Donate from a Charitable Trust

Charitable trusts allow you and your family to enjoy current income tax advantages from the trust assets during your lifetimes, while guaranteeing a future gift to Direct Relief. These trusts potentially allow you to reduce capital gains tax and future estate taxes. Charitable trusts can provide a variety of estate and financial planning benefits, so the type of trust you choose will depend on your situation and your goals.

The information here is not intended to be legal or tax advice. It is intended only to help you understand some of your options for making a charitable gift to Direct Relief. Consult your legal or tax advisor to find out whether a charitable trust is right for you.

Charitable lead trust

A charitable lead trust, also known as a CLT, is a way to create a stream of donations to Direct Relief for a period of years that you choose. You put money in the trust, invest it, and use the proceeds for the charitable donations. When the term of the trust ends, whatever assets are left are given to your loved ones or other non-charitable beneficiaries. Depending on how the trust is set up, it could have a variety of tax benefits for you, your estate, or your heirs.

Charitable remainder trust

A charitable remainder trust, also known as a CRT—if it is a charitable remainder annuity trust it is called a CRAT, and if it is a charitable remainder unitrust it is called a CRUT—is a way to create a stream of income to a non-charitable beneficiary (that could be you or a loved one) for a period of years or a non-charitable beneficiary’s lifetime. You put money in the trust, invest it, and use the proceeds for an income stream. You can name Direct Relief as the charity to receive whatever assets are left when the term of the trust ends, to create a lasting legacy.

A CRT is particularly useful for people who want to create a philanthropic legacy and preserve the value of highly appreciated assets. Tax benefits of CRTs will vary depending on your situation. Talk to your financial advisor, tax planner, or attorney to find out whether a CRT is right for you.

The information provided here is not intended as legal or tax advice. We encourage you to talk to a tax planning professional to find out how charitable trusts could affect your tax situation.

Direct Relief’s Employer Identification Number (EIN) for tax reporting is 95-1831116.

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