Charitable Trust Solutions Program

As a resource center and consultant for nonprofits, CGRC coordinates and manages the turnkey Charitable Trust Solutions Program for nonprofits.

Most nonprofits are unable to provide the guidance to help donors properly implement a Charitable Remainder Trust or Charitable Lead Trust. Furthermore, regulations limit how much nonprofits may assist donors in these areas and many times professional financial advisors may lack the knowledge and experience (and sometimes motivation) to aid the donor in using these intricate trust vehicles.

The Charitable Trust Solutions program was created to help non-profit staff address these challenges. This turnkey program includes customized charitable trust design services based on the individualized donor’s situation and objectives. It offers full administration and tax reporting, interactive illustrations, full-service investment management of the trust assets and ongoing updates and servicing.

USES OF CHARITABLE TRUSTS

Charitable Remainder Trusts

  • Can be used to sell appreciated assets and avoid recognition of capital gain on lump sum upon sale leaving more principal to invest to produce income for the donor.
  • Often used by business owners upon sale of their business or by real estate investors when their properties are liquidated.
  • Creates a supplemental tax favored “charitable retirement plan” option when traditional retirement plan contribution levels are reached by high income donors.
  • Provides donor with tax-favored retirement income for life.
  • Trust assets are not included in donor’s taxable estate at death.
  • Trust assets are not subject to claims of donor’s creditors in a lawsuit

Charitable Lead Trusts

  • Can be used to offset large taxable income after the sale of an appreciated asset.
  • Can be used to offset tax burden upon receipt of a large taxable payment in one year, e.g. Deferred Compensation Plan payouts.
  • Allows donor to transfer substantial assets to next generation during life without gift tax, or at death without estate tax.