Charitable Lead Trust

Do you want to benefit from the tax savings that result from supporting Action Against Hunger, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the gift tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

There are two ways charitable lead trusts make payments: 

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

A charitable lead unitrust pays a variable amount each year 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 Action Against Hunger go up as well.

You can use the following assets to fund a charitable lead trust:

Cash
You may always use cash to fund a lead trust. Frequently, lead trusts are funded with cash in addition to stock or real estate.

Appreciated Securities
A charitable lead trust may be funded using a single appreciated security or a diversified stock and bond portfolio with high potential for growth over time.

Closely Held Stock
One of the most common assets used to fund a lead trust is closely held stock in a family business that has the potential to grow over the years.

Real Estate
Income-producing real estate is a perfect asset to fund a lead trust.

Next Steps
 

  1. Seek the advice of your financial or legal advisor.
  2. Contact Matt Gordon, Senior Major Gifts Officer, to talk about supporting Action Against Hunger by setting up a charitable lead trust.
  3. If you include Action Against Hunger in your plans, please use our legal name and federal tax ID:

    Legal Name: Action Against Hunger USA
    Address: 1 Whitehall Street, 2nd Fl, New York, NY 10004
    Federal Tax ID Number: 13-3327220

Action Against Hunger is leading a global movement to end hunger in our lifetimes. It innovates solutions, advocate for change, and reach 25 million people every year with proven hunger prevention and treatment programs. As a nonprofit that works across 50 countries, its 8,300 dedicated staff members partner with communities to address the root causes of hunger, including climate change, conflict, inequity, and emergencies. It strives to create a world free from hunger, for everyone, for good.