Bequests, Charitable Annuity Trusts, Charitable Gift Annuities, Charitable Lead Trusts, Charitable Remainder Trusts, Charitable Unitrusts, Deferred Charitable Gift Annuities, Endowments, Life Insurance, Personal Property, Real Estate, Retirement Plans, Securities and Other Assets, and Works of Art

Gifts of Cash

Cash is the gift of choice for most members, either as an annual gift or pledged over a period of several years. A cash gift entitles you to a charitable deduction of up to 50% of your adjusted gross income. If all deductible gifts in a year exceed the 50% limit, the excess amount may be carried over as a deduction for up to five years.

Gifts of Appreciated Securities & Other Assets

Appreciated stocks and bonds are the second most popular assets donated to CMA. Such gifts are simple and may provide a greater tax benefit than an equivalent gift in cash. We can provide stock/bond power forms. We will be happy to assist you in making the transfer. Using appreciated assets entitles you to a charitable deduction for the fair market value of the donated asset, and you can avoid paying capital gains taxes you otherwise would pay upon the sale of the appreciated securities. This tax deduction may be up to 30% of your adjusted gross income, and any amount over this limit may be carried forward for five years.

Bequests

A bequest is the gift of an asset or property, conveyed in a will. Bequests allow you to retain full control of your assets during your life, but also give you the pleasure of knowing CMA will later benefit from your generosity.

Our office can provide samples of suggested language for different types of bequests. No matter which form of bequest you choose to donate to the CMA, it will be exempt from estate and inheritance taxes and therefore can significantly reduce the tax burden of your estate. The value of the bequest may be a charitable deduction for the taxable estate, and there is no limit to that deduction.

Here are some examples of ways you can provide for CMA through a bequest:

* Specific Bequests leave a specified amount of money, a piece of property, or a fixed percentage of your estate to the CMA.
* Residuary Bequests allow you to give the CMA the balance or a portion of the remainder of your estate after bequests to individuals and other estate expenses are paid.
* Contingent Bequests provide CMA a portion of your estate designated for another only if that person predeceases you.
* Codicils allow you to make bequests without creating a new will in the form of an addition to your will.

Further information about Bequests

Works of Art

Gifts of works of art are always welcome and are an important part of our collection. If you are considering donating during your lifetime or bequeathing a work(s) of art to the museum, please contact us and request a copy of our suggested language from the Office of Gift & Estate Planning. Because this is a unique type of gift, we request that you contact us so that we may arrange for a curator to meet with you and discuss the art work and your wishes.

Further information about Gifts of Works of Art

Personal Property

Everyone has personal property of value: works of art, antiques, jewelry, rare books or other collections (coins or cars, for example). Often such objects represent a hidden opportunity to give to CMA. If the property is of direct and immediate use to CMA in fulfilling its mission, you may receive a charitable deduction for its fair market value. If the donated property is not directly related to CMA's mission, you may deduct your cost.

Please contact us for more information.

Charitable Gift Annuities

A Charitable Gift Annuity is among the simplest, oldest and most popular ways of making a gift and obtaining income for life. In return for your gift of $10,000 or more, CMA guarantees to pay you and/or, if you wish, another beneficiary, a fixed amount quarterly for the rest of your lives.

You receive a current charitable deduction for the portion that represents the charitable gift (the amount of the gift which exceeds the value of the annuity received). Capital gains tax, if any, is spread over a lifetime, reducing taxes paid from your income. Additionally, a portion of the payments you receive may be tax free as they are returns from the original investment. The effective rate of return, including taxes saved, is often higher than market rates.

Further information about Charitable Gift Annuities

Deferred Charitable Gift Annuities

Deferred Charitable Gift Annuities are similar to Charitable Gift Annuities, except that payments begin at a date in the future chosen by you. This is a perfect use for mandatory IRA or 401K withdrawals. They can offset income taxes you may owe on these withdrawals. Deferred annuities provide a larger income tax deduction in the year they are funded and a larger guaranteed payout at the time payments begin than charitable gift annuities.

Further information about Deferred Charitable Gift Annuities

Charitable Remainder Trusts

As an alternative to an outright bequest, you may establish a Charitable Remainder Trust either during your lifetime or through your estate plan. These trusts are popular because they are flexible and can be tailored to fit your specific financial and philanthropic goals.

A Charitable Remainder Trust provides income to you and your family (either fixed or variable), significant tax savings, and substantial benefits to the museum after the trust terminates. A trust created during your life produces income, capital gain, and estate tax savings. Income can be distributed to you or to others you designate. A trust effective at the end of your life is a wonderful addition to retirement assets.

Further information about Charitable Remainder Trusts

Charitable Annuity Trusts

These are similar to unitrusts; the distinguishable difference is how the payments to the beneficiaries are calculated. Annuity trusts have fixed payouts every year of your life to you or others of not less than 5% of the initial fair market value of the gift in trust.

The fixed payout offers stability, especially for a beneficiary who needs the security of a specified income, because the amount of payment is calculated at the time of the gift. You receive a current substantial income tax deduction, and future trust payments may be taxed at a lower rate than your regular income. Estate tax savings are also possible.

