Planned Gifts
By making a planned donation, you are providing for the future of the Clay Center. Planned gifts can take many forms, including bequests of small and large estates, a life income gift - which includes charitable gift annuities, deferred gift annuities, and charitable remainder trusts - gifts of life insurance, real estate, personal property, and appreciated securities.
Besides insuring a bright future for the Clay Center, a properly planned gift may:
• Provide an income for life, reduce or eliminate capital gains
• Generate a charitable tax deduction, or reduce or eliminate gift and estate taxes
• Provide a much larger gift to the Clay Center than was ever thought possible
We welcome feedback, and are pleased to assist in any way needed to make your contribution meaningful and an enjoyable experience.
Charitable Statistics: An Untapped Well of Good
• There are more than 260 million Americans, of whom approximately two million die each year.
• In 1996, 79,346 estate tax forms were filed with the federal government. (At the time, these forms were required for estates in excess of $600,000.) Eighteen percent of the forms listed a charitable gift.
• In other words, 82 percent of the nation’s wealthiest individuals left nothing to charity.
• In addition, the IRS tells us that charity is getting a decreasing share of the money in these wealthy estates, from 21.8 percent in 1976 to 6.3 percent in 1992.
• According to a 2004 Associated Press news story, only 42 percent of adults have wills, a five percent drop since 2000.
Leave A Legacy®
The Clay Center is a member of the national Leave A Legacy® program which is designed to inspire people from all walks of life and all income levels to think beyond their lifespan when doing good works.
Legacy Society
All of the gift plans listed below allow for the donor(s) to become a member of the Legacy Society, which will soon be established by the Clay Center Board of Directors to provide recognition of individuals who have made arrangements for the Center through their estate plans.
How to Make a Planned Gift
Charitable Bequests
A charitable bequest is simply a distribution from your estate to a charitable organization through your last will and testament. There are different kinds of bequests. For each, you must use very specific language to indicate the precise direction of your assets, and to successfully carry out your final wishes. In any charitable bequest, be sure to name the recipient accurately.
Many Clay Center friends have provided for the future of the Center by way of a testamentary gift. The donation of estates, large and small, will play an important role in the continued development of our endowment. If you are considering making a bequest to the Clay Center, you may choose to make an unrestricted (general) gift or a restricted gift that specifies how resources are to be used.
Do you have an estate?
Your “estate” is the sum of your assets, including property you own, insurance policies, retirement accounts, cash on hand, etc. Wealthy people may have very large estates, but even people who aren’t wealthy often have the resources to make a charitable bequest. If every adult in America made a will and included a bequest of just $100, billions of dollars would flow to charitable causes every year.
I have children and relatives. Shouldn’t I leave my entire estate to them? This is perhaps the number one cause for reluctance when making a bequest. The truth is that, depending on the current tax laws, leaving a gift to charity in your will may reduce the estate tax burden on your heirs significantly. You should consult with a financial advisor or attorney to learn how giving may actually benefit your family after you’re gone.
Without a will, there is no mechanism in place to make a bequest, so here are the steps you should take to make sure your wishes are granted.
Make a list of organizations or causes that you would like to support and place the Clay Center on your list.
Make a detailed list of your assets (financial, real estate, vehicles, jewelry, collectibles, musical instruments, etc.)
Set up an appointment with your financial analyst or attorney, or planned giving officer at the organization you intend to support. These professionals will help sensitively guide you through the process.
Below, we have listed some of the more common kinds of bequests, and some bequest language. We always recommend that you carefully review the terms of your will with a professional trained in handling trusts and estates.
General Bequests are legacies left to certain people or causes that come from the general value of the estate, and are made by designating a specific dollar amount, a particular asset or a fixed percentage of your estate to the cause of your choice.
General bequest language:
“I give, devise, and bequeath to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, the sum of $________(or a description of the specific asset), for the benefit of the Clay Center and its general purposes.”
Specific Bequests are made when a particular item or property is bequeathed for a designated purpose. (e.g., art work bequeathed to the Clay Center art museum for use in our galleries; dollar funds to be used in the operation of one of our educational programs.)
Specific bequest language:
“I give, devise, and bequeath to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, the sum of $_______ (or a description of a specific asset), for the benefit of the Clay Center to be used for the following purpose: (state the purpose). If at any time in the judgment of the Board of Directors of the Clay Center it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative purpose closest to the designated purpose.”
