The Charlotte Museum of History

Frequently Asked Questions

What assets can I use to make a gift to the Charlotte Museum of History?

Generally speaking, during your lifetime you can make an outright gift of cash, securities, or other property (e.g. real estate, personal property). Through your will, or with a distribution from a retirement plan or life insurance policy, your gift can be designated to the Charlotte Museum of History in accordance with your wishes.

What sort of gift plans also return income to me?

You have the option of making a gift that returns income to you, your spouse, or other individuals, such as a charitable gift annuity or charitable remainder unitrust.

What tax deduction will I receive for my gift?

Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, there are some guidelines:

Outright gifts to generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains -- a great tax benefit!
Gifts of personal property, like art, antiques, books, and collectibles are fully deductible so long as they are relevant to our mission. We can advise you on this point. Click here for contact information.
Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax.
Similarly, life insurance distributions to the Charlotte Museum of History are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments.

The charitable deduction for a gift that returns income to you, such as charitable gift annuity or a charitable remainder

trust, is the fair market value of the gift asset minus the present value of the income interest you retain.

I want to set up a life insurance policy, name the Charlotte Museum of History as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a "completed gift." They'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

What are the ways in which a donor can designate their gift to the Charlotte Museum of History through their will?

A donor can bequeath a certain sum or a percentage of their estate for either specific or general purposes.

Can the Charlotte Museum of History serve as Executor for an estate?

The Charlotte Museum of History cannot serve as Executor for any estate due to potential liablilty and conflict of interest issues.

I've heard that transferring gifts of IRA assets to charity are advantageous. Why?

Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and state taxes at a combined rate that could rise to 75% or even higher on large taxable estates. The tax will be paid at some point by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support the Charlotte Museum of History!

I'd like to donate a historic object to the collections of the Charlotte Museum of History. Will you determine its value for my income tax deduction?

The IRS requires that donors of artwork, antiques, and collectibles secure an independent appraisal of the items to establish fair market value. The apppraisal has to be related to the gift, too. An insurance apppraisal won't suffice. Please contact the museum staff for additional information.

If I create a bequest or life-income gift, will you continue to ask me for annual contributions?

Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through annual gifts, and we greatly appreciate and encourage any annual support you may want to consider.

What is the federal tax identification number for the Charlotte Museum of History?

The federal tax identification number is 23-7-125613.

How can I notify the Charlotte Museum of History about an estate gift?

Attention: Sheryl Hayes

Charlotte Museum of History

3500 Shamrock Drive

Charlotte, NC 28215-3214

704-568-1774 x106

shayes@charlottemuseum.org

Who can answer the bequest and legacy questions of an executor/trustee?

Please direct inquiries to Sheryl Hayes at 704-568-1774, x 106,

(shayes@charlottemuseum.org)

Please note that this information is not intended as legal, tax, or investment advice. When considering a planned gift, always consult your attorney, financial advisor, and tax accountant.


	Frequently Asked Questions What assets can I use to make a gift to the Charlotte Museum of History? Generally speaking, during your lifetime you can make an outright gift of cash, securities, or other property (e.g. real estate, personal property). Through your will, or with a distribution from a retirement plan or life insurance policy, your gift can be designated to the Charlotte Museum of History in accordance with your wishes. What sort of gift plans also return income to me? You have the option of making a gift that returns income to you, your spouse, or other individuals, such as a charitable gift annuity or charitable remainder unitrust. What tax deduction will I receive for my gift? Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, there are some guidelines: Outright gifts to generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains -- a great tax benefit! Gifts of personal property, like art, antiques, books, and collectibles are fully deductible so long as they are relevant to our mission. We can advise you on this point. Click here for contact information. Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax. Similarly, life insurance distributions to the Charlotte Museum of History are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments. The charitable deduction for a gift that returns income to you, such as charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain. I want to set up a life insurance policy, name the Charlotte Museum of History as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make? No. The IRS would not consider that a "completed gift." They'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible. What are the ways in which a donor can designate their gift to the Charlotte Museum of History through their will? A donor can bequeath a certain sum or a percentage of their estate for either specific or general purposes. Can the Charlotte Museum of History serve as Executor for an estate? The Charlotte Museum of History cannot serve as Executor for any estate due to potential liablilty and conflict of interest issues. I've heard that transferring gifts of IRA assets to charity are advantageous. Why? Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and state taxes at a combined rate that could rise to 75% or even higher on large taxable estates. The tax will be paid at some point by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support the Charlotte Museum of History! I'd like to donate a historic object to the collections of the Charlotte Museum of History. Will you determine its value for my income tax deduction? The IRS requires that donors of artwork, antiques, and collectibles secure an independent appraisal of the items to establish fair market value. The apppraisal has to be related to the gift, too. An insurance apppraisal won't suffice. Please contact the museum staff for additional information. If I create a bequest or life-income gift, will you continue to ask me for annual contributions? Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through annual gifts, and we greatly appreciate and encourage any annual support you may want to consider. What is the federal tax identification number for the Charlotte Museum of History? The federal tax identification number is 23-7-125613. How can I notify the Charlotte Museum of History about an estate gift? Attention: Sheryl Hayes Charlotte Museum of History 3500 Shamrock Drive Charlotte, NC 28215-3214 704-568-1774 x106 shayes@charlottemuseum.org Who can answer the bequest and legacy questions of an executor/trustee? Please direct inquiries to Sheryl Hayes at 704-568-1774, x 106, (shayes@charlottemuseum.org) Please note that this information is not intended as legal, tax, or investment advice. When considering a planned gift, always consult your attorney, financial advisor, and tax accountant.