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
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Bill credits aviation for much of his success in business and the ability to serve his companies and family. What began in a Champ, and a Tri-Pacer owned by five people, turned into what Bill calls, “a key business tool” in which he accumulated 9,000 hours – in a Cheyenne, a Pilatus, and a TBM, where ninety-five percent of his flying was for business. “My retirement enabled me to recall ‘Why I Learned to Fly’, a slogan from an old RAF video.” Bill’s son, Patrick, purchased the C185 they now share. “While attending a business function, some associates arrived in corporate jets. As they joined up on the tarmac, the jet pilots gathered around Patrick’s 185, and one of the passengers asked, ‘What’s special about this?’ No explanation needed for this RAF audience,” Bill says. “My involvement in the RAF is, in a partial way, repaying the rewards aviation has endowed me with. Having been involved in many worthwhile nonprofits, this is one where financial support is only part of the picture. Physically participating in great projects that have a lasting effect, with good people, returns a great personal benefit,” he says. “My only regret is that I wasn’t there at the start.” Bill and his wife Jane are privileged to be able to split time between their long-time home in eastern Nebraska and Scottsdale, Arizona. While still serving on several boards, he enjoys golf “about every third shot,” biking, cars, and reading, but always looks forward to the time he can be involved in the RAF. “It’s flying with a purpose,” he adds. Bill can be reached at bdugan@theraf.org
AR Ambassador
At about this time, every year, we have this conversation at the RAF about what our year end letter (code for asking for your financial support) should say to you, and about the RAF and the accomplishments of the past year.
A Christmas gift of flight lessons from his parents started Scott Anttila’s aviation journey in 1985. “I learned at Johnson Field, a small grass strip tucked into the woods in Michigan’s Upper Peninsula, and that early exposure to simple backcountry flying stuck with me,” Scott says. Growing up in the U.P., he spent a lot of time outdoors and found that flying was another way to get to the places he liked to explore—especially the ones most people never saw. As he earned more ratings and eventually moved to the Detroit area for work, Scott realized he needed a way to stay connected to northern Michigan. He bought an airplane and used it to get back to the smaller airstrips and lake country he enjoyed. Along the way, he also flew gliders out of Frankfort, soaring along the Sleeping Bear Dunes and towing sailplanes over the Great Lakes. “Those flights gave me a different appreciation for the landscape and made me even more interested in the small, out-of-the-way airports scattered around the state,” he says. Visiting those kinds of places, Scott first came across the Recreational Aviation Foundation. He started using RAF-supported airstrips both inside and outside Michigan. “I noticed how well-kept they were and how much access they opened up,” he says, adding, ”Over the years, I’ve watched a number of grass strips close, which made the RAF’s mission feel especially important to me. Maintaining these airstrips keeps aviation connected to the outdoors and makes it possible for more people to reach the quiet, remote areas that inspired me to fly in the first place.” Scott joins the other two RAF Michigan Liaisons, General Grant and Tanmoy Ganguly. He can be reached at santtila@theraf.org . Submitted December 11, 2025.
“The word that comes to mind when I think of our second Walker Ridge work party is magical,” RAF California Liaison Doug Lumgair said, "even though it started off again with a truck stuck in the mud.” Volunteers began arriving Friday afternoon in a tailwheel Rans, a Super Cub, and Lumgair in his Cessna 170. A pickup with a big dump trailer brought the Polaris Ranger, and more pickups arrived. The runway surface posed major problems with boulders protruding from the surface. Everyone was eager to get started with pry bars and remove them. Once they fired up the generators to power the hammer drills, they discovered that this was the best method for attacking the rocks below the surface and breaking them up into pieces that they loaded into the trailer for removal. “At times, it felt like we had taken on an impossible task. But with steady work and persistence, by afternoon, we began to see the light at the end of the tunnel,” Lumgair said. In the Friday evening fire circle, they made new friends while sitting around a propane fire pit that had been cleverly transformed into a radiant heater by placing a washing-machine drum over it. Walker Ridge lies in a dark-sky area. Before the full supermoon rose, Lumgair said they could see the Milky Way with the naked eye. The campsite at the south end of Walker Ridge has a gorgeous view of the valley, and the view became “even more breathtaking as Central Valley tule fog filled the valley and the supermoon lit the fog, creating a shimmering white lake.” Lumgair said. Saturday morning, two crews quickly organized with hammer drills, and others began cutting brush along the runway edges. Volunteers had already removed what Lumgair called an incredible amount of brush during their first work party, but Saturday, they hauled out twelve more trailer loads. Late on Saturday, they had enough time to work on the rock outcroppings in the south turnaround area as well. "It was amazing that we were able to cut and haul so much brush and break down rocks and fill the resulting holes—all in one steady, hard-working day. Thank you very much to everyone for supporting the RAF in so many ways,” he said. Some stayed Saturday night to enjoy another beautiful evening. Work remains, and Lumgair is planning more work parties in the coming year to complete further improvements, some of which will require additional approval from the BLM. “Please let me know if you get up there this winter. I’d love to hear your thoughts and see any photos of your experience, Lumgair added. Doug Lumgair can be reached at dlumgair@theraf.org . Submitted December 11, 2025.
