Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at NPH USA 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 NPH USA 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 NPH USA:

A charitable lead annuity trust pays a fixed amount each year to NPH USA and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to NPH USA 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 NPH USA go up as well.

An Example of How It Works

Father smiling with children George would like to support NPH USA and receive tax benefits. George received a windfall amount of income and needs a large income tax deduction to offset the tax he owes on the windfall. 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 NPH USA 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 $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Examples of Assets to Include in Your Trust

Calculate Your Benefits

Submit a few details and see how a charitable lead trust can benefit you.

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Next Steps

Contact Chuck Allworth at 312-386-7475 or callworth@nphusa.org to talk about supporting NPH USA by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor.
If you include NPH USA in your plans, please use our legal name and federal tax ID.

Legal name: Friends of the Orphans
Address: 20 North Wacker Drive Suite 4000, Chicago, IL 60606-3193
Federal tax ID number: 65-1229309

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.