Charitable Planning Techniques

Study these Techniques of Charitable Planning

Through the courtesy of the Planned Giving Design Center, we are providing links to the various Charitable Planning Techniques that have been placed on their excellent web site.

Charitable Gift Annuity

Maximizing the Benefits from Your Gift Annuity Program - One of the most significant differences between a charitable gift annuity and a charitable remainder trust is the obligation to make gift annuity payments is a general obligation of the issuing charity whereas the obligation to make payments from a CRT is limited to the trust itself. For this reason, organizations issuing charitable gift annuities set aside, either voluntarily or subject to state law, a portion of the amount transferred in exchange for the gift annuity in a reserve fund for the purpose of satisfying the annuity payments. The problem is that in recent years, the low interest rate environment has caused some reserves to decline to worrisome levels. In this paper, nationally recognized planned giving authority Frank Minton analyzes the various kinds of risks associated with gift annuities, shows how charities can minimize risk and maximize the benefits of their gift annuity programs, and shares some less traditional ideas for attracting more dollars for gift annuities.

Charitable Remainder Trusts

A charitable remainder trust is a trust that provides for a specified distribution, at least annually, to at least one noncharitable income recipient for a period specified in the trust instrument, with the remainder interest paid to at least one charitable beneficiary. This 285-page, fully annotated text, by Marc D. Hoffman, provides a complete technical overview of CRTs, charitable contribution deductions, transfer tax considerations, operational and investment considerations, and cash Flow planning.

Bargain Sale

As its name implies, a bargain sale occurs when a donor, who intends to make a charitable contribution, sells property to charity for less than its fair market value. A bargain sale can also arise when debt-encumbered property is transferred to charity. This memorandum reviews the various types of bargain sales, the technical requirements for qualification, taxation of bargain sales and computation of charitable contribution deductions, and the application of bargain sales to various types of planned giving vehicles.

Pooled Income Funds

This comprehensive paper provides a complete overview of pooled income funds, qualification requirements, income tax deduction rules, taxation of the fund and distributions, gift and estate tax consequences, and application of private foundation excise taxes.

Charitable Lead Trusts

In this edition of Gift Planner's Digest, Robert Lew and Darryl Ott, Esq. provide a concise overview of the variety of charitable lead trusts and provide eight creative case studies that illustrate their application.


Net Income With Make-Up Charitable Remainder Unitrust (NIMCRUT) - Two Donors, Two Lives, Inter Vivos

NIMCRUT - Term of Years

Net Income With Make-Up Charitable Remainder Unitrust (NIMCRUT) - Term Of Years, Inter Vivos