Charitable Remainder Trusts

When you choose a Charitable Remainder Trust (CRT) as a means of supporting the mission of Sigma Xi, Sigma Xi will receive the corpus or principal of the trust after you have passed away or after a designated term of years, whatever the trust stipulates.

How it Works
The donor transfers appreciated assets into the trust. The trustee will generally sell the appreciated asset to form the "trust fund." The trustee will then invest the trust funds and pay out income from the trust to the beneficiaries of the trust. The income is paid at a fixed rate during the lives of the beneficiaries or for a fixed term of years, as determined by the donor's plan when the trust is established. Typically, the income beneficiaries are the donor and, in many cases, the donor's spouse. When the income beneficiaries have passed away, the trust comes to an end. The remainder, which includes the original trust principal and any accumulated earnings, passes to Sigma Xi as a gift.

How a CRT Benefits the Donor
Avoidance of Capital Gains Tax: Because the assets that you transfer to the trust are destined for Sigma Xi (a qualified 501(c)3 charitable organization) the trust does not pay any capital gains tax on the appreciated assets. Consequently, the full value of your donated assets can ultimately be put to use of the benefit of Sigma Xi while allowing you to maintain a fixed income as a beneficiary of the trust during your life, or during a fixed term of years determined by you when the trust is established.

Charitable Deduction: In addition to favorable capital gains treatment, because the funds eventually benefit a charitable organization, the donor qualifies for a charitable deduction. The amount of this deduction varies depending on individual circumstances and the type of appreciated property that is placed in trust. As you move to create a CRT, you should consult with a tax professional.

Income Stream: Throughout the term of the trust the income beneficiaries receive an income stream generated by the trustee's earnings on the trust principal. The income is paid at a fixed rate, which is determined when the trust is created.

How a CRT Benefits Sigma Xi
When the trust comes to an end and the remainder of the trust passes to Sigma Xi, your generous gift will allow Sigma Xi to continue to support scientific and engineering disciplines through American Scientist, educational programs, early career support and national and international science and engineering networks.

For information related to implementing a CRT, please contact Sigma Xi's Development Office: 800-243-6534, or development@sigmaxi.org.

This information, by its very nature, provides only a generalized discussion of Charitable Remainder Trusts as a tax and gift planning tool. You should consult your lawyer and/or tax professional as you consider the consequences of your gift on your tax and estate planning needs.

Sigma Xi is a 501(c)(3) not-for-profit. All donations made are tax-deductible.
EIN available upon request