Planned Giving

Several strategies reduce the amount of tax through charitable contributions:

•    Income tax savings are taken on your income tax return, provided you itemize
•    Gifts to a qualified charitable organization, during life and/or at death, avoid the federal estate tax
•    Life income plans allow you to designate a gift now and secure a current income tax deduction while you receive a life income for yourself and for a survivor
•    Assets that have grown in value can be used to bypass or reduce capital gains tax
•    You (your estate) can receive an estate tax deduction for making a bequest of qualified retirement plan accounts and traditional IRAs that would otherwise be taxed as income to your heirs as they receive it and negate the adverse income tax consequences to the individual beneficiaries 

The personal rewards of your charitable contribution may be more difficult to measure than the economic benefits, but no less meaningful. Gift planning permits you to leave an indelible mark on West Michigan. You can accomplish this in various ways, depending on your circumstances, through wills, trusts, and other estate planning options. You can make a general contribution to the museum’s endowment or designate it for specific education programs, acquisitions of art for the permanent collection, exhibitions, or professional support and services. We invite you to join other donors who have already arranged planned gifts at the Grand Rapids Art Museum and establish your legacy.  

Once you’ve chosen your beneficiaries, the next step is to select the best estate planning arrangements to implement your wishes. Keep in mind the needs of your beneficiaries, the protection of your money, and the impact of estate taxes. Here are some components of an estate plan.

    Your will. This disposes of your assets that won’t pass by other means and allows you to name a personal representative (executor) to settle your estate.

   Title arrangements. These can supersede the terms of your will. E.g., you may hold your home in a form of joint tenancy with your spouse, which entitles the survivor to full and outright ownership of that asset.

    Retirement plans. Benefits from your employer, a rollover IRA, or other retirement plan after your lifetime, will be paid to the beneficiaries you have designated in the plan.

    Life insurance. The proceeds are payable to the beneficiaries you’ve named under the options you selected in your policies or subsequent endorsements.

    Buy-sell agreement. This governs the sale of a closely held business, with the proceeds payable to a beneficiary named by the deceased owner.

    Trusts. You can create a trust in your will or by an agreement; the disposition of the trust assets will be governed by the terms of the trust agreement.

    Life income plans. In return for a gift to us or another charitable organization, you can arrange a life income for yourself and even a survivor from a charitable remainder trust or other plan. Ultimately, the remainder will be distributed to the charitable organization you’ve named in the plan.   

    Gifts of appreciated stocks or bonds.  You can contribute long-term appreciated securities (stocks or bonds held for over a year) and get a charitable deduction for the full present fair market value, and avoid capital gains tax on the appreciation.

    Gifts of real estate. Real property (e.g., house or land) that has been held long-term makes an excellent charitable contribution. You obtain an income tax charitable deduction equal to the property’s full fair market value instead of the lower cost basis and avoid capital gains tax on the property’s appreciation. The transfer isn’t subject to the gift tax, and it reduces your taxable estate. You can give us your home but enjoy its use for life by setting up a retained life estate.

Gifts are subject to review under gift acceptance policy. Appraisals required to establish value for tax purposes is the responsibility of the donor.

 

Endowments

When you make a gift to our endowment fund, it can either be outright or deferred (such as through a bequest in a will or trust). Either way, your one gift can turn into a legacy of annual gifts long into the future.

An endowment fund is a permanent fund invested to earn income each year, and as the principal grows, so does the income.  A portion of the income is rolled back into the endowed fund to help grow the principal and a portion of the income is spent for the purpose stated in the endowment agreement.

Endowed funds from $50,000 - $249,999 support museum education programs, scholarships and internships for students. Endowments of $250,000 and above may be identified with the donor name and established for a specific purpose defined by the donor such as operations, exhibitions, publications, art acquisitions and art conservation, or education and performance programs.

Endowment funds are a conservative and intelligent attempt to guarantee the future of our mission and to enhance the quality of our opportunities for service. And they allow you to leave a legacy.
 

Art. The Museum accepts gifts and bequests of fine art, sculpture and photography, subject to its’ Accessions Policy.

Cash. Donors may make planned gifts with cash by making a general bequest, a specific bequest, or a contingent bequest. Examples of each are provided in the “Will Wording” section. The bequest can be made in either a will or a trust.

Interests in business entities. Donors may make planned gifts with interests in business entities (example: closely held marketable securities, interests in limited liability companies, partnership interests).  

Life insurance. The proceeds are payable to the beneficiaries you’ve named under the options you selected in your policies or subsequent endorsements.  A beneficiary can include a charitable entity.

Real estate. Real property (like your house, farm, land, cottage, condo or commercial property) that has been held long-term makes an excellent charitable contribution. If you would like to continue living in your home, you can give us your home but enjoy its use for life by setting up a retained life estate.  Multiple owners (where applicable) must join in the gift.

