You can use a wide variety of assets to make a charitable planned gift. The Museum most commonly receives the following, one or more of which may be ideal to accomplish your financial and estate planning objectives.
Gifts of cash to the Museum are the simplest and most common. Generally, you may claim an income-tax charitable deduction for the full value of your cash gift up to 50% of your subsequent adjusted gross income. If you are unable to use your entire deduction in one year, you may carry over and deduct the excess for up to five subsequent years.
Giving marketable securities that have appreciated in value is an especially prudent and economical way to support the Museum. Gifts of long-term appreciated stock or mutual funds offer a quick, easy, and tax-efficient way to make a lasting contribution to the Museum. The benefits include:
- Income Tax Savings. You may be entitled to an income tax charitable deduction of up to 30 percent of your adjusted gross income. The excess can be carried forward for up to five subsequent years.
- Capital Gain Tax Savings. Avoid capital gain taxes you would have incurred if you had sold the securities.
- Receive Income. By funding a life-income gift, such as a charitable gift annuity, with securities, you could receive income during your lifetime.
Closely held securities are often highly appreciated, especially if the corporation has grown from an individually owned or family-owned company. The potential capital gains tax on the stock’s appreciation may make a sale unattractive. By giving closely held stock to the Museum, you could receive an income tax deduction for its full fair market value and avoid all capital gains tax. Please contact the Museum’s planned giving and endowments professionals if you are considering making a gift of closely held securities.
Your IRA, 401(k), or other qualified retirement plan may be heavily taxed if left to anyone other than a spouse. By naming the Museum as a beneficiary of all or a portion of a retirement plan, you could avoid any estate tax and income tax that would be due on these tax-deferred plans if distributed to your non-spousal heirs. Retirement plan assets also may be ideal for funding a charitable remainder trust to provide income to a loved one after your lifetime.
Learn more about how to name the Museum as a beneficiary of retirement plan assets.
If you have a life insurance policy you no longer need, you might consider transferring ownership to the Museum. You may also purchase a new policy and then assign it to the Museum as the owner and beneficiary. A gift of an existing policy could generate an income tax charitable deduction, and annual contributions to the Museum in an amount equal to any insurance premiums will also enable you to potentially claim income-tax charitable deductions. Please contact the Museum’s planned giving and endowments professionals to determine whether the type of insurance policy you are contemplating donating is acceptable.
There are many ways to make a gift of real estate to the Museum. If you are considering such a gift, please contact the Museum’s planned giving and endowments professionals, who will be glad to explore with you how such a gift might help you combine your charitable and financial objectives. Please note the Museum must approve and accept any gift of real estate before the transfer of any real property may be finalized.