Planned Giving
The simplest method of donating to the Museum is with an outright gift of cash or securities.
CashA gift of cash is the most popular way of supporting the Museum. If you itemize your federal income tax return, gifts of cash ordinarily are tax deductible up to 50% of your adjusted gross income (AGI) in the year of your contribution (with a five-year carryover for the excess not utilized).
Securities
Next to cash, appreciated securities that are readily marketable are the assets most commonly donated to the Museum. When you donate appreciated securities, you generally do not realize any capital gains tax. If you itemize your federal income deductions, you may also receive a federal income tax charitable deduction (up to 30% of your AGI with a five-year carryover) for the security's full fair market value if you have held it long-term (i.e., for longer than twelve months). If the donated securities were held short-term (i.e., twelve months or less), only your cost basis is deductible.
Because of the potential double tax savings, a gift of appreciated
securities usually has a lower after-tax cost than an equivalent
gift of cash. For example, let us assume you are in the top
federal income tax bracket and own stock worth $10,000, which
you bought for $2,000 and have held for longer than twelve months.
If you sold the stock, you would be liable for $1,200 in capital
gains tax on the $8,000 gain. By giving the stock to the Museum, you
pay no capital gains tax and may receive a $10,000 charitable
deduction, saving you as much as $3,500 in income taxes. Your
tax savings are even greater if you factor in state and local
income taxes. The cost of giving a dollar in stock, in this
example, is only 53 cents. The cost of giving the same dollar
in cash is 65 cents, more than a fifth higher.
| Stock gift to the Museum | $10,000 | |
| Less Federal income tax saved @ 35% | ($3,500) | |
| Less capital gains tax saved @ 15% | ($1,200) | |
Actual cost of making gift (stock gift less tax savings) |
$5,300 |
|
Cost of giving $1.00 to the Museum |
$0.53 |
If you wish to maintain the composition of your stock portfolio, purchase the same securities in the open market. The newly acquired shares will then carry as their cost basis the current market value.
In addition to stock, you may donate bonds and mutual fund shares to the Museum.
If you are considering making a gift of securities to the Museum, contact the Development Office for information on the proper procedures, including Depository Trust Company instructions.