HOW TO PLAN YOUR GIFT
Madison Symphony Orchestra Inc.
222 W. Washington Ave. Suite 460
Madison, WI 53703
FEDERAL TAX ID
The Madison Symphony Orchestra is a 501(c)3 nonprofit organization.
PLANNING IS EVERYTHING
Although charitable giving is motivated by more than advantageous tax planning, your planned gift can offer special benefits to you in your lifetime and the flexibility to create a far more significant legacy than you may have thought possible. We recommend you consult with your attorney or tax advisor about the various tax benefits and restrictions that may apply to your specific situation. Casey Oelkers, Director of Development, is available to you and your advisors to answer specific questions about Madison Symphony Orchestra programs and purposes for which your gift may be designated. Call (608) 257-3734 or email firstname.lastname@example.org.
The federal estate tax can erode approximately 50% of one’s estate; that’s far more significant than the income tax. It pays to plan for the future with your attorney or other professional advisors. A charitable bequest to the Symphony will allow you to preserve your assets during your lifetime, save you estate tax dollars, and have an enduring impact on the MSO for future generations.
Sample bequest language:
I hereby give, devise and bequeath to the Madison Symphony Orchestra Inc., [the sum of $_____] OR [_____ percent (%) of the rest, residue and remainder of my estate] to be used to support the MSO’s endowment at the time the gift is received.
Note: Madison Symphony Orchestra’s policy is to transmit all bequests to its endowment, which is held by the Madison Symphony Orchestra Foundation Inc. If you wish to designate your gift for a specific endowment purpose, we advise you to contact Casey Oelkers at (608) 257-3734 or email@example.com to ensure your wish can be honored.
LIFE INCOME GIFTS
A life income gift allows you to transfer cash, stock or other property now while continuing to receive income from the asset. Life income gifts are often made through a trust arrangement called a unitrust or an annuity trust:
A life income gift can allow you to:
- With a unitrust, you and/or your spouse or other beneficiary annually receive a fixed percentage of the fair market value of the assets in the trust. The income received will vary from year to year, based on how the trust's investments perform.
- With an annuity trust, you and/or your spouse or other beneficiary annually receive a fixed amount from the trust. This amount is agreed on and it stays constant no matter what happens with the stock market or interest rates.
- Increase your income for life
- Receive a generous charitable contribution deduction
- Avoid any capital gains tax on the appreciation, if you contribute appreciated property
If you have already considered a provision for the MSO, please note that a life income gift can often be preferable. Such a gift allows you to accomplish your goals during your lifetime.
GIFTS OF STOCK
Gifts of long-term appreciated stock offer two-fold tax savings. First, you avoid paying any capital gains on the increase in value of your stock. In addition, you receive a tax deduction for the full fair market value of the stock on the date of the gift. For income tax purposes the value of such gifts may be deducted up to 30% of adjusted gross income, with an additional five-year carry forward.
GIFTS OF REAL ESTATE
If you have owned your own home, a vacation home, acreage or a farm for many years, a charitable gift of that real estate can be especially tax-advantageous.
The property may have so appreciated in value over the years that its sale would result in a sizeable capital gains tax. If given to the Madison Symphony Orchestra instead, you avoid the tax and, at the same time, realize a charitable deduction for the full fair market value of the property.
You may also wish to consider a gift of your personal residence or farm, reserving the right to continue to live in the house or farm the property for life (and, if applicable, the lifetime of your spouse). Through such an arrangement, you will be entitled to a current income tax deduction for a portion of the fair market value of the property.
GIFTS OF LIFE INSURANCE
If you own a life insurance policy that is no longer needed, consider it as the perfect vehicle for a charitable gift to the Madison Symphony Orchestra.
To receive a charitable deduction, name the MSO as both the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will be tax-deductible each year. To make this contribution, check with your life insurance agent for the correct forms to complete.