These trusts are vehicles which allow you to contribute to Robin Hood while providing income for yourself and/or another person. They are managed separately and can be tailored to meet your specific financial needs and investment objectives. A charitable remainder trust is established by irrevocably transferring assets to a trustee to be managed and invested. You – or someone you designate as a beneficiary – will receive income payments for life or a term of years not to exceed 20 years. The income is either a fixed-dollar amount or a fixed percentage of the trust principal as revalued annually. Upon the death of the beneficiary or the conclusion of the term of years, the trust's remaining assets will transfer to Robin Hood for its general purposes or for the use specified by terms of the trust instrument.

Depending on how the trust is invested, the payments you receive may consist of ordinary income, capital gains income, tax-free income, or return of principal. When you establish a charitable remainder trust, you are entitled to an immediate charitable income-tax deduction for a portion of the value of the donated assets. The size of the deduction equals the projected value of the "remainder interest," at the time the trust terminates. The deduction is calculated by an IRS-prescribed formula, which takes into account the age and number of beneficiaries, the annual rate of payout, a federal discount rate, and the type of trust. It should be noted that if appreciated property is used to fund the trust, you may reduce or even eliminate payment of capital gains tax on the appreciation. The CRT is entitled to sell the property and reinvest the proceeds to generate a return.

There are two different kinds of charitable remainder trusts: the charitable remainder unitrust and the charitable remainder annuity trust. Robin Hood requires a minimum contribution of $25,000 to establish a CRT.

To learn more about charitable remainder trusts, please contact Katie Martin at Martin@robinhood.org or 212-227-6601.