Leaving a Legacy

 
 

The Axline Society honors individuals of all ages who make gifts to the Museum of Contemporary Art San Diego (MCASD) that go beyond the ordinary and are at the heart of building both the collection and the institution. Named for visionaries Rea and Jackie Axline whose many contributions, including their transformative bequest, continue to influence the future of MCASD, the Axline Society celebrates forward-thinking philanthropists who have made planned gifts to the Museum.

Get creative and change the world. Planned giving is about finding ways to make a meaningful and lasting difference to organizations you love like MCASD and many of the available vehicles provide tax benefits and even income for life.  You can make a difference in your lifetime or plan a legacy that will inspire future generations. Explore the options below and contact us for additional information and personalized examples.

 

Thinking about leaving a bequest to MCASD?

 

Make a difference now with: 

IRA Charitable Rollover

If you are 70 ½ years old or older and have an Individual Retirement Account (IRA), you can take advantage of a simple way to benefit the Museum of Contemporary Art San Diego. Right now you can give up to $100,000 per year from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money.

The transfer of funds to MCASD from your IRA generates neither taxable income nor a tax deduction. If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement. This law no longer has an expiration date so you may take advantage of it annually, well into the future.

To make a gift to MCASD from your Individual Retirement Account you must contact the company who manages your IRA. They will have a process in place for you to request that an IRA charitable rollover gift be made from your account. Please contact MCASD if you need help or have questions.

Life Insurance

When you own a life insurance policy with accumulated cash value, you're essentially sitting on a cash reserve. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause. One option is simply to name the Museum of Contemporary Art San Diego as the primary beneficiary. (Naming MCASD as beneficiary while you retain ownership of the policy, however, does not qualify you for an income tax deduction.) Or, you can name us as the beneficiary and also assign the Museum ownership of the policy as a current charitable gift. Please contact. MCASD if you have questions or would like to make a gift of life insurance.

Tangible Personal Property (Gifts of Artwork)

Many items of tangible personal property make suitable charitable gifts. The available tax deduction depends on whether or not the organization that receives the property will use it in a way that is related to its tax-exempt purpose. Related use property (e.g. a piece of artwork that is donated to an art museum, other than for sale by the museum) is deductible at the full fair market value. The deduction for nonrelated use personal property is limited to the lesser of fair market value or the donor's tax basis in the property.

Before donating or bequeathing artwork to MCASD, please contact us so we may verify that the gift passes the related use test. This must be done on an item by item basis. In order to claim a tax deduction, you also will be required to obtain a qualified appraisal by a qualified appraiser.

Please note that laws passed by Congress in recent years have severely restricted the previously popular practice of gifting fractional interests of personal property. Fractional interest gifts are unlikely to be accepted any longer and if you have already made such a gift you may want to contact your tax advisor to make sure you are following the new rules. Please contact MCASD if you have questions or would like to make a gift of artwork or other tangible property.

Charitable Lead Trusts

Charitable Lead Trusts are a great way to give a stream of annual income to the Museum of Contemporary Art San Diego for a number of years and then pass the assets on to family members, with a lower tax burden than an outright gift to your family would generate.

A charitable lead trust is usually established with assets such as stock that you hope will appreciate in value over time. The trust then pays Museum of Contemporary Art San Diego an income for a number of years, which you select. The longer the length of time, the better the tax savings. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal cost.

If you think a Charitable Lead Trust might benefit you and your family, please contact MCASD. We would be happy to answer questions and run some personalized examples for you.

Plan for the future with:

Wills and Living Trusts

Making a bequest through a Will or Living Trust is simplest and most popular way to make a planned gift. All it takes is adding a codicil to your documents naming MCASD and specifying what the Museum is to receive. A bequest done in this way is considered revocable since it can be altered by you in the event that your life circumstances change.

Sample Codicil Language Download

Bequest Language - GENERAL

I give and bequeath to the Museum of Contemporary Art, San Diego (the "Museum"), a not-for-profit corporation located at 700 Prospect Street, La Jolla, California, [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

Bequest Language - GIFT OF ART*

I give and bequeath to the Museum of Contemporary Art, San Diego (the "Museum"), a not-for-profit corporation located at 700 Prospect Street, La Jolla, California, all of my rights, titles, and interests in and to the following works, including any copyright interests therein, if any:

  1. Artist; Title; Year; Medium; Dimensions.
  2. (List additional works as above.)

I direct that all expenses of insuring, storing, transporting, and otherwise caring for any property bequeathed in this (Paragraph #, Clause #) shall be paid by my Executor as an expense of administering my general estate until the actual delivery of each article of property to the Museum has been made.

* Before donating or bequeathing artwork to MCASD, please contact us so we may verify that the gift passes the related use test. This must be done on an item by item basis.

Types of Bequest Provisions

When deciding what to bequeath to the Museum, consider including one or more of the following types of bequest provisions:

  • Specific – List of items and/or a stated dollar value amount
  • Percent – Specified percentage of assets after debts are settled
  • Residual – After all beneficiaries are paid and all debts settled there may be a residual. This can be given in whole or in part to charity.
  • Contingent – If/then statements e.g. “If I my $25,000 pledge to the Museum is not completed then it will be paid in full from my estate before my assets are distributed to other beneficiaries.”

Please contact MCASD if you have questions or would like to make bequest through your Will or Living Trust.

Beneficiary Designations

Many assets you may already have in your portfolio may be bequeathed simply by making the Museum of Contemporary Art San Diego your beneficiary. To add MCASD as a beneficiary on one of the following, contact your retirement plan administrator, insurance company, bank or financial institution for a change-of-beneficiary form.

  • IRA, 401(K) and 403(B) retirement savings accounts*
  • Life Insurance Policy
  • Donor Advised Funds (DAR)
  • Commercial Annuities
  • Savings Bonds

* Please note that a retirement plan or IRA is typically the largest source of assets that generate taxable income when paid to a beneficiary. More than half of your retirement plan assets could be subject to income and estate taxes. Therefore, if you are considering a gift to MCASD after your lifetime, it is usually better to leave taxable assets to us and give nontaxable assets (such as stocks and real estate) to your loved ones. Please contact MCASD if you have questions or would like to make the Museum your beneficiary.

Charitable Remainder Trusts

If you are wanting to leave some assets to the MCASD but still want to receive a stream of income from these assets during your lifetime, then you may want to consider a Charitable Remainder Trust (CRT). When you donate assets to a CRT you create, you receive a stream of income from the trust, which can last for your lifetime or a set term of up to 20 years. The income amount may be greater than what the assets currently yield. If you wish, your spouse or another individual can receive an income from the trust after your lifetime. At the end of the trust term, the remaining balance goes to MCASD.

In addition to income for life, Charitable Remainder Trusts also are popular because they can provide current tax benefits. Please note, however, that some assets (e.g. the home you are living in) cannot be used to fund a CRT. To find out what kind of CRT might be beneficial for you and your family, please contact MCASD. We would be happy to answer questions and run some personalized examples for you.

Charitable Lead Trusts

Charitable Lead Trusts are a great way to give a stream of annual income to the Museum of Contemporary Art San Diego for a number of years and then pass the assets on to family members, with a lower tax burden than an outright gift to your family would generate.

A charitable lead trust is usually established with assets such as stock that you hope will appreciate in value over time. The trust then pays Museum of Contemporary Art San Diego an income for a number of years, which you select. The longer the length of time, the better the tax savings. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal cost.

If you think a Charitable Lead Trust might benefit you and your family, please contact MCASD. We would be happy to answer questions and run some personalized examples for you.