Protect Your Assets
Charitable Lead Trusts Offer You Options
You can benefit from the tax savings that result from supporting Iowa State University 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 Iowa State:
A charitable lead annuity trust pays a fixed amount each year to Iowa State 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 Iowa State go up as well.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide
An Example of How It Works
George would like to support Iowa State 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 Iowa State 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.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
- Contact the office of gift planning at 800.621.8515 or firstname.lastname@example.org to talk about supporting Iowa State by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include Iowa State in your plans, please use our legal name and federal tax ID.
Legal Name: The Iowa State University Foundation
Address: 2505 University Boulevard, P.O. Box 2230, Ames, IA 50010-2230
Federal Tax ID Number: 42-1143702
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
For more information, please contact any member of our gift planning staff: Rob Kinsey, Kelly Allen, Rhonda Fitchett, Alyssa Ehrich, Gregg Hinders or Sandy Clarke.