A charitable remainder trust allows donors to receive income for life or a set number of years, knowing that whatever remains will benefit the community. When donors establish charitable remainder trusts with us, they receive an immediate tax deduction.


Donors may receive a fixed income or payments that change with market conditions. Donors can use the payments to supplement their own lifestyle or that of someone else, like a sibling, a dependent, parent, a friend or a former employee.


Donors can start receiving annuity payments immediately, or defer them to increase the charitable income tax deduction.

Tax Benefits

A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of the annuity paid and the tax deduction received depend on the age of the recipient and the current annuity rate (as established by the IRS).

How a Charitable Lead Trust Works

  1. The donor transfers assets to an irrevocable trust
  2. The donor gets an immediate tax deduction
  3. The trust pays you or the beneficiary regular income payments
  4. When the trust terminates, its final assets support nonprofits through a fund

Learn How to Activate Your Giving Today

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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