PLANNED GIVING

Beauty and creativity—these are the qualities we associate with the arts. but like everything else, financial resources are needed if South Shore Arts is to maintain its present programs and continue to grow in the future.

MAKE A LASTING IMPRESSION
South Shore Arts needs your assistance to unlock our full potential. Here are seven ways you can help:



CASH
All cash contributions—large or small—are welcomed and encouraged. Gifts of cash, either on an annual basis or all at once, are always appropriate.

EXAMPLE: This year Juanita decided to give $10,000 to the Twenty First Century Fund. If she is in the 33% tax bracket, she should be able to claim an itemized tax deduction of $3,300. So that $10,000 gift really cost her $6,700. Note: If she is writing a check, that check should be completed any time before December 31 and mailed or delivered in person no later than December 31. Even if the check is deposited after the 31st, it will still be considered a completed gift for the prior year.



LIFE INSURANCE
Many people have old life insurance policies that were originally purchased to pay off a mortgage or put their children through college. That original purpose may now be fulfilled. If this is true for you, please consider changing your beneficiary to the Twenty First Century Fund. Some day, those proceeds will create a permanent endowment in your name.

EXAMPLE: Many years ago, James purchased a $20,000 life insurance policy so that his daughter could attend college if anything happened to him. Aretha graduated eight years ago (first in her family to attend college); so the policy is no longer needed for its original purpose. James could change the beneficiary to name the Twenty First Century Fund to receive all or a portion of the proceeds on his death. This is just one example of ways to give with your life insurance.



APPRECIATED STOCK
Many people hold stock that has appreciated in value. If this is your circumstance, you might wish to sell this stock but don’t want to pay the capital gains tax. One way to avoid this tax and also obtain an itemized charitable deduction is to give that stock directly to South Shore Arts. The Twenty First Century Fund will reinvest the proceeds from the stock so that future earnings will be used to fund South Shore Arts projects.

Note: please contact South Shore Arts first for the appropriate language to transfer stock.

EXAMPLE: Sheila has a substantial quantity of a local corporation’s stock. She originally bought it many years ago when she worked at the company’s plant. Today her stock is worth several times its purchase price. If she gives that stock to the Twenty First Century Fund, she can "leverage" an income deduction for herself equal to the full current value of the stock provided she itemizes her deductions. And she will not have to pay any income tax on the gain.



BEQUESTS BY WILL
Many people find it convenient to leave bequests in their Will to friends, family, and charities. If you are interested in leaving a bequest to the Twenty First Century Fund, your attorney will need to amend your Will or Trust. If your attorney will contact us, we can provide the exact legal descriptions for South Shore Arts and our Twenty First Century Fund.

EXAMPLE: Each year, Jane has faithfully given $200 to South Shore Arts. If she wants to make that a permanent annual gift of $200, she could accomplish this goal by leaving a $4,000 bequest by Will to the Twenty First Century Fund. Year after year, earnings could provide that $200 gift. If $10,000 were left by Will, the Twenty First Century Fund could help support South Shore Arts programs with $500 each year, every year. Endowment giving is the gift that keeps on giving.



RETIREMENT PLANS
The Twenty First Century Fund can be named as beneficiary of part or all of any death benefit included in your retirement plan. In fact, your retirement plan death benefit might be the most advantageous form of charitable gift. By using retirement plan assets to make your charitable bequest (and leaving other assets to family members), you may be able to shelter your estate and heirs from a significant income tax burden.

EXAMPLE: Paul has always been conscientious about putting money away for retirement and has accumulated a substantial sum in retirement programs. After the premature death of his wife, he realized that his estate would face significant taxation upon his subsequent death. After consulting with his advisors, Paul learned that he could reduce both income and inheritance taxes by leaving half of his pension death benefit to Twenty First Century Fund. His children would receive the other half plus the balance of his property. By planning, he was able to provide for his family and also leave a legacy in his family’s name for the benefit of South Shore Arts.



GIFT ANNUITIES
Most people want or need income from their assets. If there were a way to give the assets away but still have income, they might be interested. This is possible through a gift annuity.

