Charitable trusts are a smart approach for anyone seeking to increase philanthropy while simultaneously lowering their tax burden. You can give more to your desired charity without worrying about a high tax bill on a sale of assets: rental property, second home, a business or similar event.
Charitable trusts allow you to move assets to a trust that you can direct for the good of a charitable organization. The assets are protected against capital gain taxes, allowing there to be more assets to produce income. You can direct the income to yourself, family or others while the asset base continues to grow.
These contributed assets might be rental properties, private residences, or business holdings.
Since 1969, tax code has allowed capital gains to be split or redirected to good causes, reducing your level of taxation.