At the end of that time, the principal returns to the donor or people designated by the donor. The charity receives the remainder at the beneficiary's death. No additional contributions are allowed. Appreciated assets are not subject to capital gains taxes. They are complex, expensive to administer, and have very high minimum requirements to open.
Many people choose community foundations that operate within a specific geographic area.
A full deduction generally is available in the year of donation. The charity receives the donor's proportional share at the donor's death. Additional contributions are allowed. Appreciated assets are not subject to capital gains taxes. The current income tax deduction is determined by actuarial tables.