Solutions for Large Donations
The Advantages of a Charitable Lead Trust
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You can benefit from the tax savings that result from supporting Wesley without giving up the assets 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 Wesley:
A charitable lead annuity trust pays a fixed amount each year to Wesley 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. For example, with a unitrust, if the trust's assets go up in value the payments to Wesley go up as well.
An Example of How It Works
George would like to support Wesley and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to Wesley each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
Calculate Your Benefits
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- Contact David Snow at 206-870-1261 or email@example.com to talk about supporting Wesley by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Wesley in your plans, please use our legal name and federal tax ID.
Legal Name: Wesley Community Foundation
Address: 815 South 216th Street, Des Moines, Washington 98198
Federal Tax ID Number: 91-1732317