Many community foundations are aware of charitable lead trusts (CLTs) and how they can be used by their donors to make significant recurring charitable contributions to a donor advised fund, a donor designated fund or other form of gift agreement.  This is particularly true in the current historically low interest rate environment. However, because traditional CLTs are more complex to establish and administer due to their focus on estate tax savings (which impacts very few donors), it is very rare for a CLT to actually be established for such purpose.  The exciting news for community foundations is that an iCLAT is designed solely for income tax savings purposes and, therefore, not only is it applicable to exponentially more donors, but it is also easier and less expensive to establish and administer by the donor/client  In other words, an iCLAT has fewer barriers to implementation than traditional CLTs.  This means that an iCLAT is a much more effective way for a community foundation to make a CLT recommendation to its donors who may have a high level of income in a particular year.  Of course, "coupling" a DAF (or a donor-designated fund)  with an iCLAT gives the donor/client’s family additional planning flexibility over the iCLAT's annual charitable payments, in addition to receiving the reversionary interest in all the iCLAT's assets remaining at the end of its term.  LEARN MORE