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A charitable remainder annuity trust requires irrevocable transfers of assets to a trustee (often the charity), which administers the trust and makes the required payments.
A specified percent of the initial net fair market value is paid annually to designated income beneficiaries; the principal remaining at the death of the beneficiaries or at the end of the trust's term passes to the Foundation. The Foundation will act as trustee or successor trustee if named sole beneficiary of the trust.
Criteria for participation:
When the Foundation acts as trustee:
 Suggested minimum gift of $100,000
Fixed dollar amount paid annually
Not less than 5 percent
Additions: Not allowed by law
Payment percentage is negotiated with each donor
and varies based on donor's needs and beneficiary's age.
Gift acceptance policies for individual types of assets apply.
When the Foundation is not the trustee:
No minimum gift amount required by the Foundation.
Arrange for discussion between the Foundation and the
donor's counsel.
Gift acknowledgment:
Fully funded charitable remainder annuity trusts are recognized at the contribution's full value. The contribution deduction and receipt amounts are determined by a calculation of the present net value of the gift.
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