Type of Gift Benefit to The Carnegie Benefit to Donor Comments Bequest The Carnegie receives an outright gift to the endowment upon the donor's death. -Opportunity to make a gift to The Carnegie that will continue in perpetuity -Estate tax charitable deduction -Easy to do Can be done through a new will or trust, or by a simple codicil or amendment Charitable Gift Annuity (through the Fine Arts Fund) The Carnegie receives the remaining principal of the original gift at the time of the donor's or annuitant's death. -A fixed, guaranteed lifetime income stream, a portion of which is tax-free -The older the donor, the greater the annuity rate -Immediate income tax deduction for a portion of the value of the gift -Very attractive for older donors -Minimum gift is $10,000* -Minimum donor age is 60* *Fine Arts Fund minimums Insurance Policy The Carnegie receives the full face value of the policy upon the death of the donor. -Income tax deduction for replacement value of the policy (for a fully paid up policy) -Premium payments may be deducted (for non-paid up policy) -Estate tax deduction -An easy gift for a donor who has a policy they no longer need -Can be a gift of the entire policy or a percentage -Can be a gift of a fully paid-up policy; a policy with premiums remaining to be paid; or simply a beneficiary designation on a policy the donor still owns (tax benefits to donor will vary) Charitable Remainder Trust At the end of the beneficiary's life or term of years, the trust ends, and the principal and any accumulated income is paid to The Carnegie (ie, the charity receives the "remainder"). -An income stream (can be either fixed or variable) for life or a term of years -Donor can convert low-income, appreciated securities without incurring capital gains tax -Donor receives a partial income tax deduction at the time of the gift -Only practical for gifts of 6 figures or more Charitable Lead Trust The Carnegie receives an income stream from the trust during the donor's lifetime or for a term of years. Afterwards, the assets of the trust revert back to the donor or donor's heirs (ie, the charity receives the initial or "lead" benefit). -At the end of the trust period, the principal (and any appreciation) returns to the donor or other beneficiaries -Principal and its growth can pass to others with little or no shrinkage from taxes -Only practical for gifts of 6 figures or more IRAs and similar retirement plans The Carnegie becomes the beneficiary of the assets (or a portion of the assets) remaining in the plan at the donor's death. -Estate tax and income tax (on accumulated income) are avoided -Under current law, generally only works well for gifts made at death, not during lifetime