Charitable Trusts

Welcome to CharityTrusts.org. This site is dedicated to providing basic information about charitable trusts, including their different forms, advantages, and disadvantages. Charitable trusts take many different forms, and serve a number of different purposes, often going above and beyond the simple act of giving to charity. They can provide for substantial charitable gifts to be made without disturbing your current lifestyle or financial security. They can also provide significant tax benefits when created as part of a comprehensive tax strategy. For any person who is passionate about a charitable cause, and who wants to create a legacy for themselves, but who is concerned about inflation, financial hardship, or providing for their heirs, charitable trusts are an option that should be considered.

The information here is basic and general. It's meant as a starting point for you to investigate your options for charitable giving. It should by no means be construed to constitute individualized legal, financial, or tax advice. The rules governing trusts in general, and charitable trusts in particular, are complicated and arcane, so once you understand the basics, it's time to consult an attorney and tax adviser to assess your particular situation.

So what is a charitable trust? First off, a trust is a form of ownership developed in England during the feudal era. It is essentially an arrangement where a person or entity known as a "trustee" holds property for the benefit of another person, known as the "beneficiary." The reasons why someone might want to create this sort of arrangement are complex, but they most commonly have to do with tax management and maintaining some control over the use of a gift or bequest to another person.

A charitable trust is a type of trust that is set up to further some charitable purpose or goal. They come in a number of different forms, from foundations that benefit various charities over time, to trusts created as part of an estate plan for individuals. Some are created inter vivos, i.e. while the donor is still alive. More often, however, charitable trusts are created in a person's will when he or she passes away. They are a fine way of creating a lasting legacy with the hard-earned wealth accumulated during a productive lifetime.

One of the most useful applications of the charitable trust is to set aside assets to produce income while a donor is alive, with the remainder going to charity when the owner passes away. This allows for a donor to receive tax benefits while he or she is still living from a gift to be made when he or she dies. It is truly a win-win proposition, as the donor benefits personally while advancing a charitable cause at the same time.

Please use the links to the right to explore the different types of charitable trusts available, and get more information on each.

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