Solutions Center
 for Charities

FROM THE RECIPIENT CHARITY'S PERSPECTIVE, AN iCLAT SHOULD BE CONSIDERED AS AN "ENHANCED" PLEDGE ARRANGEMENT, AND COMMUNICATED AS SUCH WITH ANNUAL DONORS (BOTH CURRENT & PROSPECTIVE)!   

  • An iCLAT is like a "pledge arrangement" because it provides recurring annual gifts to charity. 

  • An iCLAT is "enhanced" because it will provide your valued annual donors with a very large IMMEDIATE current year charitable income tax deduction.

  • The IMMEDIATE charitable tax deduction generated by an iCLAT is so large that it's almost equal to the total sum of the iCLAT's annual gifts to your charity.  Just take a look at the chart below!

92.1%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $500,000 to charity) will generate a $460,355 Year 1 charitable deduction for the client/donor!

20 Year iCLAT 

93.9%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $375,000 to charity) will generate a $352,050 Year 1 charitable deduction for the client/donor!

15 Year iCLAT 

95.7%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $250,000 to charity) will generate a $239,343 Year 1 charitable deduction for the client/donor!

10 Year iCLAT 

97.6%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $125,000 to charity) will generate a $122,055 Year 1 charitable deduction for the client/donor!

5 Year iCLAT 

98.4%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $75,000 to charity) will generate a $73,816 Year 1 charitable deduction for the client/donor!

3 Year iCLAT 

iCLAT Term

(# of Years)

% Year 1 Charitable Deduction

(*Based on the SUM of the iCLAT's Annual Payments to Charity) 

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

Many charities that sponsor of donor advised funds (DAF's) are well aware that charitable lead trusts (CLTs) are compelling planning tools that individuals can utilize to fund DAFs on a significant annual basis.  This is particularly the case 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 people, it is very rare for a CLT to actually be established for such purpose.  The exciting news for DAF sponsors is that an iCLAT is designed solely for income tax savings purposes and, therefore, it is applicable to exponentially more clients.  It is also easier and less expensive to establish and administer by the 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 DAF sponsor 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 with an iCLAT gives the client (and his family) the ability to utilize the ongoing grant-making advisory control/timing/privacy privileges in the family's DAF, with respect to the annual charitable distributions it receives from an iCLAT.   LEARN MORE

GREATER IMMEDIATE

TAX SAVINGS FOR

YOUR VALUED

ANNUAL DONORS 

+

GREATER RECURRING ANNUAL REVENUES SECURED FOR

YOUR CHARITY

=

COMMON MISCONCEPTIONS CHARITIES HAVE ABOUT 

CHARITABLE LEAD TRUSTS (CLTs) 

"ALL charitable lead trusts are complicated planning tools and very difficult for a donor to actually establish."

DIVE

DEEPER

IDEAL DONOR

SCENARIOS

Click here to learn about the ideal scenarios when an iCLAT will work best for your current and prospective donors. 

SCHEDULE A

FREE CALL

Our President - Brad Gornto provides free one-on-one calls at specified times each week.    Click here to schedule a call.

GOT A

QUESTION

Send us your question.  Our team will promptly reply and answer your question, normally within 1 business day.

BEST STATES

FOR iCLATs

Click here to see the  States where an iCLAT will generate the greatest ADDITIONAL SAVINGS at the State income tax level.

FREE WEBINAR

SIGN-UP

Our President - Brad Gornto gives FREE webinars for charities several times each month.  Click here to sign-up for a webinar.

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