by Ashley Coldiron, Chief Development Officer

If you’ve represented charitable families over the years, you’ve certainly heard the term “charitable remainder trust,” sometimes called a “CRT.” You might have even helped clients set them up. 

For most attorneys, CPAs, and financial advisors, CRTs don’t come along every day. Because a CRT can be such an effective planning tool in certain situations, it’s useful to have at least a basic level of knowledge about how they work. 

Here are six important points to keep in mind.

What is it? Your client establishes a CRT as a standalone trust. The trust pays an income stream to the client (and potentially other beneficiaries such as a spouse or children) for life or for a period of years. According to the trust’s terms, whatever assets are left when the income stream ends will pass to a charity, or to your client’s fund at the Community Foundation.

Where does the charitable deduction figure in? Because the transfer of assets to the CRT is irrevocable, your client is eligible for an up-front charitable income tax deduction in the amount of the present value of the charity’s future interest, calculated according to IRS-prescribed rules and interest rates. Remember that assets held in a CRT are excluded from your client’s estate for estate tax purposes. 

Who is it for? The ideal client to establish a CRT is typically someone who owns highly appreciated assets, including marketable securities, real estate, or closely-held business interests. That’s because a CRT allows these assets to be sold within the trust without triggering immediate capital gains taxes, enabling the proceeds to be reinvested. 

Why are some trusts called CRATs and CRUTs? A “charitable remainder annuity trust” (“CRAT”) is a type of CRT that distributes a fixed dollar amount each year to the income beneficiary. Your client cannot make additional contributions to a CRAT. A “charitable remainder unitrust” (“CRUT”), on the other hand, is a type of CRT that distributes a fixed percentage (at least 5%) annually based on the balance of the trust assets (revalued every year). Your client can make additional contributions to a CRUT during lifetime.

When is a CGA a better fit? The tax laws permit a client over the age of 70 ½ to make a once-per-lifetime transfer from an IRA of up to $54,000 (2025 limit) to a CRT or other split-interest vehicle, such as a charitable gift annuity (CGA). This is sometimes called a “Legacy IRA.” Because the cost of setting up a CRT usually means that a $54,000 CRT is impractical, a client who wants to leverage the Legacy IRA opportunity may lean toward a CGA instead.  

How can I learn more? As is the case with any question you encounter from a client about charitable giving techniques, consider the Community Foundation your first call. We can help you navigate the options and identify strategies that are likely to best meet a client’s needs, and we are always happy to assist.

We look forward to working with you! 

Pine Bluff, Ark. (Apr. 9, 2025) – Arkansas United Methodist, in partnership with Arkansas Community Foundation will be hosting a disaster case management training over the coming weekends. The two-part training will take place at Lakeside United Methodist Church on Saturdays April 26 and May 3. The training will offer a unique opportunity for volunteers that want to help out following disasters.

After a major disaster event like a flood, tornado or fire, many nonprofit organizations are often there to help with immediate needs—making sure that those affected have shelter, food, clothing and other necessities.. After those organizations leave and the media cycle passes, communities still have many needs to continue rebuilding. That is often a long and sometimes lonely road. Disaster case managers work with families and households to fully recover. Having trained disaster case managers is especially important as for spring in Arkansas, and the severe weather and heavy rains that can come along with it.   

In especially widespread events, disaster case managers may even be paid positions. This training may be valuable for those interested in supporting communities across the state.  

Training participants will learn how to help victims of disasters to get connected with resources, work with local disaster committees, navigate through insurance and FEMA appeals, and connect with experts that have disaster case management experience.  Training is $10 per person.

Anyone wanting to make a real difference in helping communities get back on their feet after a disaster can register by contacting Lauren Morris at lmorris@arcf.org or at 501-372-1116.

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Arkansas Community Foundation, a statewide nonprofit organization, provides resources, insight and inspiration to build stronger Arkansas communities – communities where our kids will want to raise their kids. The Community Foundation is the largest grantmaker in the state in the number of grants made each year. Since 1976, the Foundation has awarded more than half a billion in grants to nonprofits. Serving local communities through a 29-affiliate network along with statewide initiatives, the Foundation staff works directly with donors, professional advisors and nonprofits to help strengthen Arkansas communities through strategic philanthropy and focusing on local needs. Its assets rank among the top 60 of community foundations in the United States with more than $800 million in charitable assets under management.

By Lesley Roberts, Philanthropic Advisor

Incorporating philanthropy into your child’s birthday celebration can be both fun and meaningful. Instead of gifts, kids can collect donations for a favorite cause, such as books for a children’s hospital or pet supplies for an animal shelter. Beyond the party, teaching kids about giving fosters lifelong generosity.

Here are some additional ways to instill charitable values:

  • Be Intentional: Make giving a family tradition to help children see wealth as a tool for positive impact.
  • Make It Tangible: Show kids how their contributions help. Explain how $100 can feed a family for a week or $1,000 can provide classroom supplies.
  • Let Them Choose: Kids engage more when they get to choose the causes they care about. Our Arkansas Nonprofit Directory offers insights into local nonprofits and AspireArkansas.org offers information on community needs.
  • Get Hands-On: Volunteering as a family reinforces the value of giving. Whether it’s a food bank visit or a neighborhood drive, these experiences help make philanthropy real.

