Grantor Lead Trust

Gift Range: $100,000 or more

A grantor lead trust provides a donor with a charitable income-tax deduction for the present value of the payments University of Chattanooga Foundation is to receive from the trust for a specified period of time. The donor, however, continues to be taxed on the income earned by the trust each year—including the amount distributed to University of Chattanooga Foundation. (To avoid this negative tax result, donors often fund grantor lead trusts with tax-exempt securities.) At the end of the trust term, the assets are returned to the donor.

The University of Chattanooga Foundation exists as a repository for gifts aimed at benefiting the University of Tennessee at Chattanooga.