Charitable Lead Trust
Protect Your Assets
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You can benefit from the tax savings that result from supporting the Chi Omega 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 Chi Omega Foundation:
A charitable lead annuity trust pays a fixed amount each year to the Chi Omega 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 Chi Omega Foundation go up as well.
An Example of How It Works
Celeste would like to support the Chi Omega Foundation and provide for her children. Celeste received a windfall amount of income and needs a large income tax deduction to offset the income. Following her advisor's recommendation, Celeste funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Celeste's trust pays $70,000 (7% of the initial fair market value) to the Chi Omega Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to Celeste. She receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, Celeste 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.
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- Contact Sally Stephens Kimball at 901.748.8600 or firstname.lastname@example.org to talk about supporting the Chi Omega Foundation by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Chi Omega Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: Chi Omega Foundation
Address: 3395 Players Club Parkway, Memphis, TN 38125
Federal Tax ID Number: 31-0936294