A Planned Gift, is a donor’s intention to contribute a gift to an organization beyond their lifetime. Essentially, donors make arrangements for planned gifts in the present but they are actually distributed at a later date, often as part of their financial or estate plans. For more information contact Executive Director Hillary Esser.
While unrestricted gifts allow the Museum to allocate funds to the areas of greatest need, your Planned Gift can also be designated to support a specific Endowment Fund or Giving Campaign, secure a special Naming Opportunity, or create a lasting Memorial. For significant gifts of $100,000 or more, we invite you to join our Mitchell Society and leave your legacy at Cedarhurst! Read more about the many options here.
WAYS TO GIVE
Universal wisdom says that every adult should have a will and should review it periodically to keep up with changes to state and federal laws and changed family circumstances. No single document has greater control over how the assets of your life’s efforts will be handled after your passing. If you have been supporting Cedarhurst and desire to continue that support after your passing, it will not happen without a will.
A bequest is simply a gift to Cedarhurst through your will. It is the most common method of leaving assets to an institution that you have been supporting. Donors can designate Cedarhurst as the beneficiary of cash, personal property, real estate, stocks, etc. in their will. A donor can designate a specific dollar amount, a particular asset, a fixed percentage of their entire estate, or leave their residuary estate after providing for loved ones. There are four types of charitable bequests:
- General Bequests: gifts of property taken from the assets of an estate.
- Demonstrative Bequests: gifts that come from a source, such as a bank account.
- Specific Bequests: gifts of personal property such as cash, jewelry, or other tangible assets.
- Residuary Gifts: gifts that come from the remainder of any debts or expenses that have been paid along with other bequests that have been made.
A bequest to Cedarhurst can have a significant impact on programs. A $10,000 bequest to the endowment fund may provide $500 per year of operating income. If you have a current membership at $500, this is a way to continue to support of Cedarhurst long after you are gone. If you are a sponsor at $4,000, a bequest of $100,000 may provide $5,000 annually to Cedarhurst programs. Art work, sculpture or buildings can also be part of a bequest.
In its most simple form, an endowment is a fund set up to provide long-term support to a non-profit organization. Cedarhurst welcomes unrestricted gifts for the original endowment fund created by John and Eleanor Mitchell.
With the help of special donors, Cedarhurst has also established several Friends endowment funds based around core program areas: Performing Arts, Visual Arts, Education, and the Beck Family Center. In the coming years, we also hope to create a Friends of the Sculpture Park Fund.
Anyone can contribute to an existing Friends endowment for as little as $5,000, and money earned from such gifts are restricted for use in that program area. You may also set up a new endowment fund – to honor a loved one or to create your own legacy – with a minimum gift of $100,000.
Also known as a charitable gift annuity, this type of gift provides the donor with guaranteed income and allows them to receive a charitable deduction for the value of their future gift. Annuities require a simple contract between the donor and Cedarhurst, and they allow donors to enjoy financial benefits now, while leaving a lasting legacy that will benefit Cedarhurst for generations to come.
A Trust is a legal entity whereby an individual holds or invests property as its titular owner. This can be for one or more beneficiaries. Charitable trusts have been used to pass substantial wealth from generation to generation. There are two types of trusts:
- Charitable Remainder Trust: This is a tax-exempt trust created to reduce an individual’s taxable income by dispersing their earnings to the beneficiaries of the trust over time. The remainder of the trust goes to the organization outlined in the trust.
- Charitable Lead Trust: This is the inverse of a charitable remainder trust. The trust provides financial support to multiple causes over a specified period of time. The remainder of the trust then goes to the other beneficiaries (family members, friends, etc.)
LIFE INSURANCE POLICY
Many individuals have older life insurance policies with paid up premiums and a face value that might seem rather insignificant as compared to today’s new policies; however, life insurance policies are an ideal gift to Cedarhurst. The John R. and Eleanor R. Mitchell Foundation (the legal name for Cedarhurst), upon death of the insured, then receives the proceeds. Additionally, the ownership of the policy could be transferred to the Mitchell Foundation with the donor then taking a current year tax deduction for the cash value in the policy.
GIFTS OF STOCK OR SECURITY
Many people make gifts of stock for both annual gifts and planned gifts. There is a tax deduction on the current market value and avoidance of capital gains tax.
If you have a traditional IRA, at the age of 70-1/2 years you must begin taking Required Minimum Distributions (RMD) from your tax-deferred retirement account based on your age and account value. The RMD is taxed as ordinary income, however, you can transfer up to $100,000 annually to a qualified non-profit like Cedarhurst without paying tax.
No matter what avenue you choose, your planned gift will support Cedarhurst’s mission, ensuring that we continue to connect people to art, preserve community treasures, and generate creative energy for future generations.
Special recognitions are often coordinated to commemorate Planned Gifts, and donors who contribute $50,000 or more are recognized on a Donor Tribute plaque displayed at the front of the Museum. Donors are also recognized on the website and in the Museum’s biennial report.
Including Cedarhurst in gift planning demonstrates an extraordinary commitment to the community. Often, we are unaware that an individual has provided for Cedarhurst in their estate until their passing. We encourage advance notice so we can ensure that your wishes are recorded and followed exactly as intended. If you prefer to remain anonymous, be assured that we will honor your wishes and respect the confidential nature of your gift.
Planned gifts made to Cedarhurst have a profound impact in the organization and often provide tax advantages for donors and their families. Consult your professional advisor to consider philanthropic objectives.