Charitable Remainder Annuity Trust

Charitable Remainder Annuity Trust (CRAT) 

A Giving Strategy That Pays You Back

A Charitable Remainder Annuity Trust (CRAT) is a powerful way to make a significant future gift to Plains Art Museum while securing a fixed stream of income for yourself or a loved one—often for life.

It’s a smart solution for donors who want to support the arts and enjoy financial benefits, including tax savings and dependable income.

How a CRAT Works

  1. You transfer assets—such as cash, appreciated securities, or real estate—into an irrevocable trust.
  2. The trust pays you (or beneficiaries you name) a fixed annual income for life or a term of up to 20 years.
  3. When the trust term ends, the remaining assets go to Plains Art Museum to support its mission.

Benefits of a CRAT 

  • Fixed Income for Life or Term: Receive predictable payments, regardless of market performance.
  • Significant Tax Deduction: You may qualify for a charitable income tax deduction at the time of the gift.
  • Avoid Capital Gains Tax: When you donate appreciated assets, you can bypass capital gains taxes.
  • Legacy Giving: Support art, education, and community access for generations to come.

Example Scenario 

Susan, age 70, donates $250,000 in appreciated stock to establish a CRAT. She receives:

  • A guaranteed annual payout of $12,500 (5%)
  • A substantial charitable tax deduction
  • No capital gains tax on the stock transfer
  • The satisfaction of knowing the remainder will benefit Plains Art Museum

Why It Matters 

Your CRAT gift helps Plains Art Museum:

  • Keep admission free and the arts accessible to all
  • Deliver engaging art education to youth and adults
  • Support regional and emerging artists
  • Enrich cultural life across the Fargo–Moorhead region

Is a CRAT Right for You? 

CRATs are ideal for individuals who:

  • Want a reliable income during retirement
  • Hold highly appreciated assets
  • Care deeply about leaving a lasting legacy in the arts

Consult your financial advisor or estate planner to see how a CRAT fits into your overall goals. We’re happy to collaborate with your team and provide the language or documentation needed.