are as many different reasons for making a charitable gift,
as there are contributors. Some give because of ideological
commitment, some because of a desire to support the arts or
sciences. Still others give out of compassion for the suffering
the stated reason may be, the underlying reason most people
give to charitable organizations is that they want to make
There are several tax benefits associated with charitable
contributions as well. In fact, the tax laws specifically
encourage charitable giving. A charitable gift in trust will
enable you to realign your investments and provide you and
your family with increased cash flow.
making a charitable gift reduces your taxable estate, thus
reducing the tax liability on your estate after you die.
arrangement where money or property is donated to a charity, but
the donor has use of the property and/or receives income from
the property for the donor’s lifetime or for a specified period
Charitable Remainder Annuity Trust
– The income distributed to the donor is a fixed dollar amount
each year determined at the time the trust is funded.
Charitable Remainder Unitrust
– The income distributed to the donor is determined each year as
a fixed percentage of the market value of the assets at the end
of the previous year.
benefits a of CRT include:
donor receives an immediate income tax deduction for the present
value of the remainder interest of the trust that will go to
charity. Assets transferred to a CRT are not included in the
The donor may retain some control of the way the
assets are invested by the corporate trustee.
transfer of appreciated assets from a donor to a charitable
trust does not incur capital gains tax.
Charitable Lead Trusts
irrevocable split-interest trust that makes annual distributions
to a charity for a term of years or for the lifetime of one or
more individuals, after which the trust interests are
distributed either back to the donor or to other non-charitable
beneficiaries, usually family. If the assets are distributed to
individuals other than the donor, the transfer tax consequences
are fixed when the trust is established based upon the present
value of the future transfer.
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Donor Advised Charitable Fund
charitable giving vehicle administered by a third party created
for the purpose of making a gift to charity where the donor does
not want to pick the charities that will receive the funds right
now, but instead wants to distribute the funds over time, and
the donor does not want to create a private foundation.
The account is established within a public charity, often a
community foundation. The donor gives complete control over the
donated funds to the charity so the donor gets a current income
tax deduction for the full amount of the contributed assets.
Despite the fact that the donor relinquishes control over the
donated funds, the unique aspect of a Donor Advised Fund is
that the donor can remain involved by making non-binding
recommendations to the public charity as to investment policy
Non-deposit investment products are not insured
by the FDIC or any other agency of the United States, are not obligations of, or guaranteed by The North
Side Bank and Trust Co. Non-deposit investment products are
subject to investment risks, including the possible loss of the
principal amount invested.
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