Gift Ideas

Charitable giving to the Academy of Fine Arts is as easy as (1) making a charitable gift, and (2) saving on your taxes! We'd like to make it even easier with this primer on some of the best ways to save and give to the Academy at the same time!

The tax laws intentionally encourage charitable giving. Because of the income tax charitable deduction, individuals who make their gifts by December 31 and itemize can significantly reduce their income taxes for that year.

Giving is, of course, much more than charitable deductions and tax savings. Your contributions make our work possible.

Included here is a brief introduction to some of the best tax-advantaged methods of giving. We would be happy to talk with you individually to answer your questions and provide additional information.

Gifts of Cash

There is no easier way to get your charitable deduction and to help the Academy of Fine Arts at the same time than by simply writing a check. If you itemize, your outright gifts of cash are fully deductible for federal income tax purposes up to 50% of your adjusted gross income. If your total gifts exceed this limitation, the excess may be carried forward for tax purposes for up to 5 additional years.

Gifts of Stock

Giving long-term appreciated stock offers you a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in value of your stock. In addition, you receive a tax deduction for the full, fair-market value of the stock on the date of the gift. For income tax purposes, the value of such gifts may be deducted up to 30% of adjusted gross income, with an additional 5-year carry forward.

Gifts of Life Insurance

If you own a life insurance policy that is no longer needed, consider it as the perfect gift to the Academy of Fine Arts and as a vehicle for a year-end charitable gift! To receive a charitable deduction, name the Academy of Fine Arts as both the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will be become tax deductible each year. (It's easy to contribute a life insurance policy to us. Just check with your life insurance agent for details on which forms to complete.)

Bequests

While you're considering your income tax savings, this may also be a good time to consider long-term tax savings. For some, the federal estate tax can still take approximately 50% of one's estate at the time of death. That's a higher taxer bite than the income tax! It definitely pays to do some advance planning with your attorney and other professional advisors.