Charitable Lead Trust

Protect Your Assets_

You can benefit from the tax savings that result from supporting Smithsonian Institution without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.

There are two ways that charitable lead trusts make payments to Smithsonian:

A charitable lead annuity trust pays a fixed amount each year to Smithsonian and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to Smithsonian go up as well.

An Example of How It Works

Father smiling with childrenGeorge would like to support Smithsonian and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to Smithsonian each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

Gifts That Pay

Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.

Next Steps

  1. Contact the Office of Gift Planning at 888-419-7584 or legacy@si.edu to talk about supporting Smithsonian by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Smithsonian in your plans, please use our legal name and federal tax ID.

Legal Name: Smithsonian Institution
Address: 1000 Jefferson Drive, SW, 4th Floor PO Box 37012 MRC 035 Washington, DC 20013-7012
Federal Tax ID Number: 53-0206027