Residuary Bequests are made when you intend to leave the residue portion of your assets after other terms of the will have been satisfied.
Residuary bequest language:
“All the rest, residue, and remainder of my estate, both real and personal, I give to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, for its general purposes.”
Contingency Bequests allow you to leave a portion of your estate to the Clay Center if your named beneficiary does not survive you.
Contingency bequest language:
“I devise and bequeath the residue of the property, real and personal and wherever situated, owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of beneficiary) does not survive me, I devise and bequeath my residuary estate to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, for its general purposes.”
Life Income Gifts
A growing number of friends are taking advantage of special gift arrangements that meet their financial planning objectives while furthering the aims and purposes of the Center. The following information is provided in the hope that others who believe in the Clay Center mission will find that one of these gift arrangements provides an opportunity that is beneficial to both the Center and the financial planning goals of the benefactor.
Charitable Gift Annuity
The low interest rates being paid on certificates of deposit have prompted several individuals to consider establishing charitable gift annuities rather than renew their CDs. Gift annuities not only provide higher rates of return, they also generate a substantial income tax deduction in the year they are established, and a portion of each year’s annuity income is tax-free. Furthermore, the rate of return is guaranteed for life.
Using appreciated securities that have been held long term is an attractive way to fund a gift annuity. In such instances, because the stock is given irrevocably to the Clay Center, no capital gains tax results from its sale. Both the amount to be paid to the donor(s) annually (the annuity) and the income tax charitable gift deduction are based on the full market value of the stock on the date of the gift (not its original price).
If you and your spouse (if applicable) are each at least 60 years of age and have cash or securities valued at $10,000 or more, which might be used for a life income gift, the Clay Center would be happy to provide you with information regarding the annual annuity rate you may receive and the amount of income tax deduction that would be generated by the gift. The accompanying table lists sample rates for a single annuitant (one-life plan) at various ages. The rates are recommended by the American Council on Gift Annuities.
Deferred Gift Annuity
For younger donors (ages 45-60) who do not need the income now, the deferred gift annuity may be an attractive option for retirement and estate planning. With this plan, the donor(s) contribute money today for an annuity that begins at a fixed time in the future. Because of the income deferral period, payout rates are generally higher than for immediate charitable gift annuities
Charitable Remainder Trusts
A gift of substantial size ($250,000 or more is the rule of thumb) merits separate management as a charitable remainder unitrust or charitable remainder annuity trust. The major difference between the two is that an annuity trust pays a fixed dollar amount annually, whereas a unitrust’s payments are based on a fixed percentage (must be at least 5%) of the value of the trust’s assets as determined annually. Additional contributions may also be made at later dates to a charitable remainder unitrust; however, the law does not allow for subsequent additions to a charitable remainder annuity trust.
Other Planned Gift Opportunities
While life income gifts do not meet every donor’s situation, there are other opportunities through which planned gifts may be made.
Charitable Lead Trust
The charitable lead trust is an interesting twist on the concept of a gift of income. Instead of giving away assets while retaining life income, this planned gift arrangement allows the donor to give the income from specified assets to the Center over a period of years. This option can be particularly attractive for the donor who has assets, the income from which he or she no longer needs, but which he or she would like to pass on to children or grandchildren.
Retained Life Estate
Donors may retain occupancy for life of a primary residence, vacation home, or farm while also giving it irrevocably to the Center. With this type of gift, the donor(s) have the benefit of continuing to use their residence during their lives. The property passes to the Center at the death of the last beneficiary.
By making a planned donation, you are providing for the future of the Clay Center. Planned gifts can take many forms, including bequests of small and large estates, a life income gift - which includes charitable gift annuities, deferred gift annuities, and charitable remainder trusts - gifts of life insurance, real estate, personal property, and appreciated securities.
Besides insuring a bright future for the Clay Center, a properly planned gift may:
• Provide an income for life, reduce or eliminate capital gains
• Generate a charitable tax deduction, or reduce or eliminate gift and estate taxes
• Provide a much larger gift to the Clay Center than was ever thought possible
We welcome feedback, and are pleased to assist in any way needed to make your contribution meaningful and an enjoyable experience.
