A charitable lead trust allows donors to pass assets to their children or grandchildren with minimum gift and estate tax liability, while simultaneously building a fund that supports a cause that matters to them.


The trust shelters investment earnings from tax and offers gift, estate, and generation-skipping tax benefits. Donors may also capture future gift tax deductions. When the trust’s final assets are transferred to beneficiaries, there are often significant transfer-tax savings.

How a Charitable Lead Trust Works

  1. The donor transfers assets to an irrevocable trust
  2. The trust shelters investment earnings from their tax and offers gift, estate and generation skipping tax benefits
  3. The trust builds a charitable fund at the Philadelphia Foundation
  4. The fund makes grants to nonprofits
  5. When the trust terminates, its final assets are transferred to designated beneficiaries

Learn How to Activate Your Giving Today

To learn more about the Philadelphia Foundation, call us at (215) 563-6417 or email us.

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