Planned Giving Opportunities Deferred Payment Gift Annuities With careful planning, there are many ways you can support the Dallas Museum of Art’s future while simultaneously meeting some of your own personal financial goals and objectives. Planned gifts, either stand-alone or as part of your overall giving, can help you make that special gift that seemed otherwise impossible. We hope that the information on this site will help you determine how you can reach your goals where the Dallas Museum of Art is concerned. This site outlines some of the many gift options available and their various tax and income benefits. Your financial advisor can help you determine which gift arrangement is right for you. You might be able to make a charitable gift AND increase your annual income, especially if you have low-interest CDs or stocks that pay low annual dividends. There are several different types of income-producing, or "life-income,” gifts. Each has different tax and income benefits. Consult your financial advisor to decide which gift is right for you. In exchange for your gift of cash and/or securities, the Dallas Museum of Art agrees to pay you (or someone else) a fixed dollar amount for life. The amount of income will not change. At your death, the remaining proceeds from the gift come to the Dallas Museum of Art. Your income payment is dependent upon your age (or the age of the named beneficiary) and the size of the gift. The older you are, the higher the corresponding payout rate is. At the Dallas Museum of Art, a beneficiary must be at least 60 years old and the minimum gift amount is $10,000. Charitable remainder trusts are another way to make a gift to the Dallas Museum of Art and receive income. These trusts offer greater flexibility than other arrangements. You can name yourself, yourself and your spouse, your children, or other loved ones as the income beneficiaries. Often you can even name more than one remainder beneficiary. For instance, you may choose to have the remainder ultimately split between the Dallas Museum of Art and another charity you hold dear. The kind of income that is paid out can be a fixed dollar amount (as with an annuity trust) or an amount that varies from year to year (as with a unitrust). These payments can be made for the beneficiary’s lifetime or for a term of years. Assets other than cash and securities (such as artwork or real estate) can also be used to fund a charitable remainder trust. You have the ability to select the trustee who will manage the trust and its investments. This can be the Dallas Museum of Art, you, a bank, or other financial institution. Deferred Payment Gift Annuities If you want to supplement your future retirement income, you might want to consider the deferred payment charitable gift annuity. You make a gift today but "defer" your income payments until some predetermined future date, often coinciding with your planned retirement. You also realize an immediate income tax deduction in the year you make the gift. At your death, the remaining proceeds from the gift come to the Dallas Museum of Art. The amount of your future payments is dependent upon your age at the time of the gift and the length of time you choose to "defer" the payments. This "deferral" often results in higher payout rates and a higher income tax deduction when compared with the immediate annuity. For these reasons, this kind of arrangement often appeals to
At the Dallas Museum of Art, a beneficiary can be any age but must defer the income until at least age 60, and the minimum gift amount is $10,000. Over the years, many individuals who have loved and valued the Dallas Museum of Art have left provisions in their will for the Museum along with their family and other charities. In doing so, they have ensured that this cultural treasure, for which they cared deeply, would thrive into the future. Thousands of people each year are able to enjoy the Dallas Museum of Art because of these visionaries. You can make a bequest through your will, trust, retirement plan, or life insurance. Should you choose to include the Dallas Museum of Art in your estate plans, we hope you will let us know so that you can become a member of our Munger Society. Wills You can include a provision for the Dallas Museum of Art in your will, living or other revocable trust. A bequest may be made for a specific dollar amount, a percentage of your estate or a percentage of the residue (the amount remaining after all other specific bequests have been paid). You may opt for a residuary bequest if you want the size of your gift to charity to increase or decrease accordingly with the growth of your estate. It is also possible for you to make a contingent bequest that provides for family or friends first and only benefits the Dallas Museum of Art if the named beneficiaries predecease you. Sample language to include in a will or in a codicil to a will: For an unrestricted bequest: I give (the sum of ______ dollars) or (all or ______ percent of the residuary of my estate) to the Dallas Museum of Art, Dallas, Texas, for its general purposes. These descriptions provide general