income gifts

You can also defer your annuity payments to a future date, such as retirement. Deferring payments typically results in higher annuity payments and a larger tax deduction in the year of your gift.

Example
A 73-year-old individual makes a $25,000 gift to DHS for a charitable gift annuity. They might receive annual payments of approximately $1,500 (this is an example only and will vary based on current rates), a portion of which is tax-free. They will also receive a charitable income tax deduction in the year the gift is made.

Individuals age 70½ and older can use a Qualified Charitable Distribution (QCD) from their IRA to fund a charitable gift annuity. This offers a tax-efficient way to support DHS. 

Please note

• This is a one-time opportunity, with a limit of $50,000 per individual (or $100,000 for a married couple).
• The entire annuity payment is taxable.
• There is no charitable deduction for the QCD, but the QCD itself is not taxed.

Example
A 72-year-old individual can use a QCD of up to $50,000 from their IRA to fund a charitable gift annuity at DHS. While the annuity payments will be taxable, the initial transfer from the IRA avoids taxation, offering a significant tax advantage.*

A Charitable Remainder Trust (CRT) is a flexible and tax-efficient way to give to the Detroit Historical Society (DHS) while receiving income during your lifetime—or for a set term. You transfer assets (cash, securities, or other property) into an irrevocable trust, receive annual payments, and leave the remainder to DHS when the trust ends.

Why Consider a CRT?

• Income for life—or a term: Choose from a fixed-payment Charitable Remainder Annuity Trust (CRAT) or a variable-payment Charitable Remainder Unitrust (CRUT).
• Immediate tax benefit: You may receive a partial charitable income-tax deduction when you fund the trust.
• Avoid capital gains tax: When you transfer highly appreciated assets, the CRT can sell them tax-free, making more of their value available.
• Legacy for DHS: After the income period, the remaining trust assets support the mission of DHS — from education and exhibitions to general operations.
• Estate planning advantages: CRTs help you balance your philanthropic goals with the financial security of you and your beneficiaries.

Example
Anne and David wanted to support Detroit’s history but also needed income for their retirement. They created a Charitable Remainder Trust by contributing appreciated stock. For the next 20 years, the trust pays them quarterly income, and when the term ends, the remaining assets go directly to DHS to fund public history programs. They enjoyed tax benefits right away and left a meaningful legacy for their community.*

How to Create a CRT

1. Consult your advisors: Discuss with your financial planner, CPA, and estate attorney to evaluate how a CRT fits your goals.
2. Decide on trust type: Choose between a CRAT (fixed payments) or CRUT (variable payments) based on your income preferences.
3. Transfer assets: Fund the trust with cash, publicly traded securities, or other eligible property.
4. Set payment parameters: Determine how often and how long the trust will pay you (or other beneficiaries).
5. Formalize your intent: Sign a trust agreement with DHS and your advisors, documenting how the remainder gift will be used by DHS.
6. Monitor and report: Receive annual statements showing payment history, trust performance, and the growing remainder value.

Next Steps
If you’re interested in setting up a Charitable Remainder Trust to support the future of DHS while retaining income, please reach out to our development team.