Can we count an OCLAT in our campaign totals?

Yes. The OCLAT generates an irrevocable, present-valued commitment that your institution can book under CASE guidelines. Unlike a revocable bequest expectancy, this is a hard number backed by a funded trust.

How is the OCLAT different from a regular CLAT?

The OCLAT is the optimized version — back-loaded annuity payments, zeroed-out gift tax deduction, and a structure designed to maximize both the charity's take and the family's remainder. Unlike a CRT, the university/charity is in first position and the donation isn't at risk.

Does an OCLAT compete with existing planned giving?

No — it complements existing planned giving. The OCLAT appeals to donors who would never make an outright gift of this size because they won't disinherit their families. It opens a new tier of giving, not a substitute for existing vehicles.

What is our institution's role in an OCLAT?

You identify the donor and make the introduction. nDowed handles trust design, tax modeling, legal drafting, and trustee coordination. Your team gets the relationship credit while nDowed does the technical work.

How will an OCLAT lead to bigger donations?

The OCLAT encourages donors to give more because they receive the donation back. For example, a $1M donation leads to $5M returned to the family assuming an 8% annual return. When donors know their family isn't being disinherited, they give at a scale they'd never consider with a traditional outright gift.

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Q: What if the donor's assets underperform?

The annuity is a fixed obligation of the trust, not a percentage of assets. Payments are made regardless of investment performance. The trust is structured with conservative assumptions at the Section 7520 rate floor so underperformance risk is engineered out.

The OCLAT lets your institution count a binding, asset-backed commitment on Day 1 — not a promise that might never come through. Your donors grow their wealth. You grow your endowment. Everybody wins.

Why the OCLAT Matters to Your Institution

Four Problems the OCLAT Solves

Most planned gifts are promises a donor can take back — and they often vanish when donors change their minds, switch advisors, or pass away before following through. The OCLAT fixes all four problems.

Irrevocable from Day 1

Unlike a pledge that can be taken back, the OCLAT is a legally binding trust that can't be undone. The donor can't cancel it, redirect it, or renegotiate. Your team can count the full stream of payments — in today's dollars — the moment the trust is funded. No more promises that never arrive.

Collateralized & Invested

The donated assets sit in a trust run by a professional trustee, growing over the term. The yearly payments are backed by the trust's own assets — not by the donor's future wealth or willingness. The money is real, and it's already at work.

Donors Say Yes More Often

Because the OCLAT returns money to the donor's family at the end, donors give more than they would with a one-time gift. Someone who might give $1M outright will fund a $3M–$5M OCLAT — so your institution gets more, not less.

Unlocks Mega NGC

Due to a little-known 2024 CASE change, the full committed value of a binding OCLAT now counts as New Gift Credit in the year it's made — no longer capped at five years. A single $10M OCLAT lands as $10M in new gift credit today, letting your team book the entire commitment up front instead of a fraction of it.

2024 CASE Update · Game-Changer

$10M OCLAT = $10M NGC Credit in Year One

The Council for Advancement and Support of Education (CASE) — the group that sets fundraising-reporting rules — updated its Global Reporting Standards. The full committed value of a binding, multi-year commitment now counts as New Funds Committed in the year it's made — no longer capped at five years.

How It Works for Your Team

From Prospect to Booked Gift

Your development officer finds the donor. We handle everything else — designing the trust, running the tax numbers, drafting the legal documents, and coordinating the trustee — in just two calls over two weeks.

Identify the Prospect

Any donor with $1M+ in assets and philanthropic intent is a candidate. Ideal prospects are already considering a planned gift, a naming opportunity, or a major endowment contribution.

Your Development Team

We Model the OCLAT

On the first call, we build a full tax and financial model — tailored to the donor's age, assets, the current IRS §7520 rate, and charitable goals. It shows exactly what the charity receives, what the family keeps, and the tax savings.

