Every gift and pledge – large or small – made by March 31, 2010 will help us achieve a $150,000 challenge grant from the prestigious Kresge Foundation.  Pledges to the campaign can be made payable over one to three years.

The following information provides an explanation of the various ways donors can plan significant gifts to the campaign while taking full advantage of the income and estate tax benefits allowed under the law.

Level of Gifts Needed to Achieve Goal

Outright Gifts

Most donors who pledge support to Providence Children’s Museum will fulfill their commitments with payments of cash or marketable securities.

• Cash: Cash contributions qualify for a charitable income tax deduction.
  online or download a mail-in gift slip (PDF).
  
• Securities: There are distinct tax advantages to considering gifts of appreciated securities such as stocks, bonds and mutual funds. The donor incurs no capital gain tax on appreciated securities given for charitable purposes and can claim a charitable income tax deduction up to 30 percent of annual adjusted gross income (with a five-year carry-over).
• IRA: Distributions from qualified IRA plans may be donated directly to charitable institutions tax-free, per an IRA charitable rollover provision extended through 2009 and possibly beyond. Rolling over all or part of your IRA to the Museum provides an outstanding tax advantage. Donors who are 70 1/2 or older are allowed to exclude up to $100,000 from their annual gross income for qualified charitable distributions from IRAs. The rollover may be used to satisfy required minimum distribution requirements.
  
• Closely Held Stock: A charitable gift of stock in a closely held corporation with no ready market price requires a partial appraisal summary or in the case of gifts over $5,000, a qualified appraisal to determine the value of the gift. The donor receives a charitable deduction based on the appraised value, incurs no capital gain tax liability and can claim a deduction equal to 30 percent of annual adjusted gross income (with a five-year carry-over.)
• Tangible Personal Property: Gifts of personal property qualify for a charitable deduction equal to the appraised value, provided the item donated is directly related to the mission of Providence Children’s Museum.
• Corporate Gifts: A corporation can make and deduct charitable gifts of up to 10 percent of taxable income per year.
• Matching Gifts: Numerous businesses and companies have matching gift programs through which they will match an employee’s charitable gift in varying amounts.  Donors are urged to obtain their employer's matching gift forms and leverage their own gifts.
• Life Insurance: The use of life insurance policies for charitable giving is another option to consider when planning a major contribution.  A paid-up policy yields a charitable income tax deduction approximately equal to the policy's replacement value.  If premiums remain to be paid, the value of the gift is slightly in excess of the policy's cash surrender value.  If the donor continues to pay the policy premiums, a contribution deduction is allowed for premium payments.  In order to qualify for the charitable deduction, the donor must relinquish all incidents of ownership in the policy and irrevocably designate Providence Children’s Museum as beneficiary.

Planned Giving Opportunities

It is the priority of the Play Works Campaign to receive outright gifts to ensure funding for the Museum's near-term needs.  For those who desire to make a significant contribution to Providence Children’s Museum but also wish to accomplish estate planning objectives or retain an income from the assets contributed, a gift from one’s estate or a life income gift might be considered.

• Gifts via a will, living trust or retirement plan are three ways to significantly support Providence Children’s Museum.  These gifts offer estate tax savings and create a living legacy to help ensure a secure future for Providence Children’s Museum.
• Charitable life income trusts like charitable remainder trusts and charitable gift annuities provide current income and an immediate charitable income tax deduction for the donor.  The income provided by these plans could benefit the donor as well as other named beneficiaries for life.  At death, the remainder interest is distributed to Providence Children’s Museum.

This is for information purposes only and should not be considered legal, accounting or other professional advice.  We encourage you to consult your attorney, accountant or other financial advisor prior to making a gift to Providence Children’s Museum.

How You Can Help

Click here to download a pledge form. (PDF)