Provide for Your Loved Ones and Towson University

Charitable Lead Trusts

You can benefit from the tax savings that result from supporting Towson University 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 Towson University:

A charitable lead annuity trust pays a fixed amount each year to Towson University 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 Towson University go up as well.

A Real-Life Example

George would like to support Towson University 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 Towson University 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 $854,311. 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 3.2 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 the Towson University Foundation by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the Towson University Foundation 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