Charitable Statistics: An Untapped Well of Good
• There are more than 260 million Americans, of whom approximately two million die each year.
• In 1996, 79,346 estate tax forms were filed with the federal government. (At the time, these forms were required for estates in excess of $600,000.) Eighteen percent of the forms listed a charitable gift.
• In other words, 82 percent of the nation’s wealthiest individuals left nothing to charity.
• In addition, the IRS tells us that charity is getting a decreasing share of the money in these wealthy estates, from 21.8 percent in 1976 to 6.3 percent in 1992.
• According to a 2004 Associated Press news story, only 42 percent of adults have wills, a five percent drop since 2000.
Leave A Legacy®
The Clay Center is a member of the national Leave A Legacy® program which is designed to inspire people from all walks of life and all income levels to think beyond their lifespan when doing good works.
Legacy Society
All of the gift plans listed below allow for the donor(s) to become a member of the Legacy Society, which will soon be established by the Clay Center Board of Directors to provide recognition of individuals who have made arrangements for the Center through their estate plans.
How to Make a Planned Gift
Charitable Bequests
A charitable bequest is simply a distribution from your estate to a charitable organization through your last will and testament. There are different kinds of bequests. For each, you must use very specific language to indicate the precise direction of your assets, and to successfully carry out your final wishes. In any charitable bequest, be sure to name the recipient accurately.
Many Clay Center friends have provided for the future of the Center by way of a testamentary gift. The donation of estates, large and small, will play an important role in the continued development of our endowment. If you are considering making a bequest to the Clay Center, you may choose to make an unrestricted (general) gift or a restricted gift that specifies how resources are to be used.
Do you have an estate?
Your “estate” is the sum of your assets, including property you own, insurance policies, retirement accounts, cash on hand, etc. Wealthy people may have very large estates, but even people who aren’t wealthy often have the resources to make a charitable bequest. If every adult in America made a will and included a bequest of just $100, billions of dollars would flow to charitable causes every year.
I have children and relatives. Shouldn’t I leave my entire estate to them? This is perhaps the number one cause for reluctance when making a bequest. The truth is that, depending on the current tax laws, leaving a gift to charity in your will may reduce the estate tax burden on your heirs significantly. You should consult with a financial advisor or attorney to learn how giving may actually benefit your family after you’re gone.
Without a will, there is no mechanism in place to make a bequest, so here are the steps you should take to make sure your wishes are granted.
Make a list of organizations or causes that you would like to support and place the Clay Center on your list.
Make a detailed list of your assets (financial, real estate, vehicles, jewelry, collectibles, musical instruments, etc.)
Set up an appointment with your financial analyst or attorney, or planned giving officer at the organization you intend to support. These professionals will help sensitively guide you through the process.
Below, we have listed some of the more common kinds of bequests, and some bequest language. We always recommend that you carefully review the terms of your will with a professional trained in handling trusts and estates.
General Bequests are legacies left to certain people or causes that come from the general value of the estate, and are made by designating a specific dollar amount, a particular asset or a fixed percentage of your estate to the cause of your choice.
General bequest language:
“I give, devise, and bequeath to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, the sum of $________(or a description of the specific asset), for the benefit of the Clay Center and its general purposes.”
Specific Bequests are made when a particular item or property is bequeathed for a designated purpose. (e.g., art work bequeathed to the Clay Center art museum for use in our galleries; dollar funds to be used in the operation of one of our educational programs.)
Specific bequest language:
“I give, devise, and bequeath to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, the sum of $_______ (or a description of a specific asset), for the benefit of the Clay Center to be used for the following purpose: (state the purpose). If at any time in the judgment of the Board of Directors of the Clay Center it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative purpose closest to the designated purpose.”
Residuary Bequests are made when you intend to leave the residue portion of your assets after other terms of the will have been satisfied.
Residuary bequest language:
“All the rest, residue, and remainder of my estate, both real and personal, I give to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, for its general purposes.”
Contingency Bequests allow you to leave a portion of your estate to the Clay Center if your named beneficiary does not survive you.
