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Charitable Remainder Trusts

Annual Income in Exchange for Your Gift
Plus Other Benefits

With a Vanderbilt charitable remainder trust you can:

  • Earn an annual income of at least five percent.
  • Claim an immediate charitable income tax deduction that will offset other income.
  • Participate in the total returns of Vanderbilt's general endowment.
  • Enjoy the potential of rising income from year to year.
  • Convert low-yielding assets into a strong stream of income for life, without paying capital gains tax.
  • Provide your family or friends with financial security.
  • Have a remarkable influence at the university.

How a charitable remainder trust works:

  1. You transfer cash, stock, mutual funds or real property to an irrevocable trust.
  2. You claim a current charitable income tax deduction.
  3. When funding your remainder trust with appreciated property, you pay no capital gains tax.
  4. You can design your trust to last for life or for a term of years such as five, 10 or 20 years.
  5. You choose the other beneficiaries who can receive annual income payments – either jointly with you or on another schedule.
  6. When your trust terminates, the balance ("remainder") is given to Vanderbilt as your gift to support an area of your choice, such as scholarships, faculty support and chairs, academic programs, research and more.
Unitrust graphic
For example, Mr. Commodore donates $100,000 worth of appreciated stock to set up his Vanderbilt trust.

Amount donated to trust

$ 100,000  (500 shares of IBM)

Mr. Commodore’s cost basis

$ 35,216  (estimated)

Capital gains tax saved

$ 9,718  ($ 64,784 capital gain x 15% rate)

Tax deduction

$ 52,546 (saves $ 14,713 in tax at 28% rate)

Annual income paid to Mr. Commodore

$ 5,000  (variable)

When the trust term ends, the remaining principal goes to Vanderbilt to support Mr. Commodore’s area of choice.

Charitable Remainder Unitrust Frequently Asked Questions

Your Planned Giving team can provide illustrations for your specific circumstances and goals. To learn more about life income gift opportunities, please contact the planned giving office at (615) 343-3113 or email plannedgiving@vanderbilt.edu.