Charitable Lead Trust

If you want to make an impact now at Dana-Farber and the Jimmy Fund 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 Dana-Farber and the Jimmy Fund 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 Dana-Farber and the Jimmy Fund:

A charitable lead annuity trust pays a fixed amount each year to Dana-Farber and the Jimmy Fund and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to Dana-Farber and the Jimmy Fund 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 Dana-Farber and the Jimmy Fund go up as well.

An Example of How It Works

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

Contact the Planned Giving team at 800-535-5577 or planned_giving@dfci.harvard.edu to talk about supporting Dana-Farber and the Jimmy Fund by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor.
If you include Dana-Farber and the Jimmy Fund in your plans, please use our legal name and federal tax ID.

Legal name: Dana-Farber Cancer Institute, Inc.
Address: 450 Brookline Avenue, Boston, MA 02215
Federal tax ID number: 04-2263040

Discover More

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