Contingency bequest language:
“I devise and bequeath the residue of the property, real and personal and wherever situated, owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of beneficiary) does not survive me, I devise and bequeath my residuary estate to the Clay Center for the Arts and Sciences of West Virginia, Inc., a West Virginia non-profit arts and cultural organization located in Charleston, West Virginia, for its general purposes.”
Life Income Gifts
A growing number of friends are taking advantage of special gift arrangements that meet their financial planning objectives while furthering the aims and purposes of the Center. The following information is provided in the hope that others who believe in the Clay Center mission will find that one of these gift arrangements provides an opportunity that is beneficial to both the Center and the financial planning goals of the benefactor.
Charitable Gift Annuity
The low interest rates being paid on certificates of deposit have prompted several individuals to consider establishing charitable gift annuities rather than renew their CDs. Gift annuities not only provide higher rates of return, they also generate a substantial income tax deduction in the year they are established, and a portion of each year’s annuity income is tax-free. Furthermore, the rate of return is guaranteed for life.
Using appreciated securities that have been held long term is an attractive way to fund a gift annuity. In such instances, because the stock is given irrevocably to the Clay Center, no capital gains tax results from its sale. Both the amount to be paid to the donor(s) annually (the annuity) and the income tax charitable gift deduction are based on the full market value of the stock on the date of the gift (not its original price).
If you and your spouse (if applicable) are each at least 60 years of age and have cash or securities valued at $10,000 or more, which might be used for a life income gift, the Clay Center would be happy to provide you with information regarding the annual annuity rate you may receive and the amount of income tax deduction that would be generated by the gift. The accompanying table lists sample rates for a single annuitant (one-life plan) at various ages. The rates are recommended by the American Council on Gift Annuities.
Age |
Rate |
Age |
Rate |
Age |
Rate | ||
55 |
5.5% |
70 |
6.5% |
80 |
8.0% | ||
56 |
5.6% |
71 |
6.6% |
81 |
8.3% | ||
57 |
5.6% |
72 |
6.7% |
82 |
8.5% | ||
58 |
5.7% |
73 |
6.8% |
83 |
8.8% | ||
59 |
5.7% |
74 |
6.9% |
84 |
9.2% | ||
60 |
5.7% |
75 |
7.1% |
85 |
9.5% | ||
62 |
5.9% |
76 |
7.2% |
87 |
10.2% | ||
65 |
6.0% |
77 |
7.4% |
88 |
10.6% | ||
66 |
6.1% |
78 |
7.6% |
89 |
11.0% | ||
67 |
6.2% |
79 |
7.8% |
90+ |
11.3% |
Deferred Gift Annuity
For younger donors (ages 45-60) who do not need the income now, the deferred gift annuity may be an attractive option for retirement and estate planning. With this plan, the donor(s) contribute money today for an annuity that begins at a fixed time in the future. Because of the income deferral period, payout rates are generally higher than for immediate charitable gift annuities
Charitable Remainder Trusts
A gift of substantial size ($250,000 or more is the rule of thumb) merits separate management as a charitable remainder unitrust or charitable remainder annuity trust. The major difference between the two is that an annuity trust pays a fixed dollar amount annually, whereas a unitrust’s payments are based on a fixed percentage (must be at least 5%) of the value of the trust’s assets as determined annually. Additional contributions may also be made at later dates to a charitable remainder unitrust; however, the law does not allow for subsequent additions to a charitable remainder annuity trust.
Other Planned Gift Opportunities
While life income gifts do not meet every donor’s situation, there are other opportunities through which planned gifts may be made.
Charitable Lead Trust
The charitable lead trust is an interesting twist on the concept of a gift of income. Instead of giving away assets while retaining life income, this planned gift arrangement allows the donor to give the income from specified assets to the Center over a period of years. This option can be particularly attractive for the donor who has assets, the income from which he or she no longer needs, but which he or she would like to pass on to children or grandchildren.
Retained Life Estate
Donors may retain occupancy for life of a primary residence, vacation home, or farm while also giving it irrevocably to the Center. With this type of gift, the donor(s) have the benefit of continuing to use their residence during their lives. The property passes to the Center at the death of the last beneficiary.
Copyright © 2001 - 2008 The Clay Center for the Arts & Sciences of West Virginia. All rights reserved.
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Clay Center
for the Arts & Sciences of West Virginia
One Clay Square
Charleston, WV 25301
304-561-3570