Charitable Remainder Trusts

Solutions for Large Donations

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. At the end of the trust term, the balance in the trust goes to the National Audubon Society.

These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:

Most common is the unitrust, which pays you a variable amount based on a percentage of the trust assets’ fair market value. The amount of your payments is redetermined annually based on market performance. Many unitrust donors also make additional payments into the trust over time to increase their income and charitable impact.

The annuity trust is less common, paying you the same dollar amount you choose at the start. Your payments stay the same regardless of market performance. However, annuity trusts cannot be funded with real estate assets or added to over time.

Download Trusts Information Sheet

An Example of How It Works

Woman hugging dog Susan, 75, wants to make a gift to Audubon but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360* in the year she creates and funds the trust. This deduction saves Susan $92,915 in her 32% tax bracket.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

Contact us at 212-979-3033 or plannedgifts@audubon.org to talk about supporting Audubon by setting up a charitable remainder trust.
Seek the advice of your financial or legal advisor.
If you include Audubon in your plans, please use our legal name and federal tax ID.

Legal name: National Audubon Society, Inc.
Address: 225 Varick Street, 7th Floor, New York, NY 10014
Federal tax ID number: 13-1624102

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.