Specified planned-giving trusts

Specified planned-giving trusts promote donations through trusts. The FY2011 tax system reforms enabled the establishment of a new system to promote further public interest activities (a system akin to the U.S. planned-giving trust system). The investment returns from entrusted funds are used for public interest activities, with donations provided to charitable organizations designated by the settlors from a list of charitable organizations with which the trusts banks and others have contracted (e.g., charitable organization, authorized nonprofit organizations).

The settlor, who is the donor, can designate which charitable organizations receive the donation, and this type of trust keeps the donor informed about the organizations' activities through regular activity reports provided by such charitable organizations.
Apart from the donor receiving a tax deduction for the donation, the donor receives preferential tax measures such as the tax exempt status of the investment returns.

Specified planned-giving trusts

HTB p18

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