There are many types of planned giving. Find information about the options below, and contact Shawna Wagner, Development Director, at email@example.com to talk about your ideas.
Types of Planned Gifts
Meeting with your estate planner? Read this.
Vesterheim Museum and Folk Art School is a registered 501c3 charity. Our Federal Tax Identification Number is: 42-6081638.
Sample Codicil language for your will:
A codicil is supplemental language to a will that explains or modifies it. A codicil that benefits Vesterheim might be written by dollar amount, a percentage of the state or remainder, or a specific object (like a family immigrant chest). It may also be directed to a particular program. Those codicils that reference specific programs should also include a clause that won’t tie the investment up if such funding isn’t necessary at the time of the donor’s death.
They are typically simple inclusions, like this:
“I (NAME), A RESIDENT OF THE County of (county), State of (state), declare that this is a codicil to my last will and testament, which is dated (date the original was signed).
“I bequeath to Vesterheim Museum, 523 West Water Street, Decorah, Iowa 52101 the sum of $__________, to be used for such purposes as the Board of Directors may designate.”
“I bequeath to Vesterheim Museum, 523 West Water Street, Decorah, Iowa 52101 ____% of my gross estate, to be used to enrich the folk art school endowment or for such purposes as the Board of Directors may designate, if such an endowment is fully funded.”
Plain and simple, bequests are gifts made to a charity through a donor’s estate. These are the most popular planned gifts and allow donors to make commitments without using assets that they may want to use in other ways.
Charitable Gift Annuities
A charitable gift annuity is a contract (not a “trust”), under which Vesterheim, in return for a transfer of cash, marketable securities, or other assets, agrees to pay a fixed amount of money to one or two individuals, for their lifetime. This is also a very simple planned gift to set up and is ideal for donors who want to preserve a lifetime income and take a tax deduction as well.
Charitable Remainder Trusts
A charitable remainder trust is an irrevocable trust that generates a potential income stream for the donor who sets up the trust or other beneficiaries, with the remainder of the donated assets going to Vesterheim after a set length of time.
Charitable trusts offer flexibility over your charitable beneficiaries as well as lifetime income, supporting retirement, estate planning and tax management.
Charitable Lead Trusts
A charitable lead trust reduces your beneficiaries’ taxable income by first donating a portion of the trust’s income to Vesterheim, transferring the remainder of the trust to the beneficiaries after a set length of time.
To make a gift of life insurance, donors can transfer their policy so that Vesterheim becomes the owner and beneficiary. Donors may then take an immediate income-tax deduction. By continuing to pay the premiums, donors may deduct each payment in subsequent tax years.
Gifts of real estate are a wonderful way to remember Vesterheim, and a great tax savings because they help donors avoid any capital gains tax burden. There are a few considerations for those who might want to make this kind of gift:
- The property ideally will be highly appreciated, offering the maximum tax benefit.
- Donors must be prepared for a lengthy due-diligence process by the charity.
- The property must be debt-free.
- The individual must be willing to irrevocably transfer the property to the charity, which will exclusively control the sale, including negotiating the sale price.
Donors who meet these conditions can make an enormous difference to Vesterheim and other charities, while saving BIG on capital gains taxes.
Founded in 1989, the Valhalla Society consists of a special group of donors who have chosen to honor their passion for preservation with planned giving. These gifts provide a lasting legacy for the future of Vesterheim. Vesterheim thanks these Valhalla members for their contributions.
PRESERVING HERITAGE FOR FUTURE GENERATIONS
Vesterheim is fortunate to have friends who are eager to express their generosity by supporting its future with charitable gifts. Our list of endowed funds illustrates how private contributions make a difference. This compilation of endowed funds established at Vesterheim from its beginning in 1877 to the present reflects a history of philanthropy at the nation’s most comprehensive museum dedicated to a single immigrant group.
WHAT IS AN ENDOWED FUND?
An endowed fund is a permanent source of income for Vesterheim programs and/or departments. Gifts to an endowed fund are invested. Endowed funds accrue interest annually, a portion of which is used for each endowment’s stated purpose. The remainder of the interest is reinvested to perpetuate the endowment.
HOW DO I LEARN MORE ABOUT VESTERHEIM’S ENDOWED FUNDS?
To learn more about endowed funds at Vesterheim, please contact Shawna Wagner at 563-382-9681, ext. 103, or email firstname.lastname@example.org.
WHY ESTABLISH AN ENDOWED FUND?
There is a growing need for the museum to secure long-term financial stability in order to deliver reliable service despite changes in the economy. Building endowments is one of the most important ways to ensure Vesterheim’s financial health. Each gift is an investment in the future of Vesterheim, one of America’s most treasured cultural resources.
Donors are encouraged to name the endowment in a way meaningful to them (i.e., Johnson Family Fund, John Johnson Fund for Excellence, etc.).
WHAT IS THE MINIMUM AMOUNT NECESSARY TO ESTABLISH AN ENDOWED FUND AT VESTERHEIM?
You can contribute any amount to any of the listed endowed funds, or create your own. A gift of $25,000 or more can initiate a named endowment and can be a thoughtful way to honor or memorialize a loved one. The gift can be paid all at once or in payments (typically three to five years). Until $25,000 is reached, the interest gained is reinvested in the fund. Once the fund reaches the $25,000 amount, the annual interest will payout to purpose.