The Community Foundation is here to help families cultivate a spirit of giving. We’re honored to support all generations in building a stronger community.

By Jody Dilday, Philanthropic Advisor

When disaster strikes, the urge to help is natural. Yet, effective crisis giving requires thoughtful planning. Here’s how to ensure your donation makes the greatest impact:

  • Verify the Charity: Give to reputable organizations with a proven track record. Check our nonprofit directory to find and verify organizations you’re considering.
  • Cash is Best: While supplies like food and medical aid are essential, cash donations allow charities to purchase exactly what’s needed and support local economies.
  • Beware of Pressure Tactics: Avoid high-pressure appeals that lack transparency. Predatory fundraising behavior often emerges following disasters when emotions and needs are high.

The Community Foundation is here to help. We can guide you in making informed decisions, protecting your gift from fraud, maximizing tax benefits, and ensuring your donation supports both immediate relief and long-term recovery.

Whether you have an established fund or are considering one, we are honored to assist you in making a meaningful impact when it matters most.

By Ashley Coldiron, Chief Development Officer

Planning for the future is important, and that includes making a will, setting up a trust, and creating financial plans for retirement. But have you considered including charitable giving in your estate plan? The Community Foundation is here to help you align your giving with your values while maximizing financial benefits.

Formalizing your charitable intentions can bring purpose and extend your impact beyond your lifetime. Thoughtful giving strategies can also offer tax benefits, such as reducing taxable income through charitable deductions or minimizing estate taxes by directing funds to charity. Donating appreciated assets, like publicly traded stock, can help you avoid capital gains taxes while supporting causes you care about.

The Community Foundation team is ready to guide you in creating a philanthropy plan that incorporates both lifetime giving and legacy gifts. Here are three key considerations:

  • Give to What You Know: Supporting causes you are personally connected to brings the greatest fulfillment. If you need guidance, our team can provide insights on charities that align with your values.
  • Give Where You Live: Local organizations often address the most pressing needs in your community. We can help identify opportunities to make a meaningful difference close to home.
  • Give to the Causes You Love: When you donate to organizations that align with your passions, you are more likely to stay engaged and make a lasting impact.

Whether you already have a donor advised fund or are just beginning your charitable giving journey, the Community Foundation is honored to support your philanthropy. We look forward to helping you create a plan that reflects your generosity and vision.

Carroll County Community Foundation Board of Directors are working to continue the charitable legacy of the late Wayne and Janet Clark. Supporters of the Community Foundation since its inception in 2001, the Clarks created their own named endowment in 2002 which endures today – lending financial assistance to many projects throughout the county in their memory.

In the past 12 months, the Wayne and Janet Clark Charitable Endowment has provided two significant donations to the Berryville community. In the summer of 2024, a Clark Endowment grant built a safety fence around the Janet Clark Memorial Playground next to the Berryville Community Center.

Mavis Lehr, Lauren Morris (ARCF), Jamie Hussey (Berryville Parks and Recreation Director), Janell Robertson, Teddy Willing (Mavis and Teddy are CCCF Board members)

“The addition of the fencing around our playground has been a huge safety benefit for our patrons and looks attractive as well. We cannot say enough how thankful and blessed we are for the contributions of our donors and the Clark Endowment through the Carroll County Community Foundation,” said Jamie Hussey, Berryville Parks and Recreation Director.

Last week, the Clark Endowment provided a significant grant to the Friends of the Berryville Library to bolster support of the new library building program.

“We are very thankful for the support of the Clark Endowment. Like an endowment, a new library in Berryville will be a gift that serves our community for generations to come,” said Julie Hall, Director, Berryville Library. “We have been raising money towards this goal for years and are breaking ground April 1. While this is a momentous achievement, we are not done yet. We need to raise additional funds to furnish the building.”

The Clark’s charitable legacy is a perfect example of the power of an endowment—it grows through investment and gives out grants forever. In 23 years, their endowment has provided 75 grants totaling over $215,000. It will never stop giving back in their memory. The Clarks understood that a charitable gift should be an investment in a cause you care about that will generate unending returns for the entire community.

First row:  Joe Scott, Mavis Lehr, Kristy Noble Tesch (representing the Berryville Friends of the Library), Janell Robertson, Taylor Hudspeth Back Row: Mike Reed, Teddy Willing, Kathy McCormick (all CCCF Board members except for Kristy Noble Tesch who accepted the grant on behalf of the Friends of the Library)

“We are so thankful for donors like the Clarks,” said Janell Robertson, Carroll County Community Foundation Executive Director, “Their love and continued support for our county through their thoughtful and generous endowment reminds us that we can all make a difference, not just now, but forever.”

