Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting the Cincinnati Symphony Orchestra 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 the Orchestra:
A charitable lead annuity trust pays a fixed amount each year to the Orchestra 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 the Orchestra go up as well.
George would like to support the Orchestra 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 the Orchestra 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.
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- Contact Kate Farinacci at 513.744.3202 or email@example.com to talk about supporting the Orchestra by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Orchestra in your plans, please use our legal name and federal tax ID.
Legal Name: Cincinnati Symphony Orchestra
Address: 1241 Elm Street, Cincinnati, OH 45202
Federal Tax ID Number: 31-0537080