You can help us endow the future of the Fresno Metropolitan Museum through your planned gift today. There are multiple ways to support The Museum over and above annual membership and annual giving. Listed below are some techniques that you might consider when planning your legacy gift.

These techniques can provide our donors with significant personal tax and financial benefits while helping to build the future of the Museum. For more information and to schedule an appointment to discuss the potential impact of your planned gift to the Fresno Metropolitan Museum, please call the Museum at (559) 441-1444.

We strongly recommend you speak with your financial planner and/or legal advisor before initiating your planned giving program.

The following "case studies" present hypothetical situations and are offered for informational purposes only. Your specific situation and gift planning may not be reflected in these examples.

• Gifts of stock and other assets
• Bequests through a will or beneficiary designation
• Special charitable trusts
• Gifts of life insurance
• Life estates

Gifts of Stock and Other Assets

Ms. Peterson, a Sustaining Member of the Museum, recently attended the special exhibit American Impressionism: An Arcadian Vision, Paintings from The Akron Art Museum. She was so delighted that she told our development staff she wished to make a rather large gift to help make more of these types of exhibitions possible. Ms. Peterson mentioned that she had some stock that had grown substantially in value since she purchased it. She had been thinking about selling the shares and donating the proceeds for quite awhile. Ms. Peterson figured that the donation would offset the taxable gain from selling the highly appreciated shares.

The development staff at the Museum quickly advised her to consider donating the shares outright rather than selling them and donating cash. Ms. Peterson still gets a deduction for the donation, but she avoids adding the capital gains from selling the stock personally to her income for that year. The extra income is usually not totally offset by the donation depending on many personal factors for each donor. Ms. Peterson confirmed this advice with her tax and financial advisors and was very delighted with the additional tax savings from donating her stock. In fact, she's moved up to the Curator's Council level of annual membership as a sign of her appreciation.

Please call or email to set an appointment to discuss your situation and determine if gifting stock or other assets is appropriate for you.

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Bequests

The Taylors haven't updated their wills in several years. In working with their advisors to create new wills, they decided to include the Fresno Metropolitan Museum's Adopt-A-School program in their planning. They have enjoyed being members of the Museum for many years and want to do their part to ensure the future of the organization by helping to create new arts enthusiasts through the children's program. They learned that there are many ways to include nonprofit organizations in a will. After reviewing the various options, they settled on a specific gift of cash. The Taylors were able to specify a certain amount of money from their estate to be paid to the Museum. The satisfaction of knowing they will be contributing to the community after they are gone has been overwhelming. As a result, they have told many of their friends about the benefits and several of them are in the process of updating their estate plans as well.

Should you decide that you would like to make a bequest to the Fresno Metropolitan Museum, we ask that you use the following language:

I give and bequeath to the Fresno Metropolitan Museum, Inc., a not-for-profit corporation whose address is 1515 Van Ness Ave., Fresno, California 93721, the sum of $_________ [or______% of my residuary estate].

Special Purpose Bequest

Should you decide that you would like your bequest used to support a special program or activity at The Met, we ask that you use the following language:

I give and bequeath to the Fresno Metropolitan Museum., Inc., a not-for-profit corporation whose address is 1515 Van Ness Ave., Fresno, California 93721, the sum of $_________ [or______% of my residuary estate] to be used for ______________________[purpose]. If the Board of Trustees in its sole and absolute discretion determines that circumstances are such that a literal compliance with the terms of this bequest is impracticable or impossible, then the Fresno Metropolitan Museum, Inc. may use this bequest in its permanent endowment, giving consideration to my special interest in the purpose as stated above.

Please call or email to set an appointment to discuss your situation and determine if making a bequest is appropriate for you.

Beneficiary Designation

Many people don't realize that retirement accounts (401k, traditional IRA, etc.) are - in the event of the account holder's death - taxed as regular income to the beneficiary. Mr. Freeman was very upset to learn this because he had always believed that inherited money was tax-free. His advisors told him that life insurance proceeds, however, are indeed income tax-free to the recipient. Mr. Freeman doesn't need the money in his IRA and had intended to leave as much of it as possible to his daughter.

He mentioned his dilemma while speaking with the Development staff at the Fresno Metropolitan Museum about making a planned gift in support of the Reeves ASK! Science Center. The staff was able to offer a solution. They suggested that Mr. Freeman purchase a life insurance policy in the amount that he wants to pass to his daughter, and then name the Museum as the beneficiary of the IRA. His daughter will receive the insurance proceeds tax-free and as a nonprofit organization, the Museum receives the IRA tax-free. A true win-win scenario (except for the IRS, but Mr. Freeman was OK with that!).

