Comparing the Benefits

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Comparing the Benefits

Use the links below to compare at a glance the major features of some of the different giving ideas. Your attorney or other professional advisor can help you in evaluating the benefits. Each person’s unique circumstances make different giving plans appealing.

Bequest by Will	Charitable Remainder Annuity Trust	Charitable Remainder Unitrust	Charitable Lead Trust
Revocable Living Trust	Gift Annuity Agreement	Pooled Income Fund	Cash & Appreciated Property

Bequest by Will

Donor Receives:	The satisfaction of knowing that a meaningful gift to Junior Achievement has been arranged.
Tax Savings	Federal estate tax deduction for amount bequeathed to charity.
Other Advantages to the Donor	Opportunity to make a substantial gift to Junior Achievement without depleting funds needed during life. May be revised at any time.
Junior Achievement Receives:	A substantial gift to further its mission.

Charitable Remainder Annuity Trust (CRAT)

Donor Receives:	Fixed annual income to donor and/or other beneficiary(ies). Income amount defined in trust agreement (at least 5% of initial trust assets).
Tax Savings	Income tax charitable deduction for the part of the assets placed in trust that is expected to go to charity. Value of trust assets at death generally deductible from estate for tax purposes.
Other Advantages to the Donor	Asset preservation. Supplement income for the donor or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds.
Junior Achievement Receives:	A substantial gift when the trust terminates. Knowledge of the gift helps charitable entities in planning to meet future needs.

Charitable Remainder Unitrust (CRUT)

Donor Receives:	Variable annual income to donor and/or other beneficiary(ies). Rate of income defined in trust agreement (at least 5% of trust assets).
Tax Savings	Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes.
Other Advantages to the Donor	Asset preservation. Supplement to income of the donor and/or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds.
Junior Achievement Receives:	A substantial gift when the trust terminates. Knowledge of the gift helps Junior Achievement in planning to meet future needs.

Charitable Lead Trust

Donor Receives:	Donor receives no income from the trust. Check with advisors on specific tax treatment of different types of charitable lead trusts.
Tax Savings	In most cases either a current income tax charitable deduction or gift and estate tax deductions.
Other Advantages to the Donor	May provide a means to make a significant gift and have assets returned to donor, or transferred to loved ones at reduced cost.
Junior Achievement Receives:	Either fixed or variable payments for the term of the trust.

Revocable Living Trust

Donor Receives:	Income earned by trust may be paid to donor, charity, or other(s).
Tax Savings	No income tax benefits (unless income goes to charity). When property passes to the charitable beneficiaries at death of donor, estate tax deduction applies against any applicable federal estate tax.
Other Advantages to the Donor	Opportunity to change the trust (and gift), if desired. Avoidance of probate. Opportunity for professional management of assets in trust.
Junior Achievement Receives:	A substantial gift, in many cases larger than the donor could comfortably give otherwise.

Gift Annuity Agreement

Donor Receives:	Fixed annual payments to donor and/or other beneficiary. Rate of payment based on age(s) of annuitant(s).
Tax Savings	Income tax charitable deduction for part of funds transferred. Payments partially tax-free for a time.
Other Advantages to the Donor	Donor or other annuitant receives supplement to income.
Junior Achievement Receives:	A portion of the amount used to fund a gift annuity will be used to further the work of Junior Achievement.

Pooled Income Fund

Donor Receives:	Variable annual income based upon a pro rata share of the pooled investments of the trust.
Tax Savings	Income tax charitable deduction for calculated value of gift to the charitable organization. Value of fund units generally deductible from estate for tax purposes.
Other Advantages to the Donor	Possibility that income payments may increase over time.
Junior Achievement Receives:	Distributions from the pooled fund at the death of income recipient.

Cash & Appreciated Property

Cash	Convenient and accessible.	Income tax deductible for itemizers up to 50% of adjusted gross income (AGI). Any excess is deductible over the next five years.
Appreciated Property	Conserves cash for other uses.	Income tax deductible as above, but up to 30% of AGI. Capital gains tax not incurred; full value of asset is deductible.