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Gift Planning |
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Frequently Asked Questions 1. What are the kinds of gifts I can give to the Art Institute of Chicago? Generally speaking, during your lifetime you can make an outright gift of cash, securities, or other property (e.g., real estate, personal property). Upon your death you can make a gift through your will or revocable trust, or through a distribution from a retirement plan or life insurance policy. You also have the option of making a gift that returns lifetime payments to you, your spouse, or other individuals, such as a charitable gift annuity or charitable remainder trust. 2. What sort of assets can I use to make a gift? Almost anything: cash, publicly traded securities, the balance in your retirement account. Other assets can be very valuable but are more complicated to administer and must be reviewed by us before we can accept them as gifts: real estate, closely held stock, and artwork. 3. What tax deduction will I receive for my gift? The amount of the deduction depends on the form of the gift. Some gifts, such as cash and appreciated securities support a current income tax deduction. Other donations, such as a bequest, are exempt from estate taxes but do not produce an income tax deduction. Please consult your attorney, accountant or financial advisor on tax consequences of gifts you are considering. 4. Can the Art Institute of Chicago serve as the executor of my estate? No. State law, the limitations of our corporate powers, and our internal policies prevent us from taking such a role in your affairs. 5. I want to set up a life insurance policy, name the Art Institute of Chicago 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 would say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. The Art Institute of Chicago must be made the irrevocable owner of the policy for the offsetting premium payments to be deductible. 6. Can I transfer my IRA to the Art Institute of Chicago to set up a life-income gift and avoid income tax on the transfer? Donors younger than 70½ can make a withdrawal from their IRA or other type of retirement plan, pay income tax on the withdrawal, and donate the proceeds to us. These gifts can be made outright or can fund a life-income gift and will generate a charitable deduction for the donor. 7. I'd like to donate a painting. Will you determine its value for my income-tax deduction? No, we can't. The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair-market value. The appraisal has to be related to the gift and an insurance appraisal won't suffice. We can assist you on this point. 8. I'm interested in establishing a charitable gift annuity. What financial provisions do you make for the income payments to me and my husband? Your charitable gift annuity will be treated as a general obligation of the Art Institute of Chicago, backed by all its assets. The Art Institute of Chicago is in full compliance with Illinois provisions regarding non-profits' offering of gift annuities. 9. If I create a bequest or life-income gift, will the Art Institute of Chicago continue to ask me for annual contributions? We will because the commitments address two different needs. Your planned gift is a significant addition to our long-term financial strength—our ability to meet the challenges and opportunities the future will bring. The obligations and expenses that we encounter today, however, are met through your annual gift. We are very grateful that you want the Art Institute of Chicago to succeed both today and in the future. The Art Institute of Chicago Planned Giving content ©2008 VirtualGiving | Disclaimer & Privacy Notice |
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