Information on Planned Giving

Information on Planned Giving

Support the New Mexico Philharmonic Through Planned Giving:
Please consider providing support for your New Mexico Philharmonic through wills, retirement plans, estates, and life income plans.

Securities
Though gifts of cash are always welcome, there can be desirable tax advantages to giving securities. When you contribute securities that have increased in value, you can keep your cash for other uses and avoid the capital gains tax incurred when you sell appreciated assets. You also get a charitable tax deduction for the full market value of the asset, regardless of what you paid for it.

Real Estate
Gifts of real estate offer similar advantages. If you give property that you’ve owned for more than one year, you’re entitled to a charitable tax deduction equal to the full value of the property. You also avoid paying a capital gains tax on the appreciation.

Bequests
Securities, real estate and other properties can also be donated by will, or bequest. You can also will life insurance or IRAs to the New Mexico Philharmonic and reduce your family’s estate-tax burden after you’re gone.

A Few Words About Estate Taxes
One of the most overlooked areas of planning is the federal estate tax. Everything you own may be subject to this tax. To cut down on your estate tax liability, consider the charitable deduction, which allows you to deduct every dollar you give to charity through an outright bequest. In addition, property placed in a charitable trust generally will not be subject to the federal estate tax when the beneficiary dies.

Gifts That Provide Income To You

Charitable Remainder Trust
By transferring highly appreciated, low-yield property into a Charitable Remainder Trust you can bypass capital gains taxes, increase your income, and enjoy a charitable income tax deduction that could significantly reduce your current income taxes. After your lifetime, or a term of years, the principal remaining is your gift to the New Mexico Philharmonic.

For example, you might transfer into a trust stock that originally cost $25,000, but now has a fair market value of $100,000 and a current yield of 3%. If you select a 7% payout rate, you will increase the annual income from your investment from $3,000 to $7,000. You will also bypass the $75,000 gain and receive a substantial income tax deduction.

It is important to note that a trust pays a variable income based on a percentage of the fair market value of the trust assets, as revalued annually. You choose the payout rate based on your own needs. A low rate allow the trust assets to grow more rapidly, providing you with the opportunity to increase your future income.

Charitable Remainder Annuity Trust
A annuity trust pays a fixed income based on the percentage you choose, and the value of the assets when the trust is established.

For example, if you establish a 7% two-life annuity trust with assets of $100,000, you and your spouse would receive $7,000 each year for the rest of your lives.

Charitable Gift Annuity
Like the charitable remainder annuity, a charitable gift annuity pays you a fixed dollar amount for life, or for a term of years. The amount is determined at the time of the contribution and is based on your age and, if you have designated another beneficiary, on his/her age as well. For senior citizens, annuity rates may be 8% or 9%, or even higher. Part of the annuity payment is tax-free, and the initial charitable deduction offers substantial income tax savings.

Deferred Gift Annuity
With a deferred gift annuity, you can defer the receipt of income until a later date, such as retirement. This offers several benefits: your annual income will be higher when the payments begin, and the contribution secures a larger current income tax charitable deduction.

Planned Giving/Support (pdf)