2.02.2023

Giving Back with a Charitable Trust

 




This guest post is from Seth J. Craig, Regent Law 3L student:

 

In 2021, Americans gave $484.85 billion to charitable causes. The saying “It’s better to give than to receive” is an adage Christians genuinely embody. A charitable trust is one of the most influential and tax-advantageous methods of giving to charity because it allows the donor to offset taxes. A charitable trust may simplify the donating process and increase your charitable impact while reducing tax liability. In addition, charitable trusts can also be structured to provide a reliable income stream to you and your beneficiaries for a set period depending on your state laws.

A charitable trust allows one to donate assets to a chosen tax-exempt charitable organization or nonprofit. In addition, a charitable trust comes with certain tax benefits to help you minimize what you might owe to the government. However, for Christians, the benefits of a charitable trust extend beyond tax breaks and benevolence because they are an effective legal instrument that allows one to generate a more significant impact for the glory of God.

 A charitable trust helps one to provide for the next generation. God cares about how we use our savings and urges us to view our property as gifts. Establishing a charitable trust can be an essential part of your estate plan and a rewarding way to impact a cause you care about profoundly.

Matthew 6:3-4: “But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you.”

Lastly, establishing a charitable trust is a way to introduce your family to the benefits and responsibilities of charitable giving. The tax breaks are a welcome incentive, but the goal is to create a legacy of giving with your family and community. God entrusted us with his property to distribute wisely. Christians understand that holding money after death indicates we worship elsewhere. What kind of charitable legacy will we leave behind?

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