If you are over the age of 70, it’s important to know that you can use your IRA to make charitable gifts.

Through the IRA Charitable Rollover provision, made permanent in 2015, you can donate up to $100,000 to the Community Arts Center Foundation (dba The Prizery) per year, directly from your account. Keep in mind this contribution will count toward your required minimum distribution (RMD), but will not be considered taxable income. Please contact your financial advisor to confirm your eligibility, and be sure to let us know if you are planning to make a gift.

Bequests play a critical role in helping the Community Arts Center Foundation (dba The Prizery) secure the future of its programming for generations to come.

Bequests are gifts by will, whether in the form of cash, securities, or other property, and may be fully deducted in determining federal and state taxes on your estate. CACF urges donors considering a bequest to consult an attorney.

There is no minimum amount for bequests. Donors may designate either a percentage of their residuary estates after provisions for survivors or others are fulfilled or a specific sum as a gift to the Community Arts Center Foundation (dba The Prizery). Donors may also designate a combination of these alternatives.

The most common types of bequests are:

• Residual bequest, which leaves to the Community Arts Center Foundation (dba The Prizery) all or a portion of the remainder of the estate after specific bequests, taxes, and costs have been paid;
• Percentage bequest, which provides that a stated percentage of a particular asset or of the estate be given to the Community Arts Center Foundation (dba The Prizery);
• Specific bequest, through which the Community Arts Center Foundation (dba The Prizery) receives particular property outright (for example, certain securities or a specific dollar amount of cash); and
• Contingent bequest, whereby the Community Arts Center Foundation (dba The Prizery) is a beneficiary of part or all of the estate upon the occurrence of certain specified events.

Sample Bequest Language
“I (name) of (city, state, zip), give, devise, and bequeath to the Community Arts Center Foundation (dba The Prizery)

• (the sum of $_____)
• (___ percent of my estate)
• (description of property)
• (the rest, residue, and remainder of my estate)
  for its unrestricted use and purpose.”

Identifying information for the Community Arts Center Foundation (dba The Prizery):

• Legal Title: Community Arts Center Foundation
• Corporate Address: 700 Bruce Street, South Boston VA 24592
• EIN: 54-1795927

A gift of life insurance can offer the Community Arts Center Foundation (dba The Prizery) critical financial support. Such a gift may be appropriate when the growth of your other assets or the reduced need of dependents decreases a life insurance policy’s value to you. There are numerous ways to make a gift of life insurance to The Prizery:

• Designate the Community Arts Center Foundation (dba The Prizery) as the beneficiary of an existing life insurance policy. Your estate will be entitled to an estate tax deduction if the insurance proceeds are ultimately paid to The Prizery.
• Give an existing life insurance policy. By making the Community Arts Center Foundation (dba The Prizery) the owner and irrevocable beneficiary of the policy, you receive a federal income tax deduction for the gift. If the policy is paid up, the donor’s deduction equals the replacement value. If there are outstanding premiums to be paid, the deduction is approximately equal to the cash surrender value of the policy. If you purchase a new policy on your life and give it to The Prizery, the deduction is for the premium payments made. Giving a life insurance policy irrevocably to The Prizery will get the value of that policy out of your estate and likely save estate taxes later.

A donor may wish to name the Community Arts Center Foundation (dba The Prizery) as a beneficiary of his or her qualified retirement plan, so the full or partial share of the remainder passes to The Prizery. Plans that are most appropriate for funding charitable gifts include profit-sharing plans, 401 (k) plans, and IRAs, among others. Ask your plan administrator for the appropriate form.

A gift of plan assets to the Community Arts Center Foundation (dba The Prizery) after a donor’s lifetime can be an attractive option for several reasons. Because of tax rules, the transfer of plan assets to family members, other than the spouse, at the death of the plan participant may trigger two federal taxes – estate tax and income tax – potentially consuming up to 70% of plan assets and leaving little to family members. Leaving other estate assets like cash, stock, or real estate to family members while making a charitable gift of plan assets could provide a major gift to the Community Arts Center Foundation (dba The Prizery) at minimal cost to heirs.

Life income plans provide a donor and/or other designated beneficiary with income throughout his or her lifetime. Life income gifts also offer benefits including the ability to make a significant charitable gift to the Community Arts Center Foundation (dba The Prizery) after one’s lifetime.

• Charitable Remainder Trust: A trust that pays income to one or more individual beneficiaries for life or a term of years, and then distributes the remaining assets to one or more charities.
• Charitable Lead Trust: A trust established for the benefit of a charity under which the charity receives income from an asset for a set number of years or for the trustor’s lifetime. Upon the termination of the trust, the asset reverts to the donor or the donor’s designee.

Under a Retained Life Estate, a donor irrevocably deeds a personal residence or farm to the Community Arts Center Foundation (dba The Prizery), but retains the right to live in it for the rest of his/her life, a term of years, or a combination of the two. The donor continues to pay real estate taxes, maintenance fees and insurance on the property. Even though the Community Arts Center Foundation (dba The Prizery) would not actually take possession of the residence until the end of the specified term, since the gift cannot be revoked, the donor qualifies for a federal income tax charitable deduction for a portion of the residence’s value.

Planned giving is a valuable opportunity for individuals to tailor special gifts that can benefit the Community Arts Center Foundation (dba The Prizery), now and in the future. Planned gifts can provide an individual with important reductions in current estate and income taxes, while maintaining or even increasing income from the donated assets involved.

Many vehicles exist to structure planned gifts, including bequests, charitable remainder trusts, charitable lead trusts, life insurance, and retirement plans. Depending on your goals for yourself, your family, and The Prizery, one or more planned giving vehicles can be considered.

A GIFT TOWARDS OUR FUTURE

Great institutions are built on great endowments, and at the Community Arts Center Foundation (dba The Prizery), a growing endowment is a foundation for which our organization can set new standards for delivering artistic and cultural excellence.

An endowment is an unrestricted fund that provides the financial underpinning to launch new initiatives, plan for future years, seize opportunities for institutional advancement, and confront unanticipated challenges.

Endowment funds work in concert with operating funds to give The Prizery a diversified financial platform capable of addressing both the current and long-term needs of our programs. While operating gifts help cover the annual costs of delivering mission, endowment gifts are invested to earn interest. Endowments offer a steady income stream for everything from basic needs to special programs and initiatives. Endowment growth thus ensures a larger income stream in future years.

Prizery supporters can help guarantee the future of innovative programs as well as corresponding outreach and access programs by making an endowment.

The Prizery is happy to recognize endowment gifts through annual donor recognition.