Sustaining CCA’s role as a center of creativity for all of Santa Fe and providing great art and enriching education programs for generations to come requires the continuing cooperation of people who understand the transformative role CCA plays in our community. No matter the size, gifts help to ensure the continuation of CCA’s artistic excellence and reinforce its role as a recognized, vital public space for cultural exchange.
Donations of Cash and Securities
A gift of cash is the most popular way of supporting CCA. Gifts of cash are ordinarily tax deductible up to 50% of your adjusted gross income, less certain losses, in the year of your contribution (with a five-year carryover for the excess not used).
Donors of stocks, bonds, mutual funds and other marketable securities can enjoy the dual benefits of eliminating capital gains taxation and receiving a charitable deduction. If the donor owned the securities for more than one year then the charitable deduction is equal to the fair market value of the securities. If the donor owned the securities for less than one year then the charitable deduction is equal to the cost basis. In both cases the donor may offset up to thirty percent (30%) of his or her AGI for the year of the gift, with a five year carryover.
Donations of Qualified Retirement Plans or Insurance Policies
Retirement Plan Assets
Qualified retirement plans permit individuals to accumulate savings for retirement on a tax-free basis. They include IRAs, Keoghs, SEPs, 401(k)s, 403(b)s, and ESOPs. CCA may be named as the designated beneficiary of a qualified retirement plan. Donors who name CCA as the designated beneficiary of their qualified retirement plan receive a gift or estate tax charitable deduction and eliminate any income taxes otherwise payable when distributions from the plan are made.
CCA may be designated as the beneficiary of a life insurance policy or may receive a donation of an existing insurance policy. The amount of the charitable deduction will vary depending on the nature of the interest transferred and the “incidents of ownership” that are retained by the donor. New Mexico law specifically allows CCA to be the owner and beneficiary of a life insurance contract, although residents of other states should consult their advisors about the possible restrictions on such a gift.
Charitable Remainder Trusts
Charitable remainder trusts are established through the contribution of cash, securities, or other property into an irrevocable trust. The trust provides the donor or other beneficiaries with annual payments for a term not to exceed twenty years. Upon expiration of the term, the remainder passes to CCA. In most cases, the donor is entitled to income, gift and estate tax charitable deductions for the amount of the remainder interest that is anticipated to pass to CCA upon expiration of the term. Once assets are transferred into the charitable remainder trust, a subsequent sale by the trustee of the assets will usually avoid capital gains taxation at the trust level.
Charitable Lead Trusts
Like charitable remainder trusts, charitable lead trusts are established through irrevocable contributions of cash, securities, or other assets to a trust. These trusts provide CCA with a stream of income for a term of years of for the life of one or more individuals. Upon expiration of the term, the remaining assets held in the charitable lead trust pass to the donor or to the donor’s chosen beneficiaries. Charitable lead trusts are often used by donors to benefit CCA and to pass assets to their loved ones at a reduced tax cost.
Bequests of property generally require advance preparation by CCA. We encourage donors who make such bequests to contact CCA at the time that their wills or trusts are being prepared. For assistance in these areas, please contact us here.