[n]dowed · Two Calls, Two Weeks

Joint Presentation to Donor

We present alongside your team — or privately to the donor and their advisors. The pitch is simple: "Give more to the charity, compound your family's wealth, and get a full tax deduction today."

Collaborative

Trust Is Funded

Once the donor approves, the OCLAT is drafted, reviewed, and funded. The irrevocable annuity stream begins. Your institution can book the present value of the full commitment immediately.

Bookable Immediately

Annuity Payments Flow

Over the 15–30 year term, structured annuity payments flow to your endowment on schedule. No follow-up required, no pledge reminders, no risk of donor default. The trust handles everything.

15–30 Year Stream

Common Questions from Gift Officers

What Your Team Needs to Know

"Can we count this in our campaign totals?"

Yes. Under the 2024 CASE Global Reporting Standards update, the full today's-dollars value of a binding OCLAT counts as New Funds Committed (NFC) in year one — not capped at five years. A $10M OCLAT = $10M in new gift credit, counted right away. It's a solid number backed by a funded, asset-secured trust.

"What if the donor's assets underperform?"

The yearly payment is a fixed obligation of the trust, not a percentage of its assets. Payments are made no matter how the investments perform. The trust is built on conservative assumptions — at the low §7520 rate set by the IRS — so the risk of falling short is designed out.

"How is this different from a regular CLAT?"

The OCLAT is the "optimized" version — payments weighted toward later years, a setup that erases the gift tax, and a design built to maximize both the charity's share and the family's leftover. Unlike a CRT, the university or charity is paid first and the donation isn't at risk.

"Does this compete with our existing planned giving?"

No — it adds to it. The OCLAT appeals to donors who would never make an outright gift this large because they won't cut out their families. It opens up a new level of giving, not a replacement for what you already offer.

"What's our institution's role?"

You find the donor and make the introduction. [n]dowed handles designing the trust, running the tax numbers, drafting the legal documents, and coordinating the trustee. Your team keeps the relationship. We do the technical work.

"How will this lead to bigger donations?"

The OCLAT encourages donors to give more because they get the money back. For example, a $1M gift returns $5M to the family, assuming an 8% annual return. When donors know their family isn't being cut out, they give at a scale they'd never consider with a one-time gift.

"We don't have the staff capacity for a new program."

[n]dowed provides a fully done-for-you platform covering all the legal, administrative, compliance, and donor-care work. We can also place a dedicated full-time gift officer at your institution at no cost — adding capacity without adding to your payroll or anything for you to manage. Your gift officers handle the relationships; we handle the complexity.

"Can we grant naming rights on an irrevocable commitment?"

Yes. The OCLAT creates a binding, asset-backed payment stream lasting decades — a strong basis to grant naming rights when the commitment is made rather than waiting for the cash to arrive. Duke University has taken exactly this approach for binding planned gifts.

Download the full OCLAT FAQ (PDF)

Head-to-Head

OCLAT vs. CRT — For Your Institution

Your team probably already knows the CRT (charitable remainder trust) — and the revocable gift in a will. Here's what the OCLAT changes for your endowment.

Feature	OCLAT	CRT	Revocable Gift (gift in a will)
Total to charity ($1M funded)	$3M+ over term	$250K–$400K remainder	Uncertain — can be revoked anytime
Bookable on Day 1?	Yes — irrevocable annuity	Potentially partial	No — non-binding intention
Collateralized?	Trust corpus backs every payment	Charity waits for remainder	No — nothing backs it
Donor's family keeps assets?	Yes — remainder to heirs tax-free	No — remainder goes to charity	Yes — until death
Donor willingness to fund	Higher — family gets assets back	Lower — family gives up principal	High — but easily changed later
New Gifts & Commitments (NGC)	Same as outright cash gift — booked 100% in year one	1× baseline	Reduced credit — revocable
IRS-compliant?	Yes — §170, IRC §7520	Yes — §664	Yes — but no deduction today