Deferred or planned gifts provide needed support for all of the ICA’s work: timely and celebrated art and exhibitions, compelling performances, innovative education programs, and cultural and civic leadership. Planned gifts can be used to endow specific interests and advance the mutual goals of donors and the ICA. Above all, they are a permanent legacy of those who have championed and worked for the institution.
For more information about Planned Giving at the ICA, please contact Katie Greenberg, Director of Development at 617-478-3198 or firstname.lastname@example.org.
JAMES SACHS PLAUT SOCIETY
The James Sachs Plaut Society was formed to honor ICA friends who have made a planned gift to the museum.
Read more below about the different ways to include the ICA in your estate plans:
A bequest made under one’s will is often the simplest way to make a meaningful gift to the Institute of Contemporary Art. 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% deductible for estate tax purposes.
There are a number of ways to structure your bequest so that your gift benefits you and the ICA:
- Outright bequest: a gift by will of a specific sum of money or property, including works of art
- Residuary bequest: a gift of 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 ICA only if other named beneficiaries predecease the person making the will
When you name children or other non-charitable heirs as beneficiaries of your retirement plans, they receive only a small fraction of the plan’s face value, since inherited assets of retirement plans are subject to both estate and income taxes. You may wish to designate the ICA as a beneficiary of all or part of your retirement plan assets and set aside other assets for your family and friends. As a tax-exempt organization, the ICA will generally receive the full amount of the plan’s value, and your estate will receive a charitable deduction for the value of the assets distributed to the ICA.
You may name the ICA as a beneficiary of all or part of a new or existing life insurance policy. 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.
LIFE INCOME GIFTS
Life income gifts benefit you and the ICA. By making a life income gift, you may increase your income, receive an immediate income tax charitable deduction, eliminate or reduce capital gains taxes, and reduce estate taxes. In addition, you have the satisfaction of knowing that your gift will provide much-needed support for the ICA.
Charitable Gift Annuities
A charitable gift annuity is a simple contract between you and the ICA. In exchange for your irrevocable gift, the ICA agrees to pay you (and/or another beneficiary named by you) a fixed sum each year for life. Annuity rates are fixed and are determined based on the age of annuitant(s). At the end of the annuity term, the gift balance is turned over the ICA. In addition to a secure, lifetime income stream (some of which may be tax-free), you also qualify for an immediate income tax charitable deduction, avoid capital gains tax on the gift transfer, and reduce your taxable estate – all while making a gift to the ICA.
Charitable Remainder Trusts
When you establish a charitable remainder trust, you made an irrevocable gift which is placed in the trust. You determine the payout rate, structure, and who oversees your trust, as well as how your trust is managed. Income from the trust is paid to one or more beneficiaries designated by you for a period of years. At the end of the trust term, the trust principal is turned over the ICA to be used as you set forth in the trust document. When you fund a trust gift, you not only receive an income stream for the life of the trust, but you also qualify for an immediate income tax charitable deduction, avoid any capital gains tax on the transfer, and reduce your taxable estate.
CHARITABLE LEAD TRUSTS
With a lead trust, you donate assets to a trust that makes payments to the ICA 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 are 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 enjoy a substantial reduction in estate and gift taxes on the future transfer to your heirs.
The Institute of Contemporary Art/Boston recommends that you discuss your gift plans with your own legal and financial advisers. Members of the ICA staff will be happy to work with you and your advisers on ensure that your gift meets your goals and the ICA’s needs.