I just saw the news today: on January 27, Cai Lei, former vice president of Jingdong Group and who has been fighting ALS for 4 years,
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Some time ago, Cai Lei revealed that his breathing began to fail, and he was very close to death, and once thought that he might have come to the last day of his life.
The light of charity illuminates life and lights up the dawn of hope for ALS patients
In 2022, Cai Lei was established, which is the first charitable trust with the purpose of overcoming a certain disease.
Let's follow Ah Chen to learn about charitable trusts
What is a charitable trust
To put it simply, a charitable trust is a legal framework with charitable purposes, unspecified groups of people in society as beneficiaries, and trusts as means, and it belongs to a kind of charitable trust
First of all, it is different from a family trust.
It is only valuable when it is used or helped by others.
When wealthy families and high-net-worth individuals at home and abroad accumulate wealth to a certain stage, they begin to use charity to give back to the society.
Structure and requirements for charitable trusts
According to the Charitable Trust, it refers to the act of entrusting the settlor's property to the trustee, and the trustee will manage and dispose of it in his own name according to his wishes, and at the same time use the property to carry out charitable activities.
thereinto
1. The establishment of a charitable trust usually requires four steps: determining the trust property, determining the parties to the trust, signing the written trust document, and going through the relevant administrative procedures.
2. What is the minimum for a charitable trust?
At present, there are no relevant provisions in laws and regulations, and there is no threshold in theory, and the lowest is 1,000 yuan in the existing successful cases of filing, of course, this cannot cover the expenditure of charitable activities at all, so additional assets are needed in the future.
Of course, different trustees are starting to come up with it.
Advantages of Charitable Trusts
1. Before the advent of charitable trusts, high-net-worth individuals could only participate in charitable activities through charitable organizations or charitable donations. However, these two often cannot be both "trouble-free" and "reassuring".
2. No limit on scale, simple procedures, and self-determined deadlines: no need to set up special places and staff
3. Article 29 of the Regulations on the Administration of Foundations stipulates that the annual expenditure of public foundations for engaging in public welfare undertakings specified in the articles of association shall not be less than 70% of the total income of the previous year, and the annual expenditure of non-public foundations for engaging in public welfare undertakings specified in the articles of association shall not be less than 8% of the balance of the fund in the previous year.
4. According to Article 45 of the Charity Law, charitable trusts can also enjoy the same tax benefits as donations to charitable organizations as long as the filing procedures are completed. In addition to tax incentives, Article 45 of the Measures for the Administration of Charitable Trusts also stipulates that trust companies carrying out charitable trust business are exempt from risk capital and subscription to trust protection funds.
Family business, the far-reaching significance of setting up a charitable trust
1. Actively participating in philanthropy can enhance the social reputation and brand value of family businesses. This has a positive impact on the long-term development of enterprises and business cooperation. On the other hand, it is conducive to shaping corporate values
2. Through charitable trust activities, family members are united to pursue higher goals, which is conducive to improving family cohesion and identity
3. Benefit: Learn from the United Kingdom and the United States and other countries, in the tax deduction preferences, to achieve the purpose of legal tax saving, with the gradual development of mainland charitable trusts,
In summary, charitable trusts have many advantages over traditional philanthropic models (such as donating directly to beneficiaries or setting up charitable foundations, etc.).
Especially in the context of common prosperity, "charitable trust" as an emerging charity model;
While isolating wealth risks, achieving charitable purposes, and managing property preservation and appreciation, it is gradually becoming an important choice for more Chinese ultra-high-net-worth individuals to inherit the family philanthropic culture and carry out philanthropy in a more professional way
As a new type of philanthropy, charitable trusts have attracted more and more attention in recent years
Especially some of the big families,
In addition, for family businesses, doing charity through family trusts can also reduce the tax burden and allow more funds to be used for charity.