Charitable Remainder Trusts Custom Designed for You
Of all the ways to provide support to Covenant House, the most sophisticated may be a Charitable Remainder Trust. Charitable remainder trusts can be tailored to meet the widest range of needs and goals. Each trust is individually planned, funded and administered. This individual handling allows the greatest flexibility in the assets used to fund the gift, the type and duration of income, and the ultimate use of the gift by Covenant House. A Charitable Remainder Trust is a personalized, meaningful contribution.
Learn more about Charitable Remainder Trusts.
Remember, when you make this level of commitment, you can choose which Covenant House program will benefit from your generosity; from Street Outreach to Job Training, from Endowment to the Mother/Child program at your local Covenant House…you will impact the lives of our kids for years to come. Your gift can also be left unrestricted to be used at the point of greatest need when the funds become available. The options are almost limitless. See Special Applications of Charitable Remainder Trusts for some ideas.
For more information and assistance, please call Planned Giving toll free at 1-866-COV-HOUSE (That's 1-866-268-4687), or email us at plannedgiving@covenanthouse.org.
Charitable Remainder Trusts provide income to the donor or others, after which the trust remainder will support our mission. But unlike the more simple Gift Annuity, the payments from a Charitable Remainder Trust can be customized to your needs.
- Payments can be fixed or variable to grow with the market.
- Payments can be deferred into the future.
- Payments can stop after a period of years.
- They can continue to you for life, then be transferred to another person for life (or a period of years).
- The payment options are almost unlimited to meet your needs.
Cash or publicly traded stock can be used to establish a Charitable Remainder Trust, as well as a Gift Annuity. But unlike this simpler gift plan, a Charitable Remainder Trust can be funded with developed or undeveloped real estate, all or part of a principal residence, shares of a closely held corporation, tax-exempt bonds, IRA leftovers or even artwork. Virtually any substantial asset that has appreciated in value can be used to good advantage to fund a Charitable Remainder Trust avoiding capital gains tax.
Like the Gift Annuity, Charitable Remainder Trusts usually provide taxable income to the income recipient. But Charitable Remainder Trusts provide the widest range of payment options. Fixed payments or variable payments designed to grow over the years are among the options. In special cases, Charitable Remainder Trusts may provide mostly tax-free income to a donor.
The two types of Charitable Remainder Trust are the Annuity Trust and Unitrust. The Annuity Trust provides fixed payments to the donor, while the Unitrust provides variable payments that are a percentage of the value of the trust assets each year. The structure of the Unitrust provides the greatest number of planning options. See Unitrust or Annuity Trust for a comparison of these plans.
Our Charitable Remainder Trusts receive high quality administration at no cost to the donor or to the trust. Low cost high quality asset allocation and investment selection are obtained through the Vanguard group of mutual funds, with independent evaluation through Morningstar Mutual Fund Service. Donors can choose among a wide variety of highly rated low cost Vanguard funds for the investment of their trust, or can leave the investment choice to our Finance Committee.
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