If you have a charity or cause that is close to your heart, you may want to create a charitable trust which can help support the organization long term.
First, the trust documents should clearly state the purpose and the mission of the charitable trust, including who will benefit from the trust and what its goals are. It’s also important to choose a name for the trust and check to make sure that it is not already in use.
The trust documents should name a trustee, outline their powers and duties and include instructions for how a new trustee will be appointed, if needed. The trust will need to be funded, which means that you must transfer assets into the trust. These assets may include cash, real estate or other types of property.
Choosing a trustee
You will need to choose a trustee, who is the person responsible for managing the trust’s assets for the benefit of the charity. This person will make decisions according to the trust’s purpose.
There are several qualifications to look for in a trustee. These include financial and investment knowledge, including budgeting, communication and interpersonal skills to regularly update the beneficiaries, and an understanding of the goals outlined in the trust. You may decide to choose a trustee who is also aligned with your commitment to the charity or cause, although this is not required.
Overall, you should choose a trustee who is honest, has high ethical standards and has a strong attention to detail.