FundSvcs Community

 View Only
  • 1.  Irrevocable CRUTS and Counting in Campaign

    Posted 10-16-2024 11:51 AM

    Hello, 

    We have a donor who wants to give through an irrevocable CRUT (may do for all family members, including children too) but will not be 65 by the end of the campaign, can the whole amount of the gift be counted? 

    Thanks in advance! 



    ------------------------------
    Holley Nielsen
    Assistant Director Gift Processing
    Utah Valley University
    ------------------------------


  • 2.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 10-16-2024 12:01 PM
    Age is only a factor for revocable bequests.

    If you are named the irrevocable beneficiary (there is no provision that allows the donor to change charitable beneficiaries), you may count the CRUT (or your pro-rata portion of others are named).

    The CASE Standards cover this!

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard





  • 3.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 10-16-2024 12:06 PM

    Wonderful, thank you, John!  You are a rockstar, what would this community do without you!!

    Have a fantastic day everyone! 



    ------------------------------
    Holley Nielsen
    Utah Valley University
    ------------------------------



  • 4.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 10-16-2024 01:00 PM
    Well, for starters, people would have fewer emails from me to read :-).

    I should have added more to my reply.

    You asked whether "the whole amount" could be counted. I explained that you could only count your portion if you were irrevocably named.

    However, I don't know how you treat irrevocable deferred gifts in your campaign counting policy. While it is a small percent of institutions, a few only count the IRS-deductible amount of deferred gifts in their totals. That's a holdover from older standards, but it still applies to some. Most count the face value-or their pro-rata portion.

    John


    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 09-05-2025 03:25 PM
    Edited by Jayme Fancher 09-05-2025 03:32 PM

    I'm looking to piggyback on this. Is this also true of an externally managed CRUT where we are a named beneficiary? Most we manage internally, so just confirming they still cannot change the beneficiary regardless of who manages the CRUT. 

    Their documentation says:

    Section 4.03 Amendment of Charitable Designation
    During our lifetime, we reserve the right, by joint agreement, to designate, at any time and
    from time to time, in lieu of the qualified organization and purpose set forth in Section 4.01
    and Section 4.02, one or more qualified organizations as the charitable remainderman, or
    the charitable purposes to which a qualified organization shall put the contribution. If one
    of us is deceased, the survivor will have this right. Any amendment or revocation must
    refer specifically to this agreement and must be brought to the attention of our Trustee not
    later than six months after the death of the survivor of us. If more than one written
    instrument is delivered to our Trustee, the written instrument bearing the latest date will
    control unless that instrument provides otherwise.



    ------------------------------
    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
    ------------------------------



  • 6.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 09-05-2025 03:35 PM
    If you are named as the irrevocable beneficiary, you may count the CRUT as you would if you held the asset. CASE addresses this in its section on Wholly Charitable Trists Administered by Others.

    John

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard







  • 7.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 09-05-2025 03:49 PM

    Thank you! I've reviewed that section now also. Can you review the clause copied below? Still irrevocable?

    The CRUT states:

    Section 1.04 An Irrevocable Trust

    This trust is irrevocable, and we cannot alter, amend, revoke, or terminate it in any way except as otherwise specifically provided in this agreement. 

    However, later in the document states:

    Section 4.03 Amendment of Charitable Designation

    During our lifetime, we reserve the right, by joint agreement, to designate, at any time and from time to time, in lieu of the qualified organization and purpose set forth in Section 4.01 and Section 4.02, one or more qualified organizations as the charitable remainderman, or the charitable purposes to which a qualified organization shall put the contribution.  If one of us is deceased, the survivor will have this right.  Any amendment or revocation must refer specifically to this agreement and must be brought to the attention of our Trustee not later than six months after the death of the survivor of us.  If more than one written instrument is delivered to our Trustee, the written instrument bearing the latest date will control unless that instrument provides otherwise. 



    ------------------------------
    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
    ------------------------------



  • 8.  RE: Irrevocable CRUTS and Counting in Campaign

    Posted 09-05-2025 04:31 PM
    Unfortunately, this clause makes it impossible for you to count anything until cash comes in the door.

    The donor retains full tax-deductibility for establishing the CRUT because the beneficiary must be a qualified charitable organization. However, they are reserving the right to change the name of the beneficiary - or split the benefits between multiple designees. With such a clause, you cannot count anything.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987