The Northern Trust Charitable Giving Program offers a simple and flexible way for you to make a difference in the community while streamlining your charitable giving. Enjoy the personal and financial benefits of charitable giving and take a more active role in recommending grants to organizations and causes that are of interest to you and your family.
Establishing a Fund
As a donor to the program, you will, for tax purposes, be making a charitable contribution to charity in the year of transfer. Although the assets you transfer belong to charity, you will serve as the "Donor Advisor," recommending grants to charities from the fund balance for this year and for years to come.
Making a Difference
You can begin to make grant recommendations as soon as your donation is received and invested in the Northern Trust Charitable Giving Program.
As joint sponsor of the program, The Chicago Community Foundation facilitates the grant-making process and helps ensure that all grant recipients are Internal Revenue Code Section 501(c) (3) public charities that will use your contributions for charitable purposes. Since this program is offered nationwide, you may also work through your local community foundation when placing grants.
Deciding What to Donate
The choice of what to donate to the Program is an important one, with many tax planning implications. The Northern Trust Charitable Giving Program accepts the following:
In addition to your donating cash or publicly traded securities that you hold in one of your personal accounts, existing family foundations, or donor advised funds, may also donate cash or publicly traded securities that they now hold.
Another Tax Advantage
Many donors choose to create a donor advised fund instead of a private foundation because of the income tax advantages. The charitable income tax deduction available to donors for transfers to a donor advised fund is substantially greater than that available for transfers to a private foundation.
You may recommend that your donations to the program be allocated among any or all of three customized Investment Pools managed by Northern Trust Investments, Inc., an affiliate of The Northern Trust Company and a registered investment adviser. These Investment Pools include:
Contributions made without a specific request for allocation among the pools will be placed in the Money Market Pool.
The Investment Pools pursue the investment objectives by investing in a mix of registered mutual funds that are also managed by Northern Trust.
Promote Generations of Giving
If you wish, you may name Additional Advisors who are allowed to make independent grant recommendations during your lifetime. You also may name Successor Advisors—family members or trusted friends—to continue to make grant recommendations after your death. Or, you may recommend that a portion or the entire fund be distributed to designated charities after your death.
Convenient Online Access
Through Private Passportsm—Northern Trust’s convenient online access to personal financial information —you can review fund balances, the status of grants, contribution activity, or make new grant recommendations online.
Get in Touch
To find out more about the Northern Trust Charitable Giving Program, contact your Relationship Manager or phone a Northern Trust representative at 1-866-494-4273
Read and print the Charitable Giving Program product brochure
Read the latest trust information in our Estate Planning Library