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Heritage Society Members | Types of Planned Gifts | Become a Member of the Heritage Society
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Types of Planned Gifts
Appreciated Securities
Securities with low-cost basis are tax efficient assets to the BPO.
Advantages
- A charitable income-tax deduction is allowed for the full market value of the securities when they are given.
- Since there is no sale, no capital gains tax is due on the increase over your cost. Many of our donors use securities to make larger gifts because of this tax saving.
How do I make a gift of stock?
- Transfer securities directly to the BPO's broker.
- Mail or deliver a stock certificate to the BPO with a stock power.
PLEASE NOTE: Please contact the BPO's Director of Development who will arrange all paperwork or provide you and your advisors with instructions.
Retirement Plans or Accounts
Gifts from retirement plans are probably the most tax-efficient of all charitable gifts. If you have a taxable estate, retirement plans are subject to both estate tax and income tax (adding up to almost eighty-percent) when received by an individual beneficiary other than your spouse.
Advantages
- Tax efficiency. For example, a $100,000 gift at death from a 401(k) plan or IRA (other than a Roth IRA) would only cost your children approximately $20,000.
- Retirement assets can be used to fund other charitable vehicles such as Charitable Remainder Trusts or Donor Advised Funds, with results preferable to "stretching" the retirement plan for longer periods.
Gifts can be made from retirement plans either at death or during your lifetime.
- Gifts at death are made under the retirement plan's beneficiary designation form, not under your will. New rules allow charitable beneficiaries to be named without affecting the required minimum distributions. Simply request the plan's beneficiary designation form and specify The Buffalo Fine Arts Academy as the beneficiary of a dollar amount, a percentage, or the entire account.
- Gifts can be made during your lifetime if you are at least sevety-and-one-half-years old and have an IRA. Direct payments to public charities such as the Gallery are not included in your income, and may satisfy your minimum distribution requirements. Several special rules apply, so please contact your IRA custodian.
- You can specify a particular purpose in your beneficiary designation form or in a letter of intent; for example, art education. Either can be addressed to the BPO's Director of Development.
Charitable Remainder Trusts
A Charitable Remainder Trust benefits you and the BPO. It provides you with an immediate income tax deduction for part of the gift's value. It provides a guaranteed income stream to the beneficiary of your choice, including yourself. It also provides the BPO with a gift that will help to secure its future. Gifts of highly appreciated stock are a great gift for a Charitable Remainder Trust.
Advantages
A Charitable Remainder Trust can:
- provide you with an income-tax deduction in the year of the gift, and (depending on the size of the gift and your income), you may be able to carry over any unused deduction for up to five years
- provide someone you choose (including yourself) with a guaranteed income stream
- provide a way to diversify appreciated assets without reducing their value by capital gains tax
- provide funding for a supplemental needs trust for the benefit of a disabled person
- provide important support for the BPO
- provide you with a way to reduce or eliminate estate tax while helping to support the arts
- provide you with a way to make additional gifts in the future and derive the same benefits
- provide superior investment management
Charitable Lead Trusts
The Buffalo Philharmonic Orchestra Charitable Lead Trusts benefits you and the BPO. It provides the BPO with a guaranteed income stream for a period of time. When the trust ends, the trust assets are distributed according to your wishes. It provides you with an effective and charitable way to reduce gift and estate taxes.
Advantages
A Charitable Lead Trust can:
- provide a guaranteed income stream to the BPO
- provide a benefit to someone you choose when the trust ends
- provide you with a way to reduce or eliminate gift and estate tax while helping to support the arts
- provide superior investment management
Charitable Gift Annuity
A Charitable Gift Annuity helps The Buffalo Philharmonic Orchestra build a robust endowment that will provide the income necessary keep the Orchestra playing for generations to come. Such gifts can provide you with current income for life and will ultimately strengthen the BPO's endowment.
Advantages
- Fulfill your desire to ensure that the BPO remains vibrant for future generations.
- Enjoy guaranteed, no-hassle, fixed payments for life.
- Claim an immediate charitable income-tax deduction
How does a gift annuity work?
1. Make a gift of cash or securities. This fund is managed by the Community Foundation for Greater Buffalo for the benefit of The Buffalo Philharmonic Orchestra.
2. The Community Foundation for Greater Buffalo pays you, or anyone you choose, fixed payments every quarter for life.
With your passing, the remainder goes to an endowment for the permanent support of the Gallery.
For more information, or to inform the BPO of your gift, contact Margaret Phillips, Director of Development, at (716) 885-0331, ext. 410.
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