Provide for Your Loved Ones and the Towson University Foundation

Charitable Lead Trusts

You can benefit from the tax savings that result from supporting the Towson University Foundation without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.

There are two ways that charitable lead trusts make payments to the Towson University Foundation:

A charitable lead annuity trust pays a fixed amount each year to the Towson University Foundation and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to the Towson University Foundation go up as well.

A Real-Life Example

George would like to support the Towson University Foundation and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to the Towson University Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $873,110. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 2.4 percent charitable midterm federal rate.

Calculate Your Benefits

Submit a few details and see how a charitable lead trust can benefit you.

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Get Started With These Next Steps

  1. Contact Kathleen Hider at 410-704-6287 or khider@towson.edu to talk about supporting Towson University by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Towson University in your plans, please use our legal name and federal tax ID.
Legal Name: Towson University Foundation, Inc.
Address: Towson University Foundation, 8000 York Road, Towson, Maryland 21252-0001
Federal Tax ID Number: 52-0939453