Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting Northern Illinois Food Bank 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 Northern Illinois Food Bank:
A charitable lead annuity trust pays a fixed amount each year to Northern Illinois Food Bank 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 Northern Illinois Food Bank go up as well.
An Example of How It Works
George* would like to support Northern Illinois Food Bank and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to Northern Illinois Food Bank each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $686,160. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,619,706 at the end of the trust term.
*These examples are for illustrative purposes only, to maintain the privacy of our donors.
**Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
- Contact Gina Gramarosso at 630-443-6910, ext. 130 or email@example.com to talk about supporting Northern Illinois Food Bank by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Northern Illinois Food Bank in your plans, please use our legal name and federal tax ID.
Legal Name: Northern Illinois Food Bank
Address: 273 Dearborn Court, Geneva, IL 60134
Federal Tax ID Number: 36-3203648
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
Calculate Your Benefits
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