Many of our members and friends have already discovered that a planned gift can be an invaluable component of their financial and charitable planning. Whether you are seeking to satisfy current income and estate tax needs, diversify a portfolio, liquidate a business, prepare for retirement, or make low yielding assets more productive, a carefully crafted planned gift may provide a solution that satisfies your needs and achieves your philanthropic goals. Endowing the museum through gifts for individuals or guilds, gift annuities, and designated agency funds are some of the most popular options.
You can learn more about some of the planned giving options the museum offers here.
This information is not intended to provide specific advice about the legal or tax implications of charitable giving. Before making a gift to the Calvert Marine Museum Society, please consult with your financial, tax, and legal advisors for a thorough analysis of your individual situation and the tax consequences to decide which of these ways will benefit you most.
An endowment is a fund established within the institution that provides a predictable, independent source of income from year to year and lies in perpetuity with the Calvert Marine Museum.
The endowed fund (the donation) is invested in accordance with the Calvert Marine Museum Society’s policy governing endowments. This investing creates income in the form of interest, dividends and gains while the principal remains untouched. In accordance with Museum endowment spending policy, a portion of the income is spent for the purpose stated by the donor in their agreement and a portion of the income is rolled back into the endowed fund to help grow the principal. This policy allows for the continual growth of both principal and income and, in this way, the fund lasts in perpetuity.
Creating an endowment provides you with the opportunity to have a lasting impact on the museum and the community. Endowments can be designed to reflect your specific area of interest. The fields of Maritime History, Paleontology, Estuarine Biology, Education, Wood Carving, Boat Building, and many others would have a secure future and opportunity to expand with an endowment created by you.
Donors will receive a charitable tax deduction when the gift is received.
Charitable Gift Annuity
A Charitable Gift Annuity is cash or property donated during a donor’s life to the Calvert Marine Museum Society. In exchange for the gift, CMMS promises to make a fixed lifetime payment to the donor and/or other individuals. Generally, the payment amount conforms to a prescribed table measuring payment on the recipient’s life expectancy. The Calvert Marine Museum keeps any remaining assets upon the death of the payment recipient.
Donors over age 55 are eligible for this type of annuity. A $10,000 minimum donation of cash or stock is typical and no additional contributions are permitted. The donor can claim a charitable tax deduction. If a donor funds a Charitable Gift Annuity with long-term capital gain property, the donor will have to report only some of the gain, and may be able to report it in installments over many years.
Charitable Remainder Trust
A Charitable Remainder Trust is cash or property donated during a donor’s life or at death to an irrevocable trust. The trust makes a fixed payment to the donor and/or other beneficiary for their life or lives or a specified term of not more than 20 years. At the end of the payment term, the charity receives the remainder of the trust.
Individuals, trusts, partnerships, corporations, estates and other legal entities are eligible to create a Charitable Remainder Trust with no contribution limits. Cash, stock, bonds, mutual funds and other property can be contributed. Generally, a donor will receive charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property.
Charitable Lead Trust
A Charitable Lead Trust is cash or property donated to an irrevocable trust. The trust makes a fixed payment (annuity trust) or a percentage of trust principal (unitrust), to the Calvert Marine Museum during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts
Gifts by Will
Through various types of bequests to The Calvert Marine Museum Society, you may secure a charitable estate-tax deduction for the value of the gift. Best of all, you will know that your generosity will support our mission for years to come.
You may prefer to state in your will or trust a sum of money, a percentage of your estate, a specific item, a work of art, or real estate that you wish to give to The Calvert Marine Museum Society. Whatever form of bequest you choose, it is not subject to estate or inheritance taxes and significantly reduces the tax burden of an estate. The value of the bequest may be deducted when the taxable estate is determined, and there is no limit to the deduction.
You can make a bequest for a specific dollar amount or for a percentage of your estate. You can designate your bequest for general use or you can restrict its use. Many individuals establish endowments through wills that honor the memory of a family member or another loved one. These endowments live forever, since only the income is used annually. Since a will is an important legal document, you should consult with an attorney.
If you are in need of some wording to include a bequest in your will, below are two basic examples:
Percentage of estate for unrestricted purposes
I give, devise, and bequeath to The Calvert Marine Museum Society, a not-for-profit organization located in ns, Maryland, _____ percent (%) of the rest, residue, and remainder of my estate as an unrestricted gift to be used at the discretion of the Board of Trustees of The Calvert Marine Museum Society for the general purposes of The Calvert Marine Museum Society, located in Solomons, Maryland.
Percentage of estate for specific purposes with an endowment provision
I give, devise, and bequeath to The Calvert Marine Museum Society, a not-for-profit organization located in Solomons, Maryland, _____ percent (%) of the rest, residue, and remainder of my estate to establish the ____________________ENDOWED FUND. The principal of this Fund shall be invested as part of The Calvert Marine Museum Society's permanent endowment and in accordance with its policies. The income there from is to be used by The Calvert Marine Museum Society, located in Solomons, Maryland, for____________________________________. Contributions may be added to the Fund at any time.
If changed circumstances should at some future time make it impractical to continue using the income from the Fund for the purpose designated, then the Calvert Marine Museum Society Board of Directors may re-designate the purpose for which the Fund's income may be distributed, provided that the Fund shall continue to bear the name ________________ ENDOWED FUND, and that the amended terms shall adhere as closely as possible to my original intent.
Each individual situation is unique and, therefore, these examples include only some of the possible gift opportunities. We encourage you to share your final will provision with The Calvert Marine Museum Society to ensure that your wishes will be properly followed and recognized.