Charitable Remainder Trust
A charitable remainder trust (CRT) is a planned giving vehicle where a donor places assets in a trust, receives income during their lifetime, and the remainder goes to a nonprofit.
A charitable remainder trust (CRT) is an irrevocable trust that provides income to the donor (or other beneficiaries) for a set period or lifetime, after which the remaining assets are distributed to one or more nonprofit organizations. CRTs offer immediate tax benefits and long-term charitable impact.
Why It Matters for Fundraising
Charitable remainder trusts represent some of the largest gifts nonprofits receive. They appeal to donors with appreciated assets who want to avoid capital gains taxes while generating income and supporting a cause. For nonprofits, cultivating CRT donors means building relationships with high-net-worth individuals who are thinking about legacy and long-term impact.
How It Works
The donor transfers assets (cash, stocks, real estate) into the trust and receives an immediate partial tax deduction. The trust pays income to the donor for life or a term of years. When the trust terminates, the nonprofit receives the remaining balance — often a substantial gift that can fund endowments or programs for years.