Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at The College of New Jersey Foundation, Inc. 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 The College of New Jersey Foundation, Inc. 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 TCNJ Foundation:

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

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

* State law and regulation prohibit The College of New Jersey Foundation (TCNJ Foundation) from providing estate planning and tax advice, including assistance in establishing or offering a charitable remainder or charitable lead trust (CRT/CLT). Our planned giving office can provide illustrations for your consideration only.

TCNJ is also not permitted to provide any legal documents that trusts require. You should consult with a qualified attorney and/or planning professional.

Discover More

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

An Example of How It Works

Father smiling with children George would like to support TCNJ Foundation 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 TCNJ Foundation 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.

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Next Steps

Contact Jim Spencer, CAP® at 609-771-3285 or jspencer@tcnj.edu to talk about supporting TCNJ Foundation by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor.
If you include TCNJ Foundation in your plans, please use our legal name and federal tax ID.

Legal name: The College of New Jersey Foundation, Inc.
Address: 2000 Pennington Road, Ewing, NJ 08628-0718
Federal tax ID number: 22-2448189