The charitable giving strategies we have been discussing have involved making outright gifts to the charities near and dear to your hearts, whether current or future gifts. Over the next few months, we will shift our discussion to some planned giving strategies that involve “split gifts.” These are strategies, many times trusts, that provide a benefit to charity but also give back to a non-charitable beneficiary (frequently the donor.) We’ll begin our discussion with the various forms of charitable trusts – a veritable alphabet soup of CRUTs and CRATs and CLATs and CLUTs and NICRUTs and Flip CRUTS and NIMCRUTs or a Charitable Remainder Trust with an accompanying ILIT. There are a lot of “maybes” in our little chart above. These trusts could involve either current gifts to charity or future gifts, depending on exactly how you structure your trust. They are very definitely complex legal entities for which a professional trustee is highly recommended. Again, depending on the exact type of trust you establish and your personal financial situation relative to potential transfer taxes at the time of your death, these trust strategies may provide some Income Tax savings and/or savings on Transfer Taxes.
This is an area of planned giving that is especially near and dear to my heart and I look forward to sharing with you over the next several months some more detailed information on the alphabet soup of the various charitable trust strategies, their complexities, why you want a knowledgeable, professional trustee, potential tax advantages – and how you and/or your loved ones can benefit from this type of “split gift.”
Northern AZ Climate Change Alliance is a 501(c)(3) entity and donations can be deductible for income tax purposes. NAZCCA would welcome your gift, whether current or future, in whatever amount your heart and finances dictate. Donate Here
Bonnie Lane, Member, Board of Directors
NAZCCA is not licensed to give legal or tax advice and any planned giving strategies you choose to pursue should be discussed with licensed tax and legal counsel