Contents

C H A P T E R F I V E5Fundamentals of Planned Giving§ 5.1 Introduction 146§ 5.2 Appreciated Property Gifts 146§ 5.3 Planned Gifts: CoreConcepts 147§ 5.4 Charitable RemainderTrusts 149(a) General Rules 149(b) Charitable RemainderAnnuity Trusts 150(c) Charitable RemainderUnitrusts 152(d) Tax Treatment ofDistributions 153(e) Tax Treatment ofCharitable RemainderTrusts 154(f) Remainder TrustAgreements 154(g) Gift Tax Aspects 155(h) Estate Tax Aspects 155§ 5.5 Pooled Income Funds 155(a) General Rules 156(b) Valuation andAssignment of Units 157(c) Distribution of Income 158(d) Determining theCharitable Deduction 159(e) Tax Treatment of IncomeDistributions andPooled Income Funds 159(f) Selection of Trustee 159(g) Pooled Income FundInstruments 160(h) Seeding 161§ 5.6 Charitable Gift Annuities 162§ 5.7 Charitable Lead Trusts 162(a) General Rules 163(b) Income Tax CharitableDeduction (If Any) 164(c) Determining theCharitable Deduction 164(d) Tax Treatment of LeadTrust 164(e) Testamentary Use ofLead Trusts 164(f) Private Foundation Rules 165§ 5.8 Planned Giving: OtherForms 165§ 5.9 Planned Givingand Securities Laws 166An analysis of the law of charitable giving would be incomplete without substantialattention to the various forms of planned giving. At the same time, thereis more to the law of charitable giving than planned giving. The purpose of thischapter is to place the concept of planned giving in its appropriate context. Thechapters of Parts Two and Three can be read with this concept in perspective.The details of planned giving are the subject of Part Four.Planned giving has, over the years, been made to seem deeply mysteriousand very complicated, with the result that managers of many charitable organizations,and those who assist them in the fundraising process, are fearful of it. 145