Thank you for considering a gift to the Museum of the Rockies. Your gift is a very personal decision. As you consider your gift, we’d like to share with you some advice that other donors have discovered. Read on to find out how your gift may be able to go a lot farther—and maybe even save you money on taxes.
1. I’d like to give cash now and see a tax savings: Museum of the Rockies, Inc. is a nonprofit organization and your gift is tax-deductible to the fullest extent of the law. For donors who itemize their tax deductions, the net cost can be much less than the actual amount of the gift.
Example: For a donor in the 28% tax bracket, the net cost of a $10,000 cash gift is only $7,200 after $2,800 tax savings.
2. I’d like to make a substantial gift, but don’t have the full amount available now: To increase your contribution to the Museum of the Rockies’ campaign, you may make a pledge now and spread payment of your gift—and tax deductions—over as many as three years. See below for examples of monthly, quarterly or annual payment schedules. If you wish, you may arrange for monthly charges to your credit card, or payments can be automatically debited from your checking or savings account at your preferred payment schedule.
3. I’d like to put the Museum in my will: Making a bequest to the Museum of the Rockies in your will is one of the most popular and simplest ways to make a planned gift. Your bequest will help to keep the Museum strong and vibrant forever. Under certain conditions, your bequest may be able to count toward the campaign goal. But under any condition, the Museum will be forever grateful for your generosity. Please consult your estate planner.
4. I’d like to get family members, my company, or a foundation to match my gift: Many corporations and foundations offer matching programs. Such programs may allow donors to double or triple the amount of their contribution, especially if the match is obtained each year of the pledge period. Please consult your benefits coordinator or human resources manager. If no formal matching program is established, ask your employer; your gift may be matched anyway. Individual families may also structure innovative “family” matches to involve everyone in creating a significant contribution to a capital campaign.
5. Can I save money by making my gift from my IRA? The IRA Charitable Rollover Act allows individuals ages 70 or older to make charitable donations of up to $100,000 from their IRAs without having to count the distributions as taxable income. This benefit is valid until the end of 2008.
6. I have appreciated stocks, bonds, and property I’ve been hanging on to because I don’t want to pay capital gains tax:
Increasingly popular alternatives to cash are gifts of appreciated property, such as securities. In many (if not most) situations, the full fair market value of gifts of appreciated property is deductible. Additionally, taxes on capital gains are often avoided. As always, the particular tax savings depends on individual circumstances and must be discussed with personal financial and tax advisors.
Example: A donor owns a stock currently valued at $25,000, which she purchased years ago for $120. She can take the full $25,000 as a Schedule A deduction to her taxable income; her income is in the highest Federal income tax bracket of 35%, so her income tax savings is $8,750. In addition, she avoids paying capital gains tax on the $24,880 increase in value of the stock had she sold it; at the highest capital gains tax rate of 15%, she saves $3,732 in taxes. She has avoided $12,482 in taxes, so the true cost of her $25,000 gift is only $12,518.
I’m ready to transfer a gift of stock. What do I do? To make a stock transfer, authorize your broker to transfer the securities you’d like to donate to:
RBC Dain Rauscher, DTC #0235 for further credit to The Museum of the Rockies
account #1101-2202-0373
Museum of the Rockies contacts at RBC Dain Rauscher are Bill Tierney and Scott Johnson, 800.284.3246.
7. The Montana Tax Credit for Endowed Philanthropy: This tax credit provides significant tax advantages for outright gifts from business entities, or planned gifts from individuals. Donors are advised to consult with their tax professionals to learn how to capitalize on this unique opportunity to have a substantial portion of their gift amount reduce taxes.
8. Memorials and Named Endowments: Establishing a memorial is a twofold gesture. First, you honor a loved one or yourself. Second, your charitable gift serves as an endorsement of our good works. Establishing an endowment fund not only offers ongoing support for the Museum, but it also provides tax benefits and a public memorial for the donor.
9. Charitable Gift Annuities: By donating through a gift annuity, you transfer assets to the Museum in exchange for our promise to pay one or two annuitants payments for life. An annuity funded with appreciated property can result in even more tax advantages.
10. Charitable Trusts: When you create a charitable remainder trust, you irrevocably transfer money, securities, or other assets to a trust that will then pay you an income for life or for a period of years. The trust can also pay income to another beneficiary. At the death of the surviving beneficiary, the remaining principal goes to the Museum. This plan can increase your income, reduce your taxes, unlock appreciated investments, rid you of investment worries, and ultimately provide very important support. If your goal is to provide an inheritance for your children, but you would also like to make a significant charitable gift through your estate, a charitable lead trust can help you satisfy both objectives.
11. Give Your Home, But Live There for Life: Your home can become a valued gift to the Museum of the Rockies, even while you are still living in it and receiving sizable tax benefits, and even if you want your spouse or other survivor to live there for life. This arrangement is called a retained life estate.
For more information contact Brenda O’Connor, Capital Campaign Manager, at bjo@montana.edu or 406.994.4974.