Endowment: Charitable Remainder

Charitable Remainder - Charitable Lead Trust

The Greater New York Councils encourages the use of charitable remainder trusts, where the donor makes an irrevocable gift to the Greater New York Councils and retains for themself, or others, an income interest for life or a term of years. At the end of the term of the trust, the assets pass to the Greater New York Councils.

Unless otherwise specified by the donor, the assets will be accepted as an undesignated restricted endowment gift, and added to the Greater New York Councils endowment funds for perpetual use.

The use of charitable lead trusts may often be of benefit to both the donor and the Greater New York Councils. Such instruments provide a gift of an income interest from assets placed in trust for a term of years (generally less than ten years). At the expiration of the Greater New York Council's income interest, the income interest reverts to the donor or others he or she may designate.

Unless otherwise specified by the donor, the income interest will be accepted by the Greater New York Councils as an undesignated, restricted endowment gift and added to the Greater New York Councils endowment funds for perpetual use.

If the income interest is intended for a specific purpose, the donor should consult with the Scout Executive/CEO or Director of Individual Giving before a Charitable Lead Trust arrangement is established.

All donors are advised and encouraged to seek legal counsel prior to finalizing bequests or other planned gifts.

Because the correct drafting of such trusts is so important and often complex, the Development Department and the donor's independent legal counsel should review documents relating to all trusts prior to execution by the donor and acceptance by the Greater New York Councils.

In the case of charitable remainder trusts and charitable lead trusts, the donor may select his/her own trustee. In these cases, the setting of investment policy shall be between the donor and trustee.

Exceptions to these policies may be made only with the approval of the Board of Directors of the Greater New York Councils.

Irrevocable Planned Gifts 
The value of an irrevocable planned gift, such as a charitable remainder trust, lead trust, gift annuity, or remainder interest in real estate will be recorded as the dollar value of the remainder or BSA interest as estimated by the donor for purposes of National BSA recognition and reporting purposes.

If obtaining specific information is impractical or inappropriate at the time, the council will assign an estimated number as described in the revocable planned gifts section of this document. (Note: while the remainder interest in charitable trust and other irrevocable gifting vehicles have been historically larger than matured bequests, use of the estimated number provides a simple, conservative solution to this complicated valuation problem.)

For purposes of general ledger booking, the discounted present value of the charitable interest will be recorded.

For more information about Charitable Trusts, please contact Steven Benini at the Greater New York Councils, Boy Scouts of America at (212) 651-2815 or via e-mail at steven.benini@scouting.org