to be higher than those of other investments.

Benefits:

In addition to establishing a planned lifetime income for yourself and possibly someone else, you may receive several tax advantages:

• An income tax deduction for the charitable gift portion of this arrangement.
• Capital gains taxes from the "sale" of appreciated securities you may have used to fund your annuity are payable over your life expectancy rather than all in one year.
• Part of your annual income is tax free, excluding it from gross income until you reach your life expectancy.
• Estate tax exclusion: The value of your annuity may qualify as a marital deduction if you and your spouse are the only beneficiaries.

1. Provide fixed or variable life incomes at a certain age;
2. Provide life income for Perseus House or for the Perseus House Charter School of Excellence, then return the fund's principal to your heirs; or
3. Facilitate an immediate property donation allowing lifetime rights to property use.

• a.) Charitable Remainder Unitrust - You fund an individual trust and receive variable income for life or a term of years.
  b.) Charitable Remainder Annuity Trust - You fund an individual trust and receive fixed income for life or a term of years.
  c.) Pooled Income Fund - You invest in a pooled fund and receive income determined by the amount of your contribution and fund earnings.
• Charitable Lead Trust - You fund a trust that provides income to Perseus House or to the Perseus House Charter School of Excellence and then returns the principle to your heirs.
• Retained Life Estate - You give a real estate gift and retain the right to reside there for life or a term of years.

1. a.) Guaranteed variable income for life or term of years as a percentage of the trust's annual value; income tax charitable deduction; avoid capital gains tax.
   b.) Fixed income for life or term of years; income tax charitable deduction; avoid capital gains tax; possible estate tax savings.
   c.) Income tax charitable deduction; avoid capital gains tax.
2. Gift and estate tax deduction; avoid capital gains tax
3. Removal of asset from your estate; avoid capital gains tax; income tax charitable deduction; retained use of property for life.