Humboldt Arts Council began the Carnegie Restoration Project in 1996 with a $1.5 million capital campaign to create a cultural center and regional art museum for our community. Opened January 1, 2000, as the Morris Graves Museum of Art , the restored historic landmark now hosts seven premier galleries, including a courtyard sculpture garden; a performance rotunda for music, dance and literary arts; a young artists' academy; and a community arts resource center.
Here’s how your support of the HAC can benefit our work
and your own financial situation
The easiest way to earn a charitable deduction and support the arts at the same time is simply to write a check. Your gift must be postmarked by December 31 to qualify as a gift for the current year. Cash contributions are deductible up to a total of 50% of your adjusted gross income. Excess charitable deduction can be carried forward for up to five additional years.
For example, if you make a $10,000 gift before December 31 and you are in the 28% marginal tax bracket, your cash gift could save you $2,800 in taxes.
By giving long-term appreciated stock, you can save taxes in two ways. First, you avoid paying capital gains tax on the increase in value of your stock. You also 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 and carried forward for an additional five years.
For example, let’s say you bought some stock many years ago for $2,000 and the stock is now worth $20,000. An outright gift of that stock would result in a charitable deduction of $20,000. In addition, you would permanently avoid paying capital gains tax on the $18,000 of appreciation.
If you own property that has appreciated in value, a charitable gift may be an attractive option. You can claim an income tax deduction based on the fair market value of the property, avoid all capital gains taxes, and remove that asset from your taxable estate. And you have the option to continue to use the property for life.
You can use life insurance to fund a gift to the HAC. To receive a charitable deduction, name HAC as both the owner and beneficiary of the policy. If your policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the first. In addition, if you continue to pay premiums on a policy that HAC owns, you can deduct the premium payments.
Life income gifts allow you to receive an income as a result of making a charitable gift. Depending upon the plan you choose, the income can be fixed or variable, and can be for you or other beneficiaries you choose.
For example, you might create a charitable remainder trust to pay income to you life, and contribute money, stock or other property to it. Once placed in the trust, the assets can be sold (without capital gains tax), and the proceeds invested to produce a higher yield. Life income gifts entitle you to an immediate income tax deduction, based on the present value of your gift to HAC.
This may also be a good time to plan your estate. We hope you will consider making a charitable gift in your will or living trust to benefit HAC, and perhaps save some estate taxes. If you already have a will or living trust, you can easily add HAC as a beneficiary, with an amendment called a codicil.
Humboldt Arts Council does not give tax or legal advice. We strongly recommend that you discuss your plans for charitable giving and your tax situation with your own professional advisor.