Planned Giving

Most of us, if given the chance, would like to leave a lasting legacy to show that we have contributed to a cause that will benefit the lives of others for generations to come.  Making a planned gift is a way for you to create a legacy that lives beyond your lifetime, while impacting our four state museums in Santa Fe, seven historic sites statewide and the Office of Archaeological Studies in powerful and rewarding ways.

A planned gift brings your thoughtful planning, vision and extraordinary generosity together in the form of a bequest, beneficiary designation or a gift of art to a favorite cultural institution or the Foundation. As the following stories of visionary donors illustrate, planned giving not only supports the cultural institutions that inspire individual donors, it enriches the lives of countless art, history and culture lovers from New Mexico and beyond.

Bequest

Charitable Gift Annuities (CGA’s)

Charitable Trusts (CRT’s)

Gifts of Stock

IRA Charitable Rollover

Insurance

Real Estate

The most popular and easiest way to make a planned gift. A bequest allows you to remain in control of your assets during your lifetime, it costs nothing and can reduce estate tax burdens. Bequests can be a specified dollar amount, a percentage of an estate, or tangible property.

A Charitable Gift Annuity is a contract between the Foundation and a donor that provides a guaranteed lifetime income for a donor and one beneficiary in return for an irrevocable gift to the Foundation.  The amount received is based upon an annuity rate that corresponds with the recipient’s age at the time of the gift. It can be funded with cash or publicly traded securities having a minimum value of $10,000. It is a planned gift that increases your income and allows you to receive immediate tax benefits.

There are two main types of charitable remainder trusts:

  • Charitable remainder annuity trusts (CRATs) are designed to pay the beneficiary(ies) a fixed dollar amount (annuity) for a term not to exceed 20 years, or a combination of life and term of years. The fixed dollar payout cannot be less than 5% of the initial fair market value of the trust’s assets. The fixed amount does not change regardless of any change in the value of the underlying asset.
  • Charitable remainder unitrusts (CRUTs) are designed to pay the beneficiary(ies) a fixed percentage of trust assets, which is based on the trust’s fair market value, calculated annually. This fixed percentage cannot be less than 5%. Thus, a unitrust pays a variable amount to the income beneficiaries (due to annual fluctuation in the values of trust assets), rather than a certain sum that is paid by an annuity trust.

Gifts of appreciated securities are a smart and simple way to maximize the effectiveness of your charitable giving. If stocks or mutual funds* you’ve held for more than a year have increased in value, you may want to consider using these assets, rather than cash, for your charitable contribution. By transferring ownership of your long-term stock you can avoid the capital gains tax you would pay if the stock were sold, and you may claim a charitable income tax deduction for the current fair market value of the asset.

A charitable rollover is a simple way to make a gift. Here are the nuts and bolts:

  • You must be an IRA owner over age 70½ to be eligible
  • You notify your IRA custodian to make a direct transfer of the required distribution amount from the IRA to the museum, division or the Foundation
  • The distribution counts toward your required minimum distribution, and you pay no tax on the distribution

An easy way to leave a meaningful gift is to designate a museum, division or the Foundation as the beneficiary of a retirement or life insurance plan. The charitable deduction is the fair market value of the fully paid insurance policy. This is defined as the amount that the issuer of the policy would charge for a similar policy of the same specified amount on the life of a person who is the same age of the insured at the time of the contribution.

The Retained Life Estate Agreement (RLEA) is unlike any of the other planned gifts for several reasons.

  • The item contributed to an RLEA must be a donor’s home, vacation home, or a farm with a residence, if qualification for exemption from federal transfer taxes is desired.
  • The donor irrevocably relinquishes ownership of the home in exchange for the right to enjoy use of the property as long as desired (life or a term of years). For this exchange, the donor may receive an income tax deduction.  Under the RLEA, the donor is responsible for maintenance, taxes, and insurance on the property for life, unless there is an agreement stating otherwise approved by the President and CEO and Executive Committee.