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WHO MUST FILE FORM CT-TR-1? Charitable organizations whose total revenue for the fiscal year is under $50,000 must file Form CT-TR-1 and RRF-1 with the Attorney General's Office. Private foundations are not required to file Form CT-TR-1 and instead must file IRS Form 990-PF with the RRF-1.
A particular group of people is often chosen to be the designated beneficiaries of the trust, such as veterans. A charitable trust differs from a foundation because you don't have to file any documents with the government. This is why some people opt for them instead of a foundation since this allows for more privacy.
Charitable trusts offer several benefits, including tax deductions, reduced estate taxes, and the ability to make a lasting impact. It is important to consult with an experienced estate planning attorney and financial advisor before establishing a charitable trust to help ensure it is the right choice.
Charities typically have set spending requirements, whereas nonprofits are free of restrictions. Foundations are also free of spending requirements but often spend the majority of their funds on grant purposes and the remaining on charitable activities.
How to create a charitable trust Determine what assets you want to add to the trust. Remember that your donations are irrevocable. Decide on your beneficiaries and whether you want the trust income to pay them or the organization first. ... Work with a professional to draw up a trust document.