information only. For specific information on your personal situation, please consult your legal and financial advisors. Designating Your Bequest Most bequests are designated for the Museum’s general purposes or endowment. It is also possible to designate your bequest for a more specific area of the Dallas Museum of Art such as acquisitions, education, conservation, or exhibitions; however, unrestricted bequests tend to be the most useful. Because it is difficult to know what the Dallas Museum of Art’s needs might be fifty years in the future, we encourage you to consider making your bequest as general as possible. Should you have questions about an area you wish to support, contact Libby Camp, Director of Major and Planned Giving, at 214-922-1330. Remember: A bequest must be carefully drafted to ensure that it does what you want it to do. Please review your plans and any suggested language with your attorney. Retirement Plans An increasingly popular and tax-wise way of making a bequest is to name the Dallas Museum of Art as a beneficiary of your retirement plan. You can do this by simply requesting a beneficiary designation form from your plan provider. You can name the Dallas Museum of Art to receive all of the plan’s assets or just a portion (%) upon your death, dividing the plan among family, friends, and/or other charities. There are tax advantages to making a charity the beneficiary of a retirement plan. Because retirement funds have never been taxed, you must pay taxes as you withdraw the funds. If you die before withdrawing the funds, any of the beneficiaries named must pay the income tax on these assets. Depending upon the size of your estate, the amount your heirs receive could also be reduced by estate taxes. In some instances, after all the taxes are paid, they may receive as little as 30% of the plan’s assets. The Dallas Museum of Art, as a nonprofit organization, would pay no tax on the proceeds. For this reason, some planners name the Dallas Museum of Art (and/or other charities they hold dear) as the beneficiary of their retirement plans, leaving all the other assets in their will to friends and family who can receive "non-retirement assets" such as a house, investments, a car, etc., without having to pay income tax. The plan provider may ask for a tax identification number in order to add the Dallas Museum of Art as a beneficiary. Please contact Libby Camp, Director of Major and Planned Giving, at 214-922-1330 for more information. Life Insurance If you own life insurance that is no longer needed by family members, you may want to consider giving it to the Dallas Museum of Art. You may simply name the Dallas Museum of Art (and/or another charity) as the beneficiary of the policy. It is also possible to name the Dallas Museum of Art as both the owner and beneficiary. Doing so may allow you to take an income tax deduction for a portion of the policy’s value. Charitable Lead Trust If you wish to combine a gift to the Dallas Museum of Art with a gift of assets to your children, grandchildren, or other heirs, you may want to consider establishing a charitable lead trust. A lead trust offers some significant tax advantages, including the ability to reduce transfer taxes, thus passing more of your assets on to heirs. You may be familiar with income-producing gifts (such as gift annuities, pooled income funds, and charitable remainder trusts). Though they vary in certain respects, they all share two points. They provide
A charitable lead trust is essentially the opposite of an "income-producing gift." It provides
With a lead trust, you transfer assets to the trust. The trustee pays an annual sum to the Dallas Museum of Art (and/or another charitable institution) for a specific term of years, usually ten to twenty-five. When the trust terminates, the principal remaining plus any appreciation is transferred to your named beneficiaries, typically children or grandchildren. One of the benefits of such an arrangement is that you receive a federal estate tax deduction equal to the estimated value of the annual trust payments to the Dallas Museum of Art. Moreover, any appreciation in the assets transferred to the trust during the term of years is not subject to additional estate tax. As a result, you are often able to pass on to your heirs a larger estate after tax than would otherwise be possible. As you can imagine, these arrangements are particularly complex and require the careful review and consultation of your own advisors. The Dallas Museum of Art has received amazing works through generous gifts from collectors who have chosen to share their artistic vision and passion by contributing works of art to the DMA. Throughout the decades, these inspiring, bold collectors have helped shape the encyclopedic collections for which the Dallas Museum of Art is known. Museum staff and curators will be happy to discuss with you the process of making a promised gift of art to the Museum. Should you have any questions, contact Libby Camp, Director of Major and Planned Giving, at 214-922-1330 or lcamp@DallasMuseumofArt.org.
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