Planned Giving Options
Endow the Future...
With a Bequest to The Schubert Club
If you are one of the many people who have benefited from The Schubert Club’s beautiful gift of music, why not plan now to return that gift for the future benefit of others? Planning a bequest for The Schubert Club honors your values and supports the organization that has added so much to your life. The Schubert Club has presented the greatest musical talent from around the world for almost 125 years. Your gift can ensure that it continues for 125 more.
Adding a provision to your will is easy – your attorney will be glad to give you professional assistance. A typical bequest might state:
I give and devise to The Schubert Club, Inc., a Minnesota non-profit corporation, $ _______ (insert an amount, property, percentage, or remainder) for its general, unrestricted purposes.
Your bequest may be unrestricted as shown above, or may provide specifically for annual operating support or the endowment fund. It will be fully tax-deductible for estate tax purposes, and will reduce the size of your estate. A will provision does not impact the use of your assets during your lifetime.
If you’d like more information, or if you’ve already made a bequest for the benefit of The Schubert Club, please contact Rebecca Klein at 651/292-3267 or  . Both present and future audiences will be grateful for your generosity.
Earn Income...
With a Charitable Gift Annuity
A gift annuity is a simple contract whereby the donor makes a gift of cash, stock or other property in return for a lifetime of fixed annual income payments. Upon the death of the donor(s), the remaining assets are invested for the long-term benefit of The Schubert Club.
Benefits:
- Steady life income, usually based on an appealing annuity rate
- Current income tax charitable deduction for the gift's remainder value
- Life income payments that are partially tax-free.
The Schubert Club is a partner with The Saint Paul Foundation, which administers The Schubert Club's gift annuities. Payout rates are determined based on the beneficiary's age, in accordance with the American Council on Gift Annuities' standard rates.
For example: A 70-year-old donor, establishing a charitable gift annuity with $25,000 cash, would receive an annuity rate of 6.5%, resulting in payments of $1625 annually for the remainder of the donor's life. The donor would also receive a charitable income tax deduction of $10,090.62, and for the next 16 years $937.70 of each annual payment would be tax-free*.
*Information for illustrative purposes only, as rates change periodically.
Charitable gift annuities can be written for two lives (i.e. the donor and a spouse), or for younger persons, can be deferred to a later date (i.e. income payments begin at a future date, thereby qualifying for a higher annuity rate). Gifts funded with stocks provide even greater tax savings, incurring no immediate capital gain tax on the transfer and sale of highly appreciated, long-term assets. A charitable gift annuity may also provide for more income than ownership of the stock, especially in the case of a stock with a low payout.
Gift annuities can be established with a minimum investment of $10,000. For a personal illustration of how a charitable gift annuity can benefit you, please contact Rebecca Klein at The Schubert Club.
Invest in the Future...
With a Pooled Income Fund
Pooled income funds combine gifts from many donors to create common investment portfolios. A donor is paid income, the amount of which fluctuates based on the investments of the portfolios. New income is paid in proportionate shares to donors and their beneficiaries for their lives. When the donor's life income interests end, the shares of the pooled income funds are either liquidated and given tot he chosen organization(s) to add to its endowment, or the investment is continued in perpetuity with the income paid to the designated organization(s).
Pooled income funds are typically most popular during periods of high interest rates. Annual payments are considered ordinary income and donors receive a partial income tax deduction in the year of the gift.
The Minnesota Fund for Planned Giving, incorporated in 1997, is one option for investment. Managed by a volunteer board, it offers low administrative expenses and has a track record of high returns. Its investment objective is to provide the donor with increasing annual income from investments in equities of companies with a record of increasing cash dividends. Upon the death of the donor, The Fund directs the fully appreciated value of the account to the beneficiary organization(s). The minimum contribution is $5,000.
Provide for Your Loved Ones...
With a Charitable Remainder Trust
A Charitable Remainder Trust is an excellent way for donors of greater means to receive life income while benefiting an organization. Cash or property is transferred to a trust, which pays the donor/beneficiary either an annual fixed income, or a variable income based on a percentage of the trust's annual fair market value. upon the death of the beneficiary, the charity(s) receive the remaining assets as specified by the donor.
Like an annuity, the donor is entitled to a partial federal income tax charitable deduction in the year the trust is funded (or an estate tax charitable deduction for trust funded at death), and incurs no immediate capital gains tax on the transfer and sale of highly appreciated, long term assets. However, a Charitable Remainder Trust is far more flexible than an annuity, with the donor able to choose a fixed or fluctuating payment, the amount of the payment, the frequency and timing of the payment, and to tailor the investment strategy and taxable character of the income to meet the unique needs of the donor. The donor can also reserve the right to change the recipient.
When setting up a trust, a donor usually works with an attorney and chooses a trustee. A trustee can be a bank or trust company, brokerage firm, other fiduciary or the donor himself. The Schubert Club often partners with The Satin Paul Foundation, which can set up the trust and also serve as the trustee, with the remaining assets to benefit The Schubert Club and/or other charitable organizations.
More Ways to Give and Suggested Assets
- Cash: A cash gift is the simplest and most convenient way to make a gift. Contributions are fully deductible for federal income tax purposes. If the deduction in one year exceeds 50% of the donor's adjusted gross income, the remaining deduction amount can be carried forward for up to five additional year.
- Stock: Appreciated securities, including stocks, bonds and closely held stock, make excellent gifts because of the favorable tax benefits. The gift is deducted at fair market value, with no capital gains taxes. Along with the immediate avoidance of capital gains tax liability, when donated to fund a life income plan, the income is often double or triple what the donor was receiving from the stock.
- Real Estate: Gifts of real estate can provide the same tax advantages as gifts of appreciated securities. Donors can also contribute a private residence,e vacation home or farm while retaining a life estate--the right to live in and utilize the property during their lifetime.
- Insurance: Naming The Schubert Club as the beneficiary of a new or exiting life insurance polity is an easy way to make a substantial contribution. Benefits to the donor include a tax deduction for the value of the policy and the premiums paid each year.
- Retirement Assets: IRAs and other retirement assets are excellent assets to utilize for charitable giving. Many people draw only the minimally prescribed annual amounts from their plan, an leave the remainder to charity. Potentially subject to both income and estate taxes at death, taxes can be avoided in a properly structured gift by naming The Schubert Club as the beneficiary. In a similar manner, donors can also name The Schubert Club as the beneficiary on savings accounts and certificates of deposit. Be certain to use our Legal name, The Schubert Club, Inc.
Legal Name and Address:
The Schubert Club, Inc.
302 Landmark Center, 75 West Fifth Street
Saint Paul, Minnesota 55102
651-292-3267
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