LEGACY PLANNING SERIES: CHARITABLE SPLIT INTEREST TRUST

Split Interest Gifts to a Charity, such as the RAF
As the name implies, a split interest gift involves two or more parties. One is the donor, the second is a tax-exempt 501(c)3 charity like the RAF.

This is an irrevocable gift of an asset – typically a highly appreciated, yet previously untaxed one – to a special trust or charitable gift annuity. The transfer and tax deduction is generally based on the fair market value of the asset (per the terms of each agreement), rather than an amount reduced by long term capital gain taxes.



A retirement income stream is paid to you or a named beneficiary for as long as your lifetime, while the remainder of the asset goes to the RAF at your passing. The income tax deduction you receive due to the gift may help reduce your annual income taxes for a number of years in the future.


What assets may be donated to this Charitable Split Interest Trust?

  • Cash
  • Publicly traded securities
  • Some types of closely held business interests (Not Sub-S stock)
  • Real Estate
  • Personal property – Aircraft, RV’s, etc.

KEY BENEFITS

  • Preserves the value of highly appreciated assets:
    For those with significantly appreciated long term assets, including non-income producing property, you contribute that property to the trust and, when the trust sells it, it is exempt from tax. By donating assets in-kind to the trust, you preserve their full fair market value rather than a reduction by capital gain taxes. This allows for more income for you and the RAF.
  • Income tax deduction:
    The trust gives you the potential to enjoy a partial income tax deduction when you fund it, and the remainder is distributed to the RAF.
  • Tax exemption:
    The trust’s investment income is exempt from tax. This makes the trust a good option for asset divestment, and provides a larger income stream and remainder interest for the RAF.

Think of it as a Wealth Replacement Trust – The tax savings and potential increased retirement income flow could facilitate an insured wealth replacement trust for your heirs

NET RESULTS of the Charitable Split Interest Trust:
Capital gain tax savings, increased retirement income cashflow, a legacy gift to the RAF, and your heirs receive a tax-free bequest at your passing.

Submitted May 12, 2024

Posted in News

    Recent Posts

MARCEL LEBLANC

By lellington • September 15, 2026

DON'T HAVE TO LOOK FAR

By John McKenna • September 14, 2026
Sometimes one needs to look no further than one's incoming correspondence to find inspiration. Just this past week, folks passionate about the RAF mission reached out to me with suggestions that would bring resources to the RAF. Whether they be one-off items that we might offer, or events like large fundraisers, these folks are offering some thoughts on how we might continue to pay the bills. Additionally, we’re receiving word from folks with new destinations on their mind, and some pretty cool ones at that. Along the way, my inbox – as well as my calendar – is filled with updates on our Expanding the Map effort, with an emphasis on Fly Rocky Top. The Fly Rocky Top initiative in Tennessee is generating strong interest, and for good reason. It feels great. Folks are showing up to pitch in, with significant work projects planned. Trish and I, along with other board members, will be there to lend a hand to this exciting project. We are coming up on our annual year-end letter, which you will be seeing not long from now. In addition to showcasing a few more of our successful projects, we will be seeking your support. Stand by. I’ll wrap this up by letting you know that we could not be more pleased with how you all are doing your part. Thank you. It is so healthy to have an organization that uses passion as a primary energy source. - John McKenna, RAF Chairman Submitted September 14, 2026

GARRISON DAM RECREATIONAL AIRPARK IMPROVEMENTS CONTINUE

September 11, 2026
“We had a busy day at Garrison Dam Recreational Airpark, as we continue to work on the underwing camping area,” RAF North Dakota Liaison Brian Rau reported. Rau was awarded an RAF grant in spring of 2026 to convert an adjacent day-use park into an airport camping area, and had organized volunteers who began the project in May. The airport, 37N, is closed while the runway and taxiway are being upgraded by a contractor for the ND Aeronautics Commission.

PACK A TRASH BAG

By Stef Goza • September 9, 2026
You know the feeling. You set the airplane down somewhere spectacular, shut off the engine, and enjoy the pristine landscape in front of you. This is why you fly. Keeping airstrips pristine is everyone's responsibility. But one item that doesn’t always make it into the airplane is a good trash bag. Not for the trash you planned to make. For the trash you didn’t. Cans left in a fire ring, fishing line along the river, or food wrappers working their way through the brush. None of it came in your airplane, but you have the ability to get it out. That’s reason enough to tuck a couple of heavy-duty contractor bags in with your tie-down gear. They earn their space in other ways, too. A contractor bag can keep wet or muddy gear out of the baggage compartment, cover equipment in a downpour, collect rainwater, or become an emergency poncho or windbreak. It weighs almost nothing and takes up very little room. Throw a few in the airplane and leave them there. You may not need one for your own trash, but there is a good chance you’ll find another use for it—or find something worth carrying out. Submitted September 9, 2026 By Stef Goza, Etiquette Chair, Safety, Education, and Etiquette Committee

VOLUNTEERS CLEAR WILLOWS, TREES FROM MARBLE AIRFIELD

September 8, 2026
RAF Colorado Liaison Ken Long, Ambassador Mike Langersmith, and other RAF volunteers participated in an August work event at Marble, Colorado, a mountain airfield about 20 nm up the Crystal River drainage south of Carbondale. Airfield Manager Susan Blue put together the task list and oversaw the event that brought 21 volunteers in ten aircraft and four dogs.