CRUs are income funds in which donated assets are held and invested in a separate account and are not pooled with other donations. Donors stipulate a fixed percentage (not less than five percent) of the value of the fund to be distributed annually to income beneficiaries. Income may continue for the lifetimes of the beneficiaries named, a fixed term of not more than 20 years, or a combination of the two. Payments are made out of trust income, or trust principal if income is not adequate. When the CRU term ends, the principal passes to AIER for its charitable programs. Donors may add funds to their CRU at any time.
The donor may also stipulate that distributions are to be up to “income only,” with or without a further stipulation that any shortfall of actual income received by the funds from the fixed percentage be “carried forward,” and be available for distribution in subsequent years in which the actual income is in excess of the fixed percentage.
How CRUs work:
- You transfer cash, securities, or other property to a Charitable Remainder Unitrust.
- You receive an income tax deduction and pay no capital gains tax. During its term, the trust pays a percentage of its value each quarter to you or to anyone you name.
- When the trust ends, its remaining principal passes to benefit AIER.
The trustee of a CRU need not be AIER itself (although most of our donors have requested AIER to serve as trustee).
Call the Planned Giving Office at 413-528-1216 x3153
or email [email protected] for more information.