Charitable Remainder Annuity Trust (CRAT)
Donors can give through a CRAT by transferring a one-time contribution of cash or publicly traded securities to a charitable remainder annuity trust. This is an irrevocable gift. The trust pays the donor, or other people the donor designates, a fixed income for life or a specified term. At the end of the term, the principal remaining in the trust is passed on to the Foundation. A CRAT is most appropriate for donors age 65 and older whose gift is worth at least $50,000. The tax benefits include income tax deductions, capital gains tax avoidance, and estate tax deductions.
