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Friends of LACMA who would like to make a substantial gift while considering their own financial needs may find a life income plan advantageous. These types of plans can provide you (or your designate) with income for life and provide important support for LACMA.
Charitable Gift Annuity
A Charitable Gift Annuity is an excellent way to support LACMA while ensuring your own financial future or that of a loved one. In exchange for your irrevocable gift of cash or securities, the museum will provide you with a guaranteed annuity for life with a portion of the income tax-free. You will also receive an income tax charitable deduction in the year you establish the annuity. The rate of return is based on the age of the person(s) who receive the payments—the older the beneficiary, the higher the rate. Gift Annuities are easy to establish and can be created with as little as $5,000. Low-interest CDs or appreciated securities are wonderful assets to consider using when establishing an annuity.
LACMA follows rates recommended by the American Council on Gift Annuities. The table below shows current rates for a single beneficiary at various ages. Sample income payments, tax-free portions, and deduction amounts for a $10,000 gift are also shown.
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Single
Beneficiary Age
|
Rate of
Return
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Annual Income
|
Tax-Free Portion
|
Allowable
Charitable
Deduction
|
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65
70
75
80
85
90+
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5.3%
5.7%
6.3%
7.1%
8.1%
9.5%
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$530
$570
$630
$710
$810
$950
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$336
$383
$445
$524
$635
$771
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$3,312
$3,909
$4,488
$5,075
$5,684
$6,219
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| Calculations use AFR of 3.4 percent. Actual numbers may be slightly different, depending on discount rates at the time of the annuities creation. Rates for two-beneficiary annuities differ. Rates are subject to change. |
It is possible to defer annuity payments until a future date of your choosing, an attractive feature for younger donors. By postponing income payments—until retirement, for example—the annuity payout increases as does the income tax charitable deduction.
Selected Deferred Annuity Rates
Single Beneficiary
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Your
Current
Age
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Age When
Payments
Begin
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Current
Rate
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50
50
55
55
60
60
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65
70
65
70
65
70
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10.4%
14.2%
7.9%
10.4%
6.4%
8.5%
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A Charitable Gift Annuity is an ideal way to satisfy both philanthropic and financial needs. You can take advantage of the benefits of a LACMA Charitable Gift Annuity with a minimum gift of $5,000 (one beneficiary) or $10,000 (two beneficiaries). The minimum age requirement is 50. For more information, or to receive a free, no-obligation illustration on how a Charitable Gift Annuity can work for you, please contact Patrick Morrow in the Office of Gift Planning at 323 932-5816 or pmorrow@lacma.org.
Charitable Remainder Trusts
A Charitable Remainder Trust is a type of charitable trust that provides you and/or other beneficiaries with income for life or a specified period of time and thereafter distributes the remaining assets to LACMA. An immediate income tax charitable deduction is available for an amount equal to the present value of what the museum can be expected to receive when the trust ends.
Charitable Remainder Trusts give you the flexibility to design a trust to meet your individual goals: You can select the beneficiaries, the trustees, the distribution rate, and the type of trust. A Charitable Remainder Unitrust pays an annual distribution based on the value of the principal, revalued annually. With a Charitable Remainder Annuity Trust, annual distribution is fixed and is based upon the value of the principal at the time of the gift. Since each trust is individually tailored, there is more flexibility in the type of property that can be donated.
For additional information on planned giving, please contact Patrick Morrow in LACMA's Office of Gift Planning at 323.932.5816, or pmorrow@lacma.org. All inquiries are confidential and without obligation.
The purpose of this web page is to provide information of a general nature only. Advice from your own legal and tax counsel should be sought when considering any gift arrangement.
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Try our gift calculator and generate sample calculations tailored to your specific parameters.
For further information, contact Patrick Morrow, Office of Gift Planning, at 323 932-5816 or via email.
LACMA Federal Tax ID:
95-2264067
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