In a January 7 news release, Yale University has announced its decision to increase the payout from its $22.5 billion endowment fund during the upcoming fiscal year by 37% to an estimated $1.15 billion. The distributions will be used to expand student financial aid, recruit students of modest means, and, possibly, expand the size of Yale's undergraduate student body. Sen. Grassley, in a separate statement, praised the decision pointing out that Americans subsidize endowments by tax-exemption and, therefore, deserve a public benefit in return.  MORE »

From an investment standpoint, the Achilles' heel of charitable remainder trusts is unrelated business taxable income. The presence of even one dollar of UBTI will cause a CRT to lose its tax-exempt status for the entire tax year and be taxed as a complex trust. The effect of UBTI on a CRT can range from benign to catastrophic. In this article, Los Angeles attorney David Wheeler Newman reviews several recent letter rulings, all designed to avoid this potential investment trap.  MORE »

Does a charitable trust or foundation that supports cancer research optimize its mission by investing a portion of its assets in tobacco company stocks? In this article from the August/September 2003 issue of the Journal of Practical Estate Planning, Betsy Brill and Susan Winer discuss the importance and implications of mission-based or values-based investing, also known as Socially Responsible Investing. They also include a roundtable discussion with five leading experts in the field.  MORE »

The long history of endowments serves as a testament to their enduring value to charities. In this edition of Gift Planner's Digest, Philip Purcell from the Planned Giving Resource Center for the Central Indiana Community Foundation provides a brief history of endowments, how they are used, terminology, and practical operational issues.  MORE »

In this issue of Gift Planner's Digest, Robert M. Balantine, chairman and chief executive officer of the Atlanta based investment firm which bears his name, offers some sage advice regarding investment strategies for planned gifts.  MORE »

In this edition of Gift Planner's Digest, Pittsburgh attorney Carolyn D. Duronio examines the application of the Prudent Investor Act, unrelated business income and self-dealing rules, and opportunities for pooling investments with respect to the investment of charitable remainder trusts and other planned giving vehicles.  MORE »