Benefiting Academy and Donors Alike: Charitable Remainder Trusts
When Bill Moore ’61 arrived in Annapolis as a plebe in 1957, he fulfilled a long-standing family dream. His father had been admitted to the Academy but was unable to attend because in those Depression years he needed to work to help support his family. Moore made the most of his four years as a midshipman, serving as captain of the tennis team and earning a degree in engineering/naval science. He went on to serve four years on active duty, two on an aircraft carrier and two more back at the Academy as plebe and assistant varsity tennis coach.
Those experiences and an MBA from the University of North Carolina helped set the foundation for an exceptional career in banking and investment management, during which Moore held a series of positions with Legg Mason and founded an investment banking firm that he later sold to KeyCorp. As his career advanced, Moore looked for opportunities to give back to the Academy for its role in his success, making significant contributions to the Brigade Sports Complex construction and tennis programs and serving on the Naval Academy Foundation Joint Investment Committee and as an Athletic and Scholarship Programs trustee.
Along the way, Moore and his wife, Sandra, discovered an ideal way to combine their own financial goals with their desire to support the Academy: a charitable remainder unitrust (CRUT). Through his Naval Academy Foundation CRUT, Moore set up a trust and transferred to it a number of appreciated investments. Moore and his wife are paid a percentage of the value of the trust. After he and Sandra pass away, the remainder of the trust transfers to the Foundation. The Moores’ adult son and daughter are very supportive of their parents’ philanthropic plans — they understand the important role the Academy continues to play in their parents’ lives. While Moore acts as trustee for his CRUT, managing the investments himself, the Foundation fills this role for many CRUTs established by planned giving donors.
“From new and improved facilities such as the Brigade Sports Complex and Navy-Marine Corps Memorial Stadium to innovative programs like the Stockdale Center for Ethical Leadership Development, we see the tangible results of private support every time we return to Annapolis,” said Moore. “It is truly heartwarming to see that our current gifts and our future gift through our charitable trust are helping to sustain the highest level of excellence at the Naval Academy.”
Charitable remainder trusts offer donors several significant advantages:
- Income for life or a term of years for the donor and/or spouse or other beneficiaries
- Potential for growth of income over time
- Investment diversification
- No capital-gain tax due when assets are sold in the trust, making the full amount of the gift available for investment
- Immediate income-tax charitable deduction for a portion of the gift
- Potential gift- and estate-tax savings
- Investment management services provided by the Naval Academy Foundation
- Significant support for the Naval Academy mission and strategic priorities
“To me, the most important benefit of our giving to the Naval Academy is the knowledge that our gifts will help ensure the Academy’s ability to serve its mission and realize its objectives long into the future,” said Moore. “There are also a wealth of income benefits and potential tax savings available through properly structured financial gifts. But alumni and other donors don’t have to go it alone. The professionals in the Foundation’s planned giving office are there to work with you and can help you find the right vehicle for achieving your financial goals and supporting the Academy. Through working with the Foundation, alumni and friends of all different financial means can usually make far more significant financial gifts than they realize.”
For more information, contact Patti Bender at 410-295-4187 or email@example.com.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.