Gifts of cash provide you with the maximum allowable charitable deduction – more than gifts made using assets other than cash. The IRS allows you to claim a charitable deduction for gifts of cash up to 50% of your adjusted gross income each year.
Gifts made using checks and credit cards are considered gifts of cash and receive the same tax benefit.
Any excess deduction can be carried forward for up to 5 additional tax years if needed.
By using an asset other than cash to make a gift, you can double your benefit.
Avoid or delay capital gains if the asset has appreciated.
Receive a deduction for the full value up to 30% of adjusted gross income. Any excess deduction can be carried forward for up to 5 additional tax years if needed.
Did you know you could set aside a portion of your estate for charity while leaving the bulk to heirs? Many people decide to leave a percentage of their estate (such as 10%) to charity and the rest to family.
Or, you can provide for family and friends first, then leave the rest of your estate -- known as the "residue" -- to charity. Either of these methods can be established through a bequest in your will or living trust.
You place assets in trust for a number of years. You select the time frame.
During that period, we receive income from the trust. You select the payout percentage. You receive a gift tax deduction (note: you may owe gift taxes).
At the end of the trust, your named heirs receive the trust assets.
No additional gift or estate taxes are due when your heirs receive the trust assets. The value of the assets were “frozen” when they were originally transferred into the trust.
This arrangement may be right for you if:
You would like to pass assets to heirs in a tax-efficient manner.
The assets in question are expected to appreciate substantially over time.
Did you know you could set aside a portion of your estate for charity while leaving the bulk to heirs? Many people decide to leave a percentage of their estate (such as 10%) to charity and the rest to family.
Or, you can provide for family and friends first, then leave the rest of your estate -- known as the "residue" -- to charity. Either of these methods can be established through a bequest in your will or living trust.
You contribute securities or other cash, assets to a charitable lead trust.
The trust makes fixed annual payments to Fordham University for a period of time.
When the trust terminates, the remaining principal is paid to your heirs.
Benefits
Trust payments to us for a term reduce the ultimate tax cost of transferring an asset to your heirs.
The amount and term of the payments to Fordham can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
All appreciation that takes place in the trust goes tax-free to the individuals named in your trust.
Maybe. If the trust is structured a certain way, youll be eligible to claim an income tax deduction in the year you set up your trust. However, that means that all of the trust income in following years will be taxed to you as well (subject to deductions for payments made to Fordham). Most donors structure their CLTs in a way that does not yield a current income tax deduction so that they dont have to worry about income tax issues in the future. In both cases, you are able to provide wonderful support to Fordham and to pass trust appreciation to your family free of gift and estate tax. We can provide you and your advisers with information that will help you decide which type of CLT will work better for you.
There is no minimum or maximum term for your charitable lead trust. However, if you want to maximize the benefit to Fordham and minimize transfer taxes, we can help you determine the optimum term to accomplish your goals. Generally, the longer the term, the lower the taxable gift to your remainder beneficiaries and the higher the benefit to Fordham.
Next:
Please 
Will I be able to claim an income tax deduction when I set up my charitable lead trust (CLT)?