Putting a donation in trust simply means that you donate your asset—cash or property or a combination of the two—by transferring ownership of those assets to the UN Refugee Agency in a protected trust fund. With a charitable remainder trust, the principal is owned by UNHCR, but you will continue to receive the interest or income from that principal.

Creating a Charitable Remainder Trust is an effective way to make a significant gift to a charitable cause. Many might consider making a similar gift in a will (a testamentary trust), but if the gift is made during your lifetime the tax benefits are realized on current income. Furthermore, you will continue to receive income from that asset.

There are two types of Charitable Remainder Trusts. With an annuity trust, you, the donor, receives a payment based on a percentage of the initial fair market value of the gift. With a unitrust, you would receive a variable payment based upon the fair market value of the assets as they are revalued each year. In either case, the return on investment is negotiated and would not be less than 5%.

Putting your donation in a trust is an irrevocable gift. Consequently, the UN Refugee Agency can issue a tax receipt for the value of the trust, and can recognize you as a significant supporter of the welfare of refugees and to properly thank you for your generosity during your lifetime.

A further benefit of establishing a charitable trust during your lifetime is that the asset is protected from probate and executor fees at the time of death, whereas if the assets are gifted as part of the will, they are included in the total estate assets.

It should be noted that establishing a trust of this nature requires professional assistance. As such, there are likely professional fees that must be borne by the donor in order to establish the trust as part of a financial plan.