Not a good time for a charitable gift? Okay, how about a loan?

Hmmm, a loan... 'You want me to make a loan to my alma mater (or other favorite charity)?'  

YES!

Okay, so it goes by another  name - but that's the idea.

Here's  how it works:

You want to do something for your alma mater, say - and, something that can really make a difference.  BUT, you have a family to worry about - children or grandchildren.... their college educations, their first homes, their first business venture's capital.  You have some money available  right now, sure - BUT, they will need it in 15 or  20 years.  If you give it away now, you'll have nothing for them later.

Ah, that's the dilemma.

Here's the solution:

Two simple steps - First, you put the assets you know you want your children (or grandchildren) to have in 15 or 20 years (or however many years you wish) into a trust - so that the assets are safe and secure - and, will be there for them when they need it.  And, at the same time, you name your alma mater (or other favorite charity) to receive an annual gift from the earnings derived each year from the assets in this trust - a special gift each and every year until the trust is scheduled to terminate so that the assets go to your children (or grandchildren).

These annual distributions from the trust to your alma mater can make a big impact.

Plus, of the assets in the trust appreciate at a rate higher than the annual payout for the charitable gifts, then your children (or grandchildren) will end up with MORE at the end of the trust than you put into the trust initially - and, whatever the amount - they will  receive it free of taxation, if you design the plan well.

AND, you'll enjoy a few serious tax-wise benefits from this plan.

Hard to create?  No, actually it can be quite a simple thing to do.  

Do you have to be a Vanderbilt or a Carnegie for this to make a difference?  Not at all!

It just may be the thing that can add great value - in your life, for your family - and, for your alma mater (or other favorite  charity).

PS TO ENTREPRENEURS - The kind of arrangement described above can be a creative strategy for conveying a privately held business to the family's next generation.  This trust - which is called a Charitable Lead Trust - and a Family Limited Partnership - can offer - when structured strategically - an effective way to achieve valuable family and philanthropic objectives. Something worth considering.