Investing school funds in repurchase agreements can be dangerous, since investment firms can fail, thereby causing schools to lose the money invested. Two methods of assuming control of repurchase agreements are described: a trust receipt and third party custody. The latter is more difficult, but more secure. (TE)

Charitable remainder trust (CRT) is formal, legal arrangement whereby individual irrevocably transfers assets to trust. Income produced by trust is paid out to grantor and spouse for remainder of their lives. Pooled income for smaller deferred gifts is similar to CRT. Explains how those trusts can benefit both school district foundations and…