Retirement plans. After your lifetime, these benefits will be paid to the beneficiaries you have designated in the plan. A beneficiary can include a charitable entity.

Royalties & distribution rights.  You can contribute royalties or distribution rights on published works (such as books or films) where there is clear evidence of marketability or assurance of a payment stream.

Stocks or bonds.  You can contribute long-term appreciated securities to us (for instance, stocks or bonds held for over a year) and get a two-fold income tax benefit: a charitable deduction for the full present fair market value, and no capital gains tax on the appreciation.

Tangible personal property. Art, antiques, jewelry, gems & furniture may be donated during your lifetime or by bequest. The Art Museum must give special consideration to these gifts before they can be accepted thus we advise you to contact the gift planning specialist if you are considering donating tangible personal property. 

Should you choose to make a planned gift to GRAM, we would encourage you to seek counsel with an estate planning attorney and advice of an accountant or other appropriate advisors who are familiar with your situation.

Sample language to help you define and execute your charitable intentions for making gifts by will, trust, or beneficiary designation to the Grand Rapids Arts Museum is provided below. Share this information with your estate planning attorney.

The Federal Identification Number for Grand Rapids Art Museum is 38-1387136.

General Bequest

I give and devise to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, all (or the percentage of ______%), of the rest, residue and remainder of my estate, both real and personal, to be used at the discretion of its governing board.  

I instruct that all my charitable gifts shall be made, to the extent possible, from property that constitutes “income in respect of a decedent” as that term is defined in the Internal Revenue Code.

Contingent Bequest

If (insert name) does not survive me, then and in that event, I give and bequeath to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, all of the rest, residue and remainder of my estate, both real and personal, to be used at the discretion of its governing board.  

I instruct that all my charitable gifts shall be made, to the extent possible, from property that constitutes “income in respect of a decedent” as that term is defined in the Internal Revenue Code.

Specific Bequest – Money

I give and bequeath to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, the sum of $_______ (or specified percentage of ____%), to be used at the discretion of its governing board (or according to the Memo of Understanding on file with said organization).

I instruct that all my charitable gifts shall be made, to the extent possible, from property that constitutes “income in respect of a decedent” as that term is defined in the Internal Revenue Code.

Specific Bequest - Securities

I give and bequeath to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, the following described securities or other personal property ______________, to be used at the discretion of its governing board (or according to the Memo of Understanding on file with said organization).

Specific Bequest – Real Estate

I give and bequeath to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, the following described real property ______________, situated in ______________ County, State of ______________, to use said property and the rents, income or proceeds arising therefrom or the proceeds of the sale thereof, to be used at the discretion of its governing board (or according to the Memo of Understanding on file with said organization).

Beneficiary Designation – Retirement Plan Assets

It may be easier than you realize to donate your retirement plan assets to charity and an effective way to reduce income and/or estate taxes. Options available to provide significant financial support to Grand Rapids Art Museum with your retirement plan assets (401k, 403b, IRAs) include:

•    Name Grand Rapids Art Museum, Grand Rapids, Michigan (EIN 38-1387136) as the primary beneficiary of all (or part) of the plan assets remaining after your lifetime;
•    Name Grand Rapids Art Museum, Grand Rapids, Michigan (EIN 38-1387136) at the death of your spouse; or
•    Name Grand Rapids Art Museum, Grand Rapids, Michigan (EIN 38-1387136) as the contingent beneficiary;

Request a change of beneficiary form at your place of employment or the financial institution managing your account.  Update the beneficiary designation form with the new beneficiary or beneficiaries; return the form to your plan sponsor and notify Grand Rapids Art Museum of your intent.

Beneficiary Designation - Life Insurance

Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), may be designated as the beneficiary on life insurance and annuity contracts.

Endowment Language

For endowments of $50,000 - $249,999:

I give and devise to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, the sum of $_________ (minimum charitable bequest must be $50,000), for the establishment of an endowed fund, to be held, administered, and used by its governing board to support museum education programs, scholarships and internships for students at Grand Rapids Art Museum. The earnings from the fund are to be disbursed per the terms of the completed endowed fund agreement on record at Grand Rapids Art Museum.

For endowments of $250,000 and above:

I give and devise to the Grand Rapids Art Museum, Grand Rapids, Michigan, (EIN 38-1387136), a nonprofit corporation organized under the laws of the State of Michigan, the sum of $_________ (minimum charitable bequest must be $250,000 and above), for the establishment of an endowed fund, to be held, administered, and used by its governing board for operations (or exhibitions or publications or art acquisitions and art conservation or education and performance programs  or __specify____) at Grand Rapids Art Museum. The endowed fund shall be named the ______________.

I instruct that all my charitable gifts shall be made, to the extent possible, from property that constitutes “income in respect of a decedent” as that term is defined in the Internal Revenue Code.