SUPPORT COLLEGIATE CAMBRIDGE WHILE PROVIDING FOR YOURSELF AND YOUR FAMILY

CAm is pleased to announce that with the expertise of State Street Global Advisors’ (SSgA) Charitable Asset Management*, you may now easily establish a Charitable Trust to benefit collegiate Cambridge, yourself and your family.

A Charitable Remainder Trust (CRT) provides lifetime income to you and/or your family and significant tax advantages. You transfer assets to the trust e.g., cash, securities, real estate, etc. The funding assets of the trust are liquidated and the proceeds invested. A distribution is paid to you, other non-charitable beneficiaries, or both, for life or a specified term of up to 20 years. At your death or at the end of the trust term, the trust’s assets are transferred to CAm. You may choose a fixed rate of income (Annuity Trust) or a variable rate of income (Unitrust).

Considered the opposite of a CRT, a Charitable Lead Trust (CLT) allows you to transfer assets to your family at a reduced tax cost while benefitting CAm now. After the funding assets are liquidated and invested, the current annual income payments are paid to CAm. At the end of the term, the trust distributes all of its assets, including any appreciation, to you or the beneficiaries you have identified.

On the left hand column of this page, you will find the 2008 edition of 1209 Notes, which includes details of our partnership with SSgA.

CAm can also provide a seamless transition should you wish to convert an existing trust to be administered by SSgA. Please contact CAm’s planned giving office to begin exploring a Charitable Remainder or Lead Trust.

*Established in 1984, Charitable Asset Management is a boutique group within SSgA dedicated to providing a unique combination of gift planning experience in stewardship, investment management, and state of the art technology.  With over $3 billion in planned giving assets for more than 25,000 donors/beneficiaries, their staff of 46 planned gift specialists works with 160 charities, 60 percent of which are associated with institutions of higher education.†  The group’s in-house tax team is solely dedicated to charitable tax reporting for its clients and these six professionals have an average of 16 years charitable trust tax experience.†

† as of March 31, 2008

1209 SOCIETY MEMBERSHIP Established in 1998, The 1209 Society honors and acknowledges the many generous donors living in the U.S. who recognize the importance of Cambridge University and its 31 Colleges through their estate planning.  By including Collegiate Cambridge in your will, trust or estate plan, you are invited to become a member of The 1209 Society. MEMBERSHIP INCLUDES *  Invitations to special events *  Recognition Certificate *  Annual Newsletter *  Listing in The 1209 Society Roll of Honor     (a leather-bound volume in Cambridge) To download the 1209 Brochure, click on the image at right:

TYPES OF BEQUESTS

Specific bequest – a stated dollar amount or particular asset such as securities, real estate or tangible personal property (e.g. works of art).

Residuary bequest - a percentage of the remainder of the estate after specific amounts bequeathed to other beneficiaries have been distributed and estate-related expenses have been paid. 

Contingent bequest – a gift that takes effect only if other beneficiaries predecease you.

Testamentary trust – provides one or more heirs with income for life after which assets pass to Cambridge in America.

Suggested language to include Cambridge in America in your will for a specific bequest:

“ I bequeath to Cambridge in America, a 501(c)(3) nonprofit corporation organized and existing under the laws of the District of Columbia with the business address of 100 Avenue of the Americas, 4th Floor, New York, NY 10013, the sum of __________ [dollars or percentage of estate], to be used exclusively for its charitable purposes. It is my hope that these funds will be utilized for the support of [University or College area desired for support or for general operations, etc.]”* * Under its charter and in accordance with U.S. tax law, Cambridge in America may not receive restricted gifts. However, the Board gives every consideration to donors’ requests when allocating gifts to Cambridge and its Colleges.

A Charitable Remainder Trust is established through an irrevocable transfer of cash, securities, or real estate and provides you and/or your beneficiaries with lifetime income with annual payments based on a fixed percentage of the trust’s value or a fixed dollar amount.  After the life interest(s) have ended, the principal is transferred to Cambridge in America and used in accordance with your wishes.  A charitable tax deduction for a portion of your contribution is available in the year you make the gift. 

A Charitable Lead Trust is established through an irrevocable transfer of cash, securities or real estate and provides Cambridge in America with annual income (based on a fixed percentage of the trust’s value or a fixed dollar amount) for a specific term of years, usually 10-20.  When the trust terminates, the principal plus any appreciation is transferred to your beneficiaries.  A lead trust may be established during your lifetime or under your will. You can receive Federal gift and estate-tax deductions for the value of annual trust payments to Cambridge in America.