This formidable sounding term is actually quite simple.
A Charitable Remainder Trust (CRT) is a donation of cash, stocks, or other assets to a non-profit organization. In return, donors receive an annual interest payment on their donations for the rest of their lives.
The Untours Foundation CRT pays 5% annual interest. For example, donors who give $2,000 to our CRT receive an annual income from us of $100. A $10,000 donation results in an annual income of $500.
There are additional benefits as well to donors: a tax deduction plus the waiving of capital gains taxes (if the donation is stock or a similar asset).
The CRT is a contract between the donor and the Untours Foundation and involves no administrative costs. The donated cash or assets remain the property of the Untours Foundation after the death of the donor. By irrevocably transferring the assets to the CRT during her or his lifetime, the donor can significantly reduce inheritance and estate taxes.
Our CRTs are invested in SosteNica, a kindred spirit organization that supports self-reliant projects in Nicaragua through micro-loans.
The fine print: Donors receive a guaranteed annual 5% income on their gifts for the rest of their lives while supporting an organization they love, Untours, and a second organization that they will come to love: SosteNica! Everyone wins including those receiving the micro-loans.