Many find contributing appreciated property, particularly securities, a financially advantageous option. Because the property is transferred directly to Wharton, the donor pays no capital gains tax while receiving a tax deduction equal to the property's fair market value. A charitable remainder trust allows you to receive an immediate tax deduction for your gift to Wharton and provides life income to one or more beneficiaries. The School offers two types of charitable remainder trusts . In both, you decide at the time of establishing the fund how much will go toward the beneficiary's annual payments.
Some donors choose charitable remainder annuity trusts because they pay a fixed dollar amount.
Others like charitable remainder unitrusts because they pay a fixed percentage of the fair market value of the trust's assets. As a unitrust grows with time, it offers a hedge against inflation with growth in income. Donors can let the University of Pennsylvania manage the fund or appoint an independent asset manager. You can take immediate payments or delay those payments for a number of years while claiming the tax deduction today. The latter is an attractive option for younger donors who need tax deductions but not extra income now.