Create a Lasting Legacy
A planned gift to CMATO offers a lasting legacy for you and your family and a testimonial to your love of art. It is also a way for you to advance the mission of the Museum while maximizing benefits to you and your family in the form of tax benefits. A planned gift often provides you an opportunity to make a larger gift than you thought possible.
There are a number of ways to make a planned gift to CMATO.
Donate cash, appreciated stocks, bonds or mutual funds shares that you have owned for more than one year.
- You receive an immediate income tax deduction for the fair market value of the securities on the date of transfer.
- You pay no capital gains tax on the transfer when the stock is sold.
- Giving appreciated stock can be more beneficial than giving cash. The "cost" of your gift is often less than the deduction you gain by making it.
Defer a gift until after your lifetime by including a bequest provision to CMATO in your will or revocable trust.
- Your assets remain in your control during your lifetime.
- You can modify your bequest if your circumstances change.
- You can direct your bequest to a particular purpose, but check first with CMATO to make sure your gift can be used as you intended.
- There is no upper limit on the estate tax deductions that can be taken for charitable bequests.
- Your gift will benefit CMATO in the future just as you intend it to today.
IRA Charitable Rollover
Use Your Traditional IRA to Make Your Charitable Gifts in 2016
IRA Charitable Rollover Gifts Permanently Extended
In 2006 Congress made a change to the tax law that allows individuals age 70½+ to make charitable gifts directly from a traditional IRA account to charity without incurring federal income tax on the withdrawal.
H.R. 2029, the Protecting Americans from Tax Hikes Act of 2015, made this provision a permanent, rather than temporary, part of the tax code. The IRA Charitable Rollover provides you with an opportunity to make a gift during your lifetime from an asset that would be subject to taxation if it remained in your taxable estate.
- You must be age 70½ or older at the time of gift.
- Transfers must be made directly from a traditional IRA account by your IRA administrator to the CMATO. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
- Gifts must be outright. The legislation does not permit direct transfers to charitable trusts, donor advised funds, charitable gift annuities or supporting organizations.
- Qualified charitable distributions can total up to $100,000.
(Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).
- Count towards your minimum required distribution for the year from your IRA.
- If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
Please consult with your tax advisor if you are contemplating a charitable gift under the extended law.
Charitable Gift Annuities
If you would like to support CMATO and still receive payments during your retirement years, a charitable gift annuity may be the perfect giving vehicle for you. With a simple contract, you agree to make a donation of cash, stocks or other assets to the CMATO. In return, you receive a fixed amount each year for the rest of your lifetime.
- Your initial gift is partially income tax–deductible.
- Your charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy.
- Your payments are not affected by the economy.
- The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.
- If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.
Charitable Remainder Trust
Charitable remainder trusts, allow you or other named individuals to receive income each year for life or a period not exceeding 20 years from assets you give to the trust you create. Payments can be either variable or a fixed amount. After the life of the named individuals or the set period of years, the balance in the trust goes to the charities of your choice.
- A partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
Life insurance gift
If the original intended purpose of your life insurance policy no longer applies, such as to educating your now grown children or to provide financial security for a spouse now deceased, your life insurance can be redirected to help support CMATO. You may name CMATOas the primary beneficiary. (Naming CMATO as beneficiary while you retain ownership of the policy, does not qualify you for an income tax deduction). You can name CMATO as the beneficiary and also assign us ownership of the policy as a current charitable gift. Naming CMATO as the primary beneficiary provides the following tax benefits:
- You receive an income tax charitable deduction, available under most circumstances.
- You realize tax savings from use of the deduction, and these savings can be invested for future income.
- You reduce your future estate tax liability.
Endowment Gifts — Invest in Our Future
An endowment gift to CMATO is an investment in CMATO’s future. When you make a donation to our endowment, you give a gift with both immediate and long-term benefits.
Endowment donations are invested and the principal is not used. A portion of the annual income from the investment is used to support needs at CMATO.
Gifts of Real Estate
You may deed your home, vacation home, undeveloped property, or commercial building to CMATO while continuingto use the property rent-free. Ownership would pass to CMATO when you no longer have use for the property. CMATO would then wither use the property or sell it and use the proceeds to further the mission of the Museum.
- You receive an income tax deduction for the fair market value of the real estate.
- You pay no capital gains tax on the transfer.
Gifts of Art
Please call us for more information.