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Question about booking a CLAT

  • 1.  Question about booking a CLAT

    Posted 23 days ago

    Hello, all –

     

    May I ask a question about how your institutions book Charitable Lead Annuity Trusts?  If you are scheduled to receive quarterly payments of a specific amount for a specified amount of time, do you 1) book the full forthcoming amount as a pledge, or 2) book each installment as an outright gift when each one arrives? 

     

    I'd appreciate any feedback anyone can provide. 

     

    Many thanks!

     

    Michael Halverson, Ed.D.
    Senior Director of Advancement Services
    Loyola University Chicago
    T.
    312-915-7283 | C. 320-363-4987
    mhalverson@luc.edu | www.luc.edu/advancement

     

    150_email_150_31

     



  • 2.  RE: Question about booking a CLAT

    Posted 23 days ago
    Per CASE:

    ". . . record the face value of the payment stream as a pledge in the year it is given, and record the annual income as pledge payments as you receive it regardless of the length of the trust."

    See the Guidelines, page 26, for a full discussion.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Question about booking a CLAT

    Posted 3 days ago
    Would you record the CLAT gift on the individual donor's record as an individual gift?  Or would you open a separate record for the CLAT and record it as a foundation or trust gift?

    ------------------------------
    Ann Key
    Director of Advancement Services
    Haggai International
    annk@haggai-international.org
    ------------------------------



  • 4.  RE: Question about booking a CLAT

    Posted 3 days ago
    It is the donor who is creating the trust and naming you as a beneficiary.  Only if the CLAT were revocable - meaning you were NOT named as an irrevocable beneficiary - would you create a separate donor record for the trust.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987