Charitable trusts are a simple way to provide for family and WOSU. Support WOSU and receive fixed payments for life.
See what a trust can do. For more information contact the WOSU Advancement Team at 614-292-9878 or advancement@wosu.org.
A charitable remainder trust allows you to benefit a charitable organization such as WOSU and receive an income stream in return. This type of gift is an irrevocable agreement with a trustee, at least one life income beneficiary and a charitable beneficiary.
The trust pays income to you or your named beneficiaries for life and/or for a fixed term. At the end of that time, the balance of the trust is distributed to WOSU to support your area of interest. The trust can be structured for the lives of the income beneficiaries, for a fixed term of up to 20 years, or a combination of both. The trust payout percentage must be at least 5%. An income tax charitable deduction is available for a portion of the gift made to the trust in the year the trust is established. The trust avoids immediate capital gains taxes and may reduce gift and estate tax liability.
By funding your trust with long-term appreciated assets, you receive additional benefits including:
- You eliminate up-front capital gains tax.
- You may also increase your lifetime income as compared to the yield on the contributed
assets.
Types of Trusts
Charitable Remainder Annuity Trust
- You receive a regular, fixed-dollar income based on a percentage of the trust’s initial assets.
- You may not make additional contributions to the trust.
Charitable Remainder Unitrust
- You receive a regular, variable-dollar income (the amount you receive is a set percentage of the current value of the unitrust, redetermined annually).
- You may make additional contributions to the trust.
Benefits
- Income to you or other designated beneficiaries
- Freedom from investment responsibilities
- Immediate capital gains taxes avoided if funded with long-term appreciated property
- Current income tax charitable deduction
- Potential estate tax savings
How It Works
For example, a donor age 60 transfers $500,000 in highly appreciated assets with a 30% cost basis to a 5% charitable remainder trust for her life. The donor receives $25,000 in the first year and 5% of the value of trust revalued annually.
When she passes away, WOSU receives the remainder toward her intended purpose. Donor receives an upfront income tax charitable deduction of $189,300, which can be used to offset taxes for the current year then up to five additional years. The donor also has a capital gain saving of (assuming a 23.8% federal and state capital gain tax rate) $83,300.
See what a trust can do. For more information contact the WOSU Advancement Team at 614-292-9878 or advancement@wosu.org.
WOSU Public Media is part of The Ohio State University. All WOSU Public Media gifts and endowments are managed through The Ohio State University Foundation, the university’s primary fundraising and gift-receiving organization. The Ohio State University Foundation does not provide legal, tax or financial advice to its donors or their advisors. We encourage you to review your gift plans with your legal and tax advisor to determine the best plan for you.