A Gift That Gives Back

Protect Your Assets

If you want to make an impact now at the Culinary Institute of America 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 Culinary Institute of America 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 CIA:

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

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

An Example of How It Works

Father smiling with children James would like to support the Culinary Institute of America and receive tax benefits. James received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, James funds a grantor charitable lead annuity trust with assets valued at $1,000,000. James’ trust pays $60,000 (6% of the initial fair market value) to CIA each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to James, who receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, James 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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Learn How

Contact Beth Kramer, Vice President of Development and Alumni Relations, at 845-451-1460 or Beth.Kramer@culinary.edu to talk about supporting the Culinary Institute of America by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor.
If you include the Culinary Institute of America in your plans, please use our legal name and federal tax ID.

Legal name: The Culinary Institute of America
Address: Hyde Park, NY
Federal tax ID number: 06-0653264

Discover More

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

Charitable Lead Trust