A Charity Trust Deed is essential when establishing a charitable organization through a trust structure in the United States. This document is used to create a formal legal framework for charitable activities, ensuring compliance with both federal tax regulations (particularly IRC 501(c)(3)) and state trust laws. The deed details the trust's charitable purposes, trustee powers, administrative procedures, and asset management protocols. It serves as the primary governing document that protects the charitable intent of the settlor while providing trustees with clear guidance on their duties and responsibilities.
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1. Parties: Identifies the settlor, trustees, and beneficiaries of the charitable trust
2. Background: States the charitable purpose and intention to create the trust, including relevant legal context
3. Definitions: Key terms used throughout the deed including legal and technical terminology
4. Trust Objects: Specific charitable purposes and objectives of the trust, aligned with 501(c)(3) requirements
5. Trustee Powers: Powers and authorities granted to trustees in accordance with state and federal laws
6. Administration Provisions: Rules for trust management, decision-making processes, and compliance requirements
1. Investment Powers: Detailed investment authorities and restrictions for trust assets, used when trust involves significant investment activities
2. Advisory Committee: Structure and role of advisory committee, included when external oversight is desired
3. Dissolution Provisions: Process for winding up the trust and distributing remaining assets, included when specific dissolution requirements exist
1. Schedule of Initial Trust Property: Comprehensive list of initial assets transferred to the trust
2. Trustee Declaration: Formal acceptance and acknowledgment by initial trustees
3. Investment Policy: Detailed investment guidelines and restrictions for trust assets
4. Governance Procedures: Detailed operational procedures and protocols for trustees
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