Planned Giving Options

Know your options.

Gifts of Stock

Gifts of Stock may generate favorable tax benefits. If you make a gift to Carnegie Museums of Pittsburgh of publicly traded securities that have been held for at least a year and have risen in value since their purchase, you avoid paying capital gains tax and you receive a charitable deduction on your federal income tax equal to the fair market value of the donated securities.
Consult your attorney or accountant to discuss your tax situation and the advantages of making a gift of securities to Carnegie Museums. The procedure for making a gift of stock varies depending on whether you are transferring securities electronically or contributing physically held shares.

Charitable Gift Annuity

In a Charitable Gift Annuity agreement, Carnegie Museums, in exchange for an irrevocable gift of at least $10,000, agrees to make payments for life to the donor or up to two beneficiaries designated by the donor. The payments usually begin immediately, but they may be deferred to a later date. The amount of the payments is based on the ages of the people to receive the payments (minimum age – 65) and the value of the cash or property given to Carnegie Museums. The payment amount is fixed in the charitable gift annuity agreement and does not change throughout the term of the annuity.

Cash or Publicly-traded Stock

Cash or publicly-traded stock may be used to fund a charitable gift annuity. If the income is to be paid to the donor, capital gains tax on the appreciation in value of any long-term capital asset given to Carnegie Museums in exchange for the annuity is spread out over the life expectancy of the donor, rather than being due immediately. A portion of each payment is tax-free, a portion is taxed as ordinary income, and, if a capital asset is used to fund the annuity, a portion is taxed at capital gains tax rates. The donor receives an income tax deduction for the amount by which the cash or property transferred to Carnegie Museums exceeds the value of the annuity.

Like most charities, Carnegie Museums uses the charitable gift annuity rates suggested by the American Council on Gift Annuities. To determine the annual payment for an annuitant of a given age, multiply the amount given to Carnegie Museums in exchange for the annuity by the rate opposite that age.

For examples of lifetime gifts and to find out if a charitable gift annuity is right for you, take this quiz to find out. Answer True or False.

  1. True or False?
    I would like to give a gift to Carnegie Museums of Pittsburgh that would not only help Carnegie Museums, but also provide me with regular, fixed payments for the rest of my life.

  2. True or False?
    I own stock that has appreciated in value, and would like to postpone the capital gains tax that would be due if I sold the stock now.

  3. True or False?
    I would like to receive payments that may be as much as or more than I currently receive in interest or dividends from my savings or stock.

  4. True or False?
    I would like a portion of the payments I receive to be tax-free.

  5. True or False?
    I would like to receive an income tax charitable deduction for my gift.

  6. True or False?
    I would like to reduce estate taxes by decreasing the size of my estate.

  7. True or False?
    It would be good to know that after I am gone another person will continue to receive fixed, regular payments.

If your answer to most or all of these questions was True, a charitable gift annuity from Carnegie Museums may fit your needs perfectly.

Charitable Remainder Trust

A Charitable Remainder Trust pays income for life or a period of years to the person who establishes the trust or other beneficiaries named by that person. The amount of the income payments may be fixed, based on a percentage of the initial amount used to fund the trust, or fluctuating, based on a percentage of the value of the trust at the beginning of each year. When the income payments end, the amount remaining in the trust is distributed to the charitable beneficiaries designated in the agreement creating the trust or the most recent amendment to that agreement.

The person establishing the trust receives an income tax deduction for the present value of the anticipated remainder. Whether the payments to the income beneficiaries are taxed as ordinary income or capital gains or are tax-free depends on the type of income earned by the trust.
Payments from a charitable remainder trust come from the trust itself. Unlike charitable gift annuity payments, which are fixed at the time of the annuity agreement, they may fluctuate with the performance of the investments in the trust. A fiduciary, such as a bank, acts as the trustee. Since administration of a charitable remainder trust is more complex than management of a charitable gift annuity, fiduciaries usually require higher minimum amounts before they will agree to serve as trustee.