A planned gift is a wonderful way to leave a legacy of generosity that lives on. This chart details ways to make a planned gift and the benefits that may apply to you and your family.
Information contained on this website is not a substitute for legal or tax counsel. Appropriate legal, tax, accounting and financial assistance should be sought in connection with any planned giving.
Type of Gift
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Benefit to CAC
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Benefit to Donor
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Comments
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| Bequest |
CAC receives an outright gift to the endowment upon the donor's death |
- Opportunity to make a gift to CAC that will continue in perpetuity
- Estate tax charitable deduction
- Easy to do
|
Can be done through a new will or trust, or by a simple codicil or amendment |
| Charitable Gift Annuity (through the Fine Arts Fund) |
CAC receives the remaining principal of the original gift at the time of the donor's or annuitant's death |
- A fixed, guaranteed lifetime income stream, a portion of which is tax-free
- The older the donor, the greater the annuity rate
- Immediate income tax deduction for a portion of the value of the gift
|
- Very attractive for older donors
- Minimum gift is $10,000*
- Minimum donor age is 60*
* Fine Arts Fund minimums
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| Insurance Policy |
CAC receives the full face value of the policy upon the death of the donor. |
- Income tax deduction for replacement value of the policy (for a fully paid up policy)
- Premium payments may be deducted (for non-paid up policy)
- Estate tax deduction
- An easy gift for a donor who has a policy they no longer need
|
- Can be a gift of the entire policy or a percentage
- Can be a gift of a fully paid-up policy; a policy with premiums remaining to be paid; or simply a beneficiary designation on a policy the donor still owns (tax benefits to donor will vary)
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| Charitable Remainder Trust |
At the end of the beneficiary's life or term of years, the trust ends, and the principal and any accumulated income is paid to CAC (ie, the charity receives the "remainder")
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- An income stream (can be either fixed or variable) for life or a term of years
- Donor can convert low-income, appreciated securities without incurring capital gains tax
- Donor receives a partial income tax deduction at the time of the gift
|
Only practical for gifts of 6 figures or more |
| Charitable Lead Trust |
CAC receives an income stream from the trust during the donor's lifetime or for a term of years. Afterwards, the assets of the trust revert back to the donor or donor's heirs (ie, the charity receives the initial or "lead" benefit)
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- At the end of the trust period, the principal (and any appreciation) returns to the donor or other beneficiaries
- Principal and its growth can pass to others with little or no shrinkage from taxes
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Only practical for gifts of 6 figures or more |
IRAs and similar retirement plans
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CAC becomes the beneficiary of the assets (or a portion of the assets) remaining in the plan at the donor's death |
Estate tax and income tax (on accumulated income) are avoided |
Under current law, generally only works well for gifts made at death, not during lifetime |
Information contained on this website is not a substitute for legal or tax counsel. Appropriate legal, tax, accounting and financial assistance should be sought in connection with any planned giving.
