The Cradle uses The Chicago Community Trust for donors who would like to benefit The Cradle with a Charitable Gift Annuity (CGA). Donors make a gift of principal from which they receive fixed life income payments. The minimum gift is $10,000 and the annual payments depend upon the donor’s age and current federal interest rates. Donors receive a tax deduction for the principal gift, income for life, and know they are supporting the mission of The Cradle.
An apple tree is a perfect analogy to explain two common charitable gifts – a lead trust and a remainder trust. A "charitable lead trust" is a trust that provides payments for a fixed number of years, and at the end of that period, the trust terminates and the assets pass to the donor’s living beneficiaries. This is an example of giving the apples and keeping the tree: Sam gives $10,000 to a charitable lead trust he established, which provides an 8% donation to The Cradle each year for 10 years. After 10 years, the trust terminates and its remaining assets pass to Sam’s designated children or grandchildren.
A "charitable remainder trust" is a trust that provides payments of income and/or principal to one or more designated beneficiaries for a fixed number of years or for life. At the end of the period, the remainder of the trust assets will pass to The Cradle. This is an example of keeping the apples and giving the tree: Sam gives $10,000 to a charitable remainder trust he established, which provides 5% of its value to Sam’s son, Jim, during Jim’s lifetime. Upon Jim’s death, the trust will terminate and all the trust assets will pass to The Cradle.
Ask your financial advisor how you can benefit your family and The Cradle with a CGA or charitable trust.
For more information, contact The Cradle's Development Office at 847.475.5800 or email firstname.lastname@example.org.