A Way to Help Your Donor Benefit Family and Support Your Mission
My last post covered two planned gifts that make a perfect blend - a charitable gift annuity and bequest. What if the bequest was blended with another planned gift, a charitable lead trust to benefit both your charity and a donor's family? Who might be the right profile for this gift combination?
If you have a donor who is looking to support your cause today and in the future, but also wants to provide for family, that person might be interested in a family charitable lead trust coupled with a charitable bequest. Here is how this plan might work:
- The trust could be funded with cash or an income producing asset such as stock.
- The trust would make payments each year for a term of years (selected by the donor) to support your cause. This plan would work well for a donor who is looking for a way to fund your current campaign over a number of years.
- The donor would receive a gift tax deduction in the year the trust was funded.
- Once all payments had been made to charity, the remaining value would go to the donor's family. The family beneficiaries would receive the trust value (including any growth over the term). Because of the initial gift tax deduction, the donor could potentially transfer significant value to their family over the life of the trust at little or no gift cost.
- The donor could add a charitable bequest to your organization in their will, to make their annual gifts from the lead trust go even further to support your mission.
Keep in mind, there is a special profile for the donor of a family lead trust. These types of trusts are normally funded by a donor who is willing to make a gift of $1 million or more. So, if you have a donor who fits this profile, you might consider offering the combination family lead trust plus charitable bequest as a way to achieve their personal and philanthropic goals. To view an illustration of this plan for your donor, please contact Crescendo at 1-800-858-9154 and request a free trial of blended gifts software.
About Kristen Schultz Jaarda, JD, LLM
Kristen Schultz Jaarda is Executive Vice President of Crescendo Interactive, Inc. She specializes in charitable tax planning and online marketing for planned gifts. She is responsible for client education and leads Crescendo's marketing services and support team. She is a nationally recognized speaker, conducts seminars nationwide and is a principal faculty member of GiftCollege.
Kristen serves as a board member for the American Council on Gift Annuities (ACGA) and as a member of the ACGA Rates and State Regulations Committees, Editorial Advisory Board member for Planned Giving Today, Committee Member for the ABA Charitable Planning and Organization's Group, past Legislative Chair and a board member for the Partnership for Philanthropic Planning of Greater Los Angeles (PPP-LA), a member of the Ventura County Planned Giving Council and a committee member and volunteer for several California charities. She writes weekly for CrescendoTweet and her planned giving blog.
Previously, Kristen served as Counsel to the Assistant Secretary of Education in Washington, D.C. and was Oversight Counsel to the U.S. House Committee on the Judiciary. Prior to that, she worked in a public affairs law practice. Kristen graduated from UCLA School of Law where she was Law Review Editor. She completed her Tax LL.M. with honors at Loyola School of Law. Kristen is a member of the California State Bar, D.C. Bar and the Maryland State Bar.