Endowment

Introduction

Homenetmen Glendale "Ararat" Chapter came into existence because of a Vision. It is a living testimony to what can be accomplished when people have a vision and generate the will to bring it to fulfillment. "Ararat" strives to provide all we can for our children today in return for great citizens tomorrow.

Homenetmen "Ararat" Endowment Fund has one objective: to support activities not just for one year, or even one decade, but for generations. By their very nature, endowment funds require the balancing of current and future needs.

With the tools and techniques available in today’s business world, Homenetmen "Ararat’s" Endowment Fund is reaching out to our supporters to help us by providing a steady, sustainable, and predictable flow of funds to support current operations.

The Donor

A Charitable Lead Trust (CLT) takes property from the donor's estate, distributes the income to a charity, and passes the balance of its assets to the heirs at the donor’s death. Thus, property that produces or could produce taxable income is removed from the estate and replaced with a charitable deduction. The charitable deduction is for the present value of the income interest given to the charity. IRS rates and tables help to determine the present value of the income interest. The property used for this gift is usually property that would involve a sizable capital gains tax if sold and converted to income producing property.

CLT or Charitable Lead Trust

The Charitable Lead Trust (CLT) accepts gifts of property. Income from the Charitable Lead Trust (CLT) must be paid at least annually to the charity. At the death of the donor or donors, the balance of the trust would pass to the designated beneficiary in accordance with the trust terms.

The ideal property transferred to a Charitable Lead Trust is property that can generate sufficient income from the charitable beneficiary.

The value of the Charitable Lead Trust (CLT) at the death of the donor or donors passes to the beneficiaries in accordance with the trust terms. (The actual value of whatever remains in the trust is what the beneficiary receives). The value of the property transferred to the trust less the IRS calculated value of the charity’s income interest.

Economic Benefits to the Donor(s):

Removal of taxable income from the Estate and receive charitable deductions from income.

The trust does not incur any capital or gain taxes. Estate taxes reduced because the value of the assets remaining in the trust has been reduced.

For more Information Please Contact Armond Gorgorian @ 323.256.2564