Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting the Alpha Gamma Delta Foundation without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to the Alpha Gamma Delta Foundation:
A charitable lead annuity trust pays a fixed amount each year to the Alpha Gamma Delta Foundation and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to the Alpha Gamma Delta Foundation go up as well.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
An Example of How It Works
Debra would like to support the Alpha Gamma Delta Foundation and provide for her children. Debra received a windfall amount of income and needs a large income tax deduction to offset the income. Following her advisor's recommendation, Debra funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Debra's trust pays $70,000 (7% of the initial fair market value) to the Alpha Gamma Delta Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Debra. SHe receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, Debra receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Julie Waitman at 317-663-4242 or firstname.lastname@example.org to talk about supporting the Alpha Gamma Delta Foundation by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Alpha Gamma Delta Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Alpha Gamma Delta Foundation, Inc.
Address: 8710 N Meridian Street, Indianapolis, IN 46260
Federal Tax ID Number: 35-2057322
The Alpha Gamma Delta Foundation is a 501(c)(3) U.S. charitable corporation; tax benefits are available as allowed by U.S. law.
Calculate Your Benefits
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