Types of Trusts

Charitable Remainder Trusts (CRTs)

A donor may transfer assets to a charitable remainder trust that provides a specified distribution percentage to one or more (income) beneficiaries for life, or a term of years, with the remainder interest paid to charity. There are two kinds of CRTs:

• Charitable remainder unitrust. A CRUT requires annual revaluation of the trust assets — which typically changes the value of the unitrust payment — and allows donors to make additional gifts to the trust.

• Charitable remainder annuity trust. The income beneficiary of a CRAT receives a fixed amount that is determined when the trust is established.  A CRAT does not allow donors to make additional gifts to the trust.

Charitable Lead Trusts

A donor may transfer assets to a charitable lead trust. A charity is the income or “lead” beneficiary for a lifetime or term of years, after which the remaining assets are distributed to the donor or other beneficiaries.

Gift Annuities

A charitable gift annuity is a contract between a charity and a donor. In return for a donation of cash or other assets, the charity agrees to pay the donor — and/or someone designated by the donor — a fixed payment for life. The donor can claim an immediate charitable tax deduction for the amount of transfer above the value of the annuity purchase.

If a donor funds a gift annuity with long-term capital gain property — e.g., with appreciated stock — the donor will report only some of the gain, and may be able to report it in installments over many years. Donors can also establish a deferred charitable gift annuity to defer receiving income from the gift annuity for a period of years.

OCF will consider issuing gift annuity contracts for annuities originating in Oregon that meet these guidelines:

• Minimum age of the annuitant is 60 (55 for deferred gift annuities).
• Annuity rate does not exceed the rate published by the American Council on Gift Annuities.
• Minimum gift amount is $25,000.

Staff Assistance

If you would like more information about establishing a charitable trust or gift annuity, please contact:

• David Westcott, senior vice president for development: dwestcott@oregoncf.org or 541.431.7099

If you are the donor or beneficiary of an existing trust, please contact:

• Chris Vitron, fund services officer: cvitron@oregoncf.org or 503.944.2130. (Chris can also provide you with online access to your trust or annuity account at the Kaspick & Company website.)