Give and Ye Shall Receive — What Every Athletic Administrator Should Know about the Advantages of Charitable Giving through Charitable Remainder Trusts

  • Janet S. Fink University of Texas
  • Jane Fink-Silver Drew & Ward Law Firm

Abstract

Intercollegiate athletic administrators rely heavily on fundraising efforts to defray the increasing costs of their operations. In fact, donor giving accounts for 16% of athletic departments’ budgets (Fulks, 1998). Thus, it is imperative that athletic administrators are aware of charitable giving options available to potential donors. The purpose of this paper is to fully describe one of these options, the charitable remainder trust (CRT). CRTs as a part of a planned giving program could provide athletic departments with hundreds of thousands of dollars while simultaneously providing the donor with significant advantages not found in other gift giving options. This paper describes different types of CRTs, including the charitable remainder annuity trust (CRAT) and the charitable remainder unitrust (CRUT). A hypothetical example is furnished to demonstrate the advantages provided to the donor by establishing a CRT. These advantages include: a) an immediate income tax deduction, b) the ability to diversify assets, c) immediate capital gains savings and an increase in lifetime income, d) a reduction in estate taxes, and e) immediate acknowledgment of the charitable contribution. Some potential disadvantages are also noted and discussed.
Published
1999-01-31
Section
Research