Planned Giving

A donor-advised fund (DAF), which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to the Speed Art Museum and other qualified charities. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts. To recommend a gift from your DAF, please use The Speed Art Museum’s federal tax ID number: 61-0444823.

A bequest made under one’s will is often the simplest way to make a meaningful gift to the Speed. You may write a new will or simply add a codicil to your existing will. Bequests may come in any form–cash, securities, and other personal property, including works of art. Your charitable bequest is 100 percent deductible for estate tax purposes.

There are a number of ways to structure your bequest so that your gift benefits you and the Speed:

• Outright bequest: a gift by will of a specific sum of money or property, including works of art
• Residuary bequest: provides the Speed with a percentage or all of the remainder of a donor’s estate after specific bequests, debts, taxes, and estate expenses have been paid.
• Contingent bequest: a gift that benefits the Museum only if other named beneficiaries predecease the person making the will.

When you name children or other non-charitable heirs (other than your spouse) as beneficiaries of your retirement plans, they receive only a small fraction of the plan’s face value, with inherited assets of retirement plans being subject to both estate taxes and income taxes. You may wish to designate the Speed as the beneficiary of all or part of your retirement plan assets and set aside other assets for family and friends. As a tax-exempt organization, the Museum will generally receive the full amount of the plan’s value.

You may want to donate an old insurance policy to the Speed. Depending on the type of policy donated, you may receive an immediate income tax deduction and be able to deduct any future premium payments on the policy.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 made the IRA charitable rollover permanent.

Altruistic taxpayers have embraced the IRA charitable rollover as an opportunity to transfer up to $100,000 each year to charity without it being treated as a taxable distribution.

Here are the requirements and restrictions for making an IRA charitable rollover gift:

• The donor must be 70 1/2 or older.
• The gift must be made directly from the IRA to an eligible charitable organization.
• Gifts to all charities combined cannot exceed a total of $100,000 per taxpayer for the year.
• The gifts must be outright, and no material benefits can be received in return for the gifts.
• The qualified distribution described above applies to a traditional IRA. Distributions from employer-sponsored retirement plans, including simple IRA plans and simplified employee pension (SEP) plans, are not eligible for the tax-free rollover.
• This may be the right gift for you to make if:
• You want to make a charitable gift and your IRA constitutes the largest share of your available assets.
• You are required to take a minimum distribution from your IRA, but you do not need additional income.
• You do not itemize your deductions. In that case a personal IRA distribution increases your taxable income without the benefit of an offsetting deduction. An IRA charitable rollover will not be included in your taxable income even if you do not itemize other deductions.
• You live in a state where retirement-plan distributions are taxable on your state income-tax return, but your state does not allow itemized charitable deductions.
• You would like to make an additional charitable gift, but it would not be deductible because of the annual limitation of 50 percent of adjusted gross income for charitable contributions. The IRA charitable rollover is equivalent to a deduction because it is not included in taxable income.
• You have an outstanding pledge to a charity. The IRA charitable rollover can satisfy a pledge without violating rules against self-dealing.

When you establish a charitable remainder trust, you make an irrevocable gift which is placed in the trust. You can retain a certain payment that lasts for your lifetime (or includes a spouse or others). At the end of the trust term, the trust principal is turned over to the Speed to be used as you set forth in the trust document. When you fund a trust gift, you not only receive a stream of payments, but you also qualify for an immediate income tax charitable deduction, defer capital gains tax on the transfer, and reduce your taxable estate.

With a lead trust, you donate assets to a trust that makes payments to the Speed for the term of the trust. When the trust terminates, the assets are transferred back to you or directly to your heirs, as pre-designated by you. If the trust assets revert to you at the end of the trust term, your gift entitles you to an immediate income tax charitable deduction. If the trust assets are transferred to someone other than you at the end of the trust term, you may enjoy a substantial reduction in estate and gift taxes on the future transfer to your heirs.

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