Protect Your Assets
If you want to make an impact now at Make-A-Wish and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to Make-A-Wish for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.
There are two ways that charitable lead trusts make payments to Make-A-Wish:
A charitable lead annuity trust pays a fixed amount each year to Make-A-Wish and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year to Make-A-Wish 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 Make-A-Wish go up as well.
An Example of How It Works
George would like to support Make-A-Wish 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% of the initial fair market value) to Make-A-Wish 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 $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
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 Deferred Gift Annuities: Plan Now, Benefit Later.
I wish to be a pirate
- Contact Mark Simonson at 800-722-9474, Ext. 6881 or 602-385-6881 (direct) or firstname.lastname@example.org to talk about supporting Make-A-Wish by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Make-A-Wish in your plans, please use our legal name and federal tax ID.
Legal name: Make-A-Wish Foundation® of America
Address: 1702 E. Highland Ave #400, Phoenix, AZ 85016
Federal tax ID number: 86-0481941
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See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.