Please call or email to set an appointment to discuss your situation and determine if making the museum a beneficiary on some of your assets is appropriate for you.

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Charitable Remainder Trusts

Mr. & Mrs. Carling are retired and own a piece of land they bought many years ago at very little cost. The land has gone up sharply in value over time. It doesn't provide any income, and they have to pay the tax bill on it every year. They have been considering donating it to the Fresno Metropolitan Museum, and they know they can take a tax deduction for doing so. However, they also need additional retirement income and have considered selling the property but are worried about capital gains tax.

After consulting their advisors, the Carlings learn they can have the best of both worlds by using a charitable remainder trust. The advisors explain that by setting up the trust and donating the land directly to the trust, they get a significant tax deduction, immediately reducing their current income tax burden. The trust then sells the land tax-free, avoiding the capital gains tax they would have paid if they sold it personally. The trust pays income to the Carlings every year for the rest of their lives. Upon their deaths, the remaining assets in the trust are paid to the museum. By moving the land to the trust, the Carlings also avoid any estate tax that may have been due on the value of the land.

The Carlings are delighted with this very powerful technique and get to accomplish their goals of increasing their income and donating to the future of their favorite nonprofit organization.

Please call or email to set an appointment to discuss your situation and determine if charitable remainder trust planning is appropriate for you.

Charitable Lead Trusts

Susan Bailey has been a strong supporter of the Fresno Metropolitan Museum for
many years and would like to increase her annual giving to help with the current expansion project. She is an executive at a company which is being bought out by a larger firm. Susan has received shares of her private employer's stock over the years as part of her compensation package. When the buyout is completed, she will receive a large amount of cash for her shares, most of which will be taxable to her this year. Her first thought was to make a large donation to the Museum from the sale proceeds which would address her desire to give and also provide a tax deduction to help offset some of her taxable gain. After consulting with her advisors however, Susan learns that she needs the sale proceeds for her long-term financial security and that she cannot afford to donate the funds outright.

Susan learns that she can establish a charitable lead trust instead that will accomplish all of her goals. The trust allows her to put money in for a certain amount of time, such as five years. The money is invested and the trust pays income every year to the Museum. When the term is over, all the money remaining in the trust is returned to Susan. The best part is that she gets a very large tax deduction immediately to help offset her tax bill this year. This technique allows Susan to save taxes and help the Museum right away, while keeping her principal for her own long-term needs.
Another version of this type of trust is often used to pass assets from one generation to the next without paying any gift tax.

Please call or email to set an appointment to discuss your situation and determine if charitable lead trust planning is appropriate for you.

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Gifts of Life Insurance

Dr. Turner is a Senior level member of the Fresno Metropolitan Museum. He recently called the Development staff at the Museum to inquire about making the Museum a beneficiary on a life insurance policy that had been in force for many years. Dr. Turner doesn't need the policy any longer and his family is well taken care of, so he wanted to add to the future of the Museum. The policy in question is "paid-up" (meaning he doesn't have to pay any more premiums).

Dr. Turner wanted to know the correct beneficiary language to use and also to find out what type of tax deduction he would receive for naming the Museum on the policy. He learned that naming the Museum as a beneficiary on the policy does not currently provide any tax deductions. Instead, the staff explained that he can donate the policy itself directly to the Museum and receive an immediate tax deduction. Donating the policy outright also allowed the Museum to properly recognize Dr. Turner's generosity right away.

Please note that in some cases, naming the Museum as the beneficiary may be the appropriate technique. There are many charitable uses of life insurance for both old and new policies and each situation is different.

Please call or email to set an appointment to discuss your situation and determine if charitable life insurance planning is appropriate for you.

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Life Estates

The Harmons own their home outright and have lived there for over thirty years. They intend to live in the home for the rest of their lives. They have been reviewing their estate plans recently and learned that real estate is one of the most difficult assets for heirs to handle. In fact, they watched their neighbor's home deteriorate substantially while their children argued over whether to keep it, rent it out, sell it, etc. The Harmons have two grown children who live out-of-state and are concerned about their children trying to deal with the real estate from afar.

The Harmons learn through their advisors that they can donate the house to the Fresno Metropolitan Museum now and continue to live in it, use it and enjoy it as always for the rest of their lives. They will receive a substantial tax deduction today, and the house is not included in their list of assets for estate tax calculations. It also saves their children the hassle and expense of managing/selling the real estate at a time of great emotional stress. Upon the Harmon's passing, the Museum can choose to sell the property or use it if it fits the needs of the Museum at that time.

Please call or email to set an appointment to discuss your situation and determine if a life estate agreement is appropriate for you.

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