Consider these advantages:
  • Guaranteed, fixed, quarterly payments to you for life
  • Steady income, partially tax-free, in less than stable times
  • Available for two persons, such as a married couple
  • Immediate charitable tax deduction
  • Reduced taxable value of your estate
  • Great satisfaction in knowing your generosity helps South Shore Arts

EXAMPLE: Agnes, age 80, decides to transfer stock worth $100,000 to the Twenty First Century Fund in return for a 8 percent annuity for life.* For the rest of Agnes’s life, she will receive $8,000 per year. She completes this transfer without incurring capital gains taxation on her stock which was only paying 2 percent in dividends. The annuity increased her cash flow and she will now pay income tax only on a portion of what she receives each year. At her death, the Twenty First Century Fund will continue to hold the funds as a permanent source of support for South Shore Arts programs.

*Annuity payout rates vary with age and are determined annually. The figure shown above is for annuities established in July 2003. Other ages and payment rates: age 70 – 6.5%, age 75 – 7.1%, age 85 – 9.5%.



CHARITABLE TRUSTS
One type of Charitable Trust is the Charitable Remainder Trust, which is similar to an annuity except that instead of giving the asset directly to the Twenty First Century Fund, you appoint a trustee to oversee the gift. Remainder Trusts have two payout modes—an annuity trust and a unitrust. If you use the annuity trust, you can elect to receive a fixed dollar payment for either life or for a set period, such as 20 years. After that the remainder of the funds are used by the Twenty First Century Fund to support South Shore Arts programs. The unitrust format is similar except that the annual payment equals a certain percentage of the annual value of the trust. The percentage is fixed, but the dollar amount paid to you will fluctuate depending on whether the trust’s market value is up or down that particular year.

The other type of Charitable Trust is known as a Charitable Lead Trust. In this case, the charity receives payments currently and after the designated period, the trust terminates and the remainder is returned to the donor or, more typically, to his or her children or grandchildren.

EXAMPLE: Getta, age 72, wants to make a sizeable contribution to the Twenty First Century Fund, but she needs the income from her investments. Getta's advisor suggests that she establish a charitable remainder annuity trust funded with $400,000 of appreciated securities. Getta will receive $20,000 annually for as long as she lives, and the remainder will be payable to the Twenty First Century Fund at her death. Assuming the applicable federal rate (AFR) is 8% at the time of the funding, Getta would also receive a current charitable deduction of $259,164.



MAKING A LASTING IMPRESSION CAN BE THIS SIMPLE
The following is sample language that can be used in making a bequest to the Twenty First Century Fund. It is important that the wording be exact.

"I give, devise and bequeath to South Shore Arts, Inc., a not-for-profit organization incorporated in the State of Indiana, with the principal office at 1040 Ridge Road, Munster, IN 46321, for the benefit of the Twenty First Century Fund, . . ."

WHAT IS AN ENDOWMENT ANYWAY?
The Twenty First Century Fund is a separate entity with its own Board of Trustees whose sole responsibility is to safeguard and invest funds for perpetual use in supporting South Shore Arts.

Each year the trustees determine the rate of distribution from the Fund to South Shore Arts. Contributions added to the Twenty First Century Fund Endowment are intended to provide a permanent annual source of support for South Shore Arts projects and programs. That’s why it is often said that contributions to endowments are "gifts that keep on giving."

The Twenty First Century Fund has partnered with Legacy Foundation, Lake County’s community foundation, to safekeep and invest its funds. This partnership gives donors the additional assurance that their contributions will be used as they instructed. If you wish to contact the Legacy Foundation directly, call 219 / 736.1880 or visit their website at www.legacyfoundationlakeco.org

THE TWENTY FIRST CENTURY SOCIETY
The Twenty First Century Society recognizes individuals who have made a planned or deferred gift commitment to the Twenty First Century Fund through a variety of giving opportunities. These include bequests by Will, provisions in a trust, life insurance policies or retirement plans.

If you currently have a planned gift commitment in place to benefit the Twenty First Century Fund, you are eligible for membership in the Twenty First Century Society. From time to time, Society members will be invited to special activities or events of interest.




Twenty First Century Fund
South Shore Arts
1040 Ridge Road
Munster, Indiana 46321
219 / 836.1839
john@southshoreartsonline.org