Further information about Charitable Annuity Trusts

Charitable Unitrusts

With this type of trust, the annual payment amount distributed to the beneficiaries varies. You receive a percentage, a minimum of 5%, of the fair market value of the trust assets computed yearly.

Annual payments vary with the market and performance of the trust's investments. You can add to a unitrust, including additions by bequest. If you use appreciated property, you can increase the tax benefits. A unitrust is the option to explore for converting marketable real estate and unmarketable securities to income producing property.

Detailed information about Charitable Unitrusts

Charitable Lead Trusts

Often described as the mirror image of a charitable remainder trust, a Lead Trust pays income to the Museum for a period of years that you specify, usually 15 or more, after which the assets pass to your heirs. If you are concerned about passing your assets to your beneficiaries with the lowest tax cost possible, then a Lead Trust may work for you.

It provides current support to CMA and then passes wealth to the people you designate with significant reductions in gift, estate and other transfer taxes, sometimes passing the original trust amount virtually tax free to those you designate. You transfer assets to the trust, directing the trustee to pay CMA a fixed dollar amount or a fixed percentage of the assets each year, and at the end of the term you preserve a larger portion of your estate for your heirs. Please contact us for more information.

Further information about Charitable Lead Trusts

Real Estate

A residence, condominium, vacation home or farm may have appreciated so greatly in value that its sale would result in large and burdensome capital gains tax. You can give the property to CMA, therefore donating a substantial gift, avoid the capital gains tax and receive an income tax deduction.

Retained Life Estate: If you wish, you may continue to occupy the residence or operate the farm without disruption and still have a large income tax deduction. You may also choose to reserve the use of the property for someone other than yourself. If you have a retained life estate, you can later move out and rent out the property, retaining the rent, or you can sell the property and divide proceeds with CMA in proportion to each party's respective interest.  You can also later make a gift of the retained life estate.

Life Income Agreements: You need not remain in the residence or farm. You can transfer the real estate to CMA. CMA, acting as trustee, sells the property, invests the proceeds and you receive income for the rest of your life. Please contact us for more information.

Life Insurance

Almost everyone owns some form of life insurance. Giving it to the museum is a good and easy option that allows you to make a substantial gift. You may give a policy you already own, or purchase one to donate. A policy can also replace the value of an asset you have given CMA, and the insurance proceeds can go to your heirs tax-free.

Buy a policy, designate CMA as the owner and beneficiary, and your annual premium payments become tax deductible. You can also purchase a single-premium policy and deduct the full premium.

Give a fully paid-up policy no longer needed for family protection. When the ownership of a policy is transferred to CMA, you receive a deduction for an amount roughly equivalent to the cash surrender value. The insurance death benefit is also removed from your estate for tax purposes. Please contact us for more information.

Retirement Plans

An IRA, Keogh, 401(k), 403(b) or other retirement plan asset that is left to your heirs may be subject to income, estate, and other transfer taxes. Naming CMA as a beneficiary of all or of a specified percentage of your plan's assets eliminates both income and estate taxes.

Note that designating a specific dollar amount, as opposed to a specified percentage, will result in the inclusion of these funds in the gross income of your estate. These assets can also be placed in a remainder trust, which would provide income to your heirs for life, or a term of years, with the remaining interest passing to CMA. Please contact us for more information.

Endowments

All of the gifts described above can be used to create a permanent named endowment fund at the museum. Endowments are an important part of contributing to and securing the future programs and collection. An endowment can support the general operations of the Museum or a specific purpose. We will work with you to create an endowment that reflects your interest.

The Cleveland Museum of Art was founded with four planned gifts of land, assets, cash and securities that created the foundation to begin our permanent collection. Ever since, many people have used planned gifts as excellent opportunities to benefit themselves, minimize taxes, and gain personal satisfaction in knowing they have helped CMA ensure "art is for everyone for always."

Further information about Endowments

SUMMARY OF OPTIONS

Charitable giving is a flexible, creative process that meets your needs, satisfies your wishes, and increases your donation to the museum while reducing your tax burden. Our office can prepare, for your review, a personalized and comprehensive proposal that includes detailed tax and payment information about the options.

Charitable giving options can be summarized as follows:

OUTRIGHT GIFTS: 

Cash
Works of Art
Personal Property
Appreciated Assets

LIFE INCOME GIFTS:

Charitable Remainder Unitrust
Charitable Remainder Annuity Trust
Charitable Gift Annuities

DEFERRED GIFTS: 

Gift by Will or Bequest
Retained Life Estate
Life Insurance
Retirement Plans

CURRENT GIFT WITH
DEFERRED INCOME: 

Deferred Charitable Gift Annuities
Charitable Lead Trust


The information provided here is not intended as legal advice and is for educational purposes only. You should speak with your legal and financial advisors regarding how these techniques apply to your individual situation.

Additional information on many of the options above are available on this website by clicking on the underlined type of gift. Proposals with specific information for your needs are available at no charge and place you under no obligation. For a highly personalized and confidential proposal, please call the phone number below or contact us for more information.

(216) 707-2585

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