Charitable Trust Fund
A charitable trust fund is one way of ensuring that your money is being given to charity in exactly the way you wish, no matter how small or large the asset. It can be set up by any individual who wishes to set aside some income or assets for one or numerous charities. Because a trust is a legal entity in its own right, you can rest assured that assets signed into a charitable trust fund will reach your chosen charity. Charitable trust funds are also exempt from certain taxes so may provide a more tax efficient method of giving.
Setting Up A Charitable Trust Fund
Starting your own charitable trust fund if one way of managing exactly how your donations are given. Because a charitable trust is independent of the government you can exercise complete control of how much and which charities will receive the money. You may choose to donate to a cause specific to your heart, one charity or a group of charities but they must all be for public benefit.
A basic charitable trust fund usually follows a simple model of:
- A 'settlor' or donor which could be you, your family or a business, who sets up the initial trust.
- A set of trustees which again could be you or family. These people will control the trusts assets and decide on the the charitable purposes of the trust. Involving family members is usually done to instill a shared commitment to giving.
- The beneficiaries. In the case of a charitable trust, this will be the charity or charities chosen who will eventually benefit from the assets.
- Its charitable purposes and trust deed. A legal outline of the trust's purposes, aims, powers and responsibilities of trustees and the trust's situation in case of the death of the settlor.
Setting up a charitable trust fund is one way of creating an enjoyable and worthwhile form of giving. It may be best to seek the help of a financial advisor who can help set up a trust and advise on the best way of dealing with legal paperwork. Similarly, if your charitable trust fund has grown over the years it may also be beneficial to assign the help of an impartial and independent financial advisor:
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