posted on: July 28, 2015
In researching our Philamplify assessments of the Hess Foundation and Walton Family Foundations, I interviewed David Cay Johnston, a Pulitzer-Prize winning journalist and expert on economics and tax issues. Johnston is a well-known critic of charitable lead trusts, an investment strategy that provides the Hess Foundation with much of its wealth. Read on to learn what he thinks of this controversial, but little-understood, philanthropic tool.
NCRP) What is the purpose of a charitable lead trust (CLT)?
JOHNSTON) To avoid paying taxes on the increased but untaxed increase in value from a family business’s corporate stock, a family can put these assets into a charitable lead trust, which throws off income that is donated to charities. The trustees decide … Continue Reading
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