CHICAGO, IL, October 3, 2002 Northern Trust today introduced its donor advised fund program, the Northern Trust Charitable Giving Program. Northern Trust now offers a simple and efficient way to assist donors with charitable giving that can be a viable alternative to establishing a private foundation.
"The Northern Trust Charitable Giving Program gives donors the ability to establish a tradition of giving through designation of family members and friends as additional advisors and successor advisors. In addition, the grant recommendation aspects of the program are very flexible. The donor can recommend grants even anonymously, if desired to areas of interest or specific charities," said Alison Winter, president of Personal Financial Services Midwest at Northern Trust.
"Because it is structured as a donor advised fund program, the Northern Trust Charitable Giving Program is less expensive than a private foundation, eliminating many of the fees associated with establishing a foundation along with the ongoing filings required for tax purposes," said Winter. Tax benefits are greater than those permitted for a private foundation: the donor immediately receives a federal income tax charitable deduction for lifetime gifts as well as unlimited estate tax deduction for transfers at death.
"The Northern Trust Charitable Giving Program fits in with Northern Trusts long-standing dedication to charitable giving and our history of partnering with local community foundations. In addition to expanding ways in which our clients can give to charities, Northern Trust oversees $116 billion for charitable foundations, endowments and healthcare organizations such as hospitals. Many employees of Northern Trust engage in volunteer work, sit on boards of directors for charities or participate in philanthropic activities," said Winter.
Working with a nationwide base of community foundations is important to the program, she noted. "We intend to broaden the scope of the Northern Trust Charitable Giving Program to encompass opportunities for giving through local community foundations across the country."
An initial contribution of at least $50,000 is required to participate in the Northern Trust Charitable Giving program. As with all donor advised fund programs, this initial contribution is donated to an existing public charity that serves as sponsor. This program is offered nationwide and donors may make grant recommendations directly to their local community foundation. Subsequent donations can be made with $10,000 or more. Donations to the Northern Trust Charitable Giving Program can consist of cash and publicly traded securities, including mutual funds, stocks and bonds. On a case-by-case basis, restricted publicly traded stock may be accepted. Assets held in a family foundation or other nonprofit organization, (e.g. publicly traded stocks, bonds, mutual fund shares or cash) are accepted in the Northern Trust Charitable Giving Program.
Investment pools managed by Northern Trust form the underlying investments in the Northern Trust Charitable Giving Program. Currently, donors can choose from three investment recommendation alternatives: the Growth Pool, the Income Pool and the Money Market Pool. Administrative, service and management fees will range from approximately 1.20% to 1.98%, depending upon the investment pools recommended. The program offers convenient online access to fund and grant-making through Northern Trust Private Passport.
For more information about the Northern Trust Charitable Giving Program, call 1-866-494-4273 or visit www.northerntrust.com.
The Northern Trust Company is the principal subsidiary of the Northern Trust Corporation (NASDAQ: NTRS; www.northerntrust.com), a global multi-bank holding company that has a legacy of more than 100 years of serving high-net-worth individuals, trusts, corporations and large institutions with financial services including master trust, custody and investment management. At June 30, 2002, the Northern Trust had more than $1.6 trillion in assets under administration and more than $327 billion in assets under management.