Working with the Carroll County Community Foundation provides charitable donors with the opportunity to give where it matters to them while maximizing their tax-deductible contributions.

by Jody Dilday, Philanthropic Advisor

Keeping up with tax law changes is a challenge, and 2025 is shaping up to be a landmark year. Many advisors turn to the Community Foundation for insights on legislative shifts that could impact charitable giving. Here’s what you need to know:

  • Tax Cuts and Jobs Act (TCJA) Sunset – When the TCJA expires at the end of 2025, key provisions will revert to pre-2017 levels. The top individual tax rate will increase from 37% to 39.6%, potentially enhancing the benefits of charitable deductions. The estate tax exemption will also drop significantly, making charitable bequests a valuable tool for reducing tax liabilities.
  • Potential Expansion of Charitable Deductions – Proposed legislation, such as the Charitable Act, could introduce a universal deduction for non-itemizers, encouraging broader charitable giving. This bill continues to gain traction.
  • Uncertain Impacts – The looming 2025 “cliff” may lead to a major tax code rewrite, influencing charitable giving trends. A past example: after the TCJA reduced tax incentives for donations, charitable giving declined by as much as $20 billion.

The bottom line? We’ve got you covered. The Community Foundation closely monitors tax law developments and their implications for you, your clients, and the nonprofits they support. We’re here to help you navigate the complexities and seize opportunities for strategic charitable planning.

by Lesley Roberts, Philanthropic Advisor

As the holiday glow fades, many clients face the annual stress of gathering tax documents and working with their CPAs, financial advisors, and tax attorneys. Preparing for last year’s filings and planning for the year ahead can feel overwhelming. This year, several factors make tax season particularly challenging:

  • Uncertainty in Legislation – With ongoing changes to tax laws, both advisors and clients struggle to plan with confidence. When so much is up in the air, it’s difficult to provide reassurance.
  • Emotional Strain – Confronting financial realities—income, debts, losses, and tax liabilities—can be draining. Clients who procrastinate may feel even more stressed.
  • Information Overload – The abundance of tax advice online can create confusion. Misinformation or conflicting strategies often make it harder for clients to trust professional guidance.

But there’s good news! Discussing charitable giving can be a bright spot during tax season. Philanthropy not only offers tax benefits but also brings positive emotions to the surface. Many of your clients have already established donor advised funds or other giving vehicles with the Community Foundation. Others may be ready to start their philanthropic journey now.

We’re here to support you. As you navigate tax season, don’t hesitate to reach out. The Community Foundation is honored to be your trusted partner in helping clients align their financial plans with their charitable goals—now and all year long.

by Ashley Coldiron, Chief Development Officer

A major wealth transfer is underway as Baby Boomers prepare to pass assets to their Gen X and Millennial children. The numbers are staggering—$124 trillion in U.S. wealth is expected to change hands by 2048, with $105 trillion going to heirs and $18 trillion earmarked for philanthropy.

For advisors, this is a pivotal moment to help clients integrate charitable giving into their financial and estate plans. The Community Foundation is here to assist with strategies that ensure clients’ philanthropic wishes are fulfilled.

Key reasons to prioritize charitable planning:

  • Bridging the Knowledge Gap – Many clients are unaware of tax-efficient giving options. They may still write checks to charities without realizing the benefits of donating appreciated stock or using donor-advised funds.
  • Advanced Giving Strategies – High-net-worth clients often require sophisticated planning to optimize tax benefits and maximize their philanthropic impact. Structuring gifts of complex assets, such as closely held business interests, can provide both financial and charitable advantages.
  • Proactive Legacy Planning – Waiting to incorporate philanthropy into an estate plan can be a missed opportunity. Naming a fund at the Community Foundation as an IRA beneficiary, for example, is a highly tax-efficient way to support charitable causes.

By leveraging our expertise, you not only enhance your clients’ financial plans but also deepen your relationships and strengthen retention. Let’s work together to ensure your clients’ legacies reflect their values while achieving their financial goals.

by Ashley Coldiron, Chief Development Officer

If you’re 70½ or older, a Qualified Charitable Distribution (QCD) is a smart way to give to a designated, field-of-interest, or unrestricted fund at the Community Foundation. In 2025, you can direct up to $108,000 from your IRA to several types of funds at the Community Foundation—though donor-advised funds aren’t eligible.

But what if you intended to make a QCD in 2024 and ran out of time? Maybe you even initiated one on December 31, only to find it didn’t count due to settlement delays. While you can’t retroactively apply a QCD, here’s how to move forward:

  • Check Your RMD – If you were required to take a Required Minimum Distribution (RMD) for 2024 and missed it, file IRS Form 5329 to request a waiver and avoid penalties.
  • Plan for 2025 Now – Making your QCD early in the year helps ensure it counts toward your RMD before other taxable withdrawals, avoiding issues with the “first-dollars-out rule.” Plus, you’ll skip the year-end rush.

Our team is here to help you and your advisors navigate QCDs and other charitable giving strategies. Let’s work together to make the most of your philanthropy in 2025!