Types of Charitable Giving?
There are several ways to help donors align their charitable goals with tax and estate planning strategies.
*The specific rules, costs, and features can vary, so it's essential for donors to understand the details of each option before making a Charitable Donation Plan. This is for educational purposes, please seek the advice of a tax professional before making any decisions. Please note that the gift is irrevocable and can not be taken back.
How to Contribute
Charitable giving through a Charitable Remainder trust or Donor-Advised Fund can allow donors to claim deductions, reduce taxable income, and potentially minimize estate taxes when contributions are made strategically and in compliance with Oregon Nonprofit Corporation Law (ORS Chapter 65) and the Charitable Trust and Corporation Act (ORS 128.610 to 128.750).
Charitable Remainder Trusts (CRTs)
A trust structure where assets are donated, and the donor or their beneficiaries receive an income stream for a specified period. The remainder goes to charity.
Donor-Advised Funds Giving 360 (DAFs)
An account that allows donors to make contributions, receive immediate tax deductions, and recommend grants to charities over time.
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Income Stream: Can provide a steady income for the donor or designated beneficiaries during the trust’s term.
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Tax Advantages: Offers an immediate charitable tax deduction and defers capital gains taxes when appreciated assets are donated.
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Estate Planning Benefits: Reduces taxable estate, potentially lowering estate taxes while supporting philanthropic goals.
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Customizable: Can allow flexibility in structuring income payouts and selecting charities as beneficiaries.
The Details
Features | CRT | DAF |
|---|---|---|
Primary Purpose | Income stream + charitable giving | Charitable giving with flexibility |
Setup Costs | $3,000 to $7,500 (legal/admin fees) | $0 |
Ongoing Costs | ~1% (admin + investment fees) | 0.60% admin + investment fees |
Tax Deduction | Present value of remainder interest | Full fair market value |
Capital Gains Tax | Deferred on CRT asset sale | Eliminated on asset donation |
Income Stream | Yes (5%+ annually) | No |
Flexibility | Moderate (fixed terms, irrevocable) | High (decide grants anytime) |
Paperwork | Significant (legal + admin) | Minimal |
Ease of Use | Moderate to High | Very High |
Estate Tax Benefits | Reduces taxable estate | Reduces taxable estate |
Control Over Investments | Yes (trust-managed portfolio) | Yes (DAF investment options) |
Charitable Grants | Delayed until trust terminates | Immediate or over time |
Oregon Specific Examples
How can my charitable donations benefit Oregon?
Supporting a Community
An Example of a CRT
When creating a Charitable Remainder trust or Donor-Advised Fund, the donor can specify which charity they'd like to grant their assets towards.
Mark, a lifelong Springfield resident, cherished the McKenzie and Willamette Rivers. Nearing his sixties, he partnered with T. Mann Financial to establish a Charitable Remainder Trust. This trust would support fish habitats, improve water quality, and enhance public access to the rivers. At Island Park, Mark shared his vision with his friends and family, explaining how the trust aligned his values with his financial goals. Standing by the shimmering Willamette, he felt deep fulfillment. His trust would not only safeguard Oregon’s natural beauty but also inspire others to protect the resources that shaped their lives. For Mark, it was the perfect way to give back while securing his own future with a steady stream of income.
Leaving a Legacy
An Example of a DAF
Betsy, a 90-year-old from Eugene, Oregon, spent her life giving back to her community. From volunteering at her church to helping stock shelves at FOOD for Lane County, she found joy in supporting others. Reflecting on her legacy, Betsy partnered with T. Mann Financial to establish a Donor-Advised Fund (DAF), allowing her to recommend grants to her favorite causes, including her church, several missions, and environmental conservation efforts through the McKenzie River Trust. Through her DAF, Betsy ensured her values would continue shaping Eugene and Springfield. Betsy felt a profound sense of peace. Her legacy was secure—a lasting testament to her love for Oregon and its vibrant community.
How T. Mann Financial Can Help
Maximize your deduction. Support a meaningful cause.
T. Mann Financial's Role in the Process
We Help Design the Plan
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Charitable pathway selection (CRTs vs DAFs)
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Platform selection (ex. Schwab)
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New account opening
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Contributions strategy
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Funding your new account
Ongoing Management
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Investment management
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Assistance in selecting charities (there are more than a million to choose from)
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Fund distribution to charities
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Tax document assistance
Leaving a Legacy
If the account has more than $100,000 at the time of your passing, we will be able to continue your gift giving plan.