HOW YOU CAN HELP WITH A CHARITABLE GIFT
The Model T Museum operates solely from gifts it receives from individuals, corporations, and foundations. Those gifts can be immediate or can be deferred gifts.
Immediate gifts are desirable to the Museum because they provide income to provide support for our daily operating costs. Examples of outright gifts include:
- Cash. Gifts of cash given to MTFCA/the Museum are fully deductible for federal income-tax purposes up to 50% of your adjusted gross income. If your gift exceeds 50% of your adjusted gross income, the excess may be carried forward for tax purposes for up to five additional years.
- Stocks. We can also accept gifts of publicly traded stocks at fair- market value. Fair-market value is determined under IRS rules.
Gifting stocks has other advantages for you! A gift of appreciated stock that you have held for more than one year offers you a three-fold tax savings. First, you avoid paying any long-term capital gains tax on the increase in value of the stock. Second, you receive an income tax deduction for the full fair-market value of the stock on the date of the gift. Finally, because it has been given to charity, the stock will not be subject to estate tax upon your passing.
Sometimes, it’s hard to give cash, not knowing if you’ll need it during your lifetime. A deferred gift might be right for you! Consider making MTFCA/the Museum a beneficiary of all or a portion of your assets at the time of your passing. These beneficiary designations are revocable so you can change your designation during your lifetime. Here are some examples of deferred gifts:
- Bequests by will or trust. Bequests are the most common form of deferred gifts. You can specify in a will or trust the Model T Ford Club of America/Model T Museum as the recipient of the gift. Any restrictions on the use of the bequest should be made known to us in a separate document, prior to your death.
Bequests can take several forms:
- Specific bequest. You may give a specific sum of money. Specific bequests assure the MTFCA/Museum will receive exactly what you wished to give.
- Percentage bequest. You direct a percentage of your estate to be given to MTFCA/Museum. This will fluctuate as the value of your estate changes.
- Residuary bequest. This directs that the remainder of the estate or a designated percentage of the remainder of the estate, after all other provisions in the will or trust are satisfied and all estate administrative costs are paid, comes to MTFCA/Museum. A residuary gift is a gift of “what’s left” after all other gifts are completed and made. A residuary bequest does not guarantee that MTFCA/the Museum will receive a gift.
Charitable bequests require the assistance of an attorney who is knowledgeable about state and federal laws governing wills, trusts, and charitable gifts. When working with your attorney or estate planner, be sure to let them know that the Model T Ford Club of America is a 501(c)3 corporation and all gifts made to us are tax-deductible.
Gifts of Life Insurance
Another way of making a deferred gift is naming MTFCA/the Museum as the beneficiary of your life insurance policy. If you aren’t entirely sure how you want to distribute your assets right now, you can list us as a revocable beneficiary. That allows you the flexibility to change if your financial situation changes. Ask your insurance provider how to do this. It’s easy!
Gifts from your Retirement Assets
It is also possible to donate retirement assets, during your lifetime and as part of your estate.
Donating during your lifetime. People who are age 70 ½ or older can contribute up to $100,000 from their IRA directly to a charity and avoid paying income taxes on the distribution. This is known as a qualified charitable distribution (QCD). Ask your financial advisor for help setting this up.
As part of an estate plan: There can be significant tax advantages to donating retirement assets to MTFCA/the Museum as part of an estate plan. Retirement plan benefits are only payable to the employee or account holder who earned them (with a few exceptions). Unlike other inheritances that can be passed to heirs free of income tax, distributions from inherited retirement plans are taxable as ordinary income to the person who receives them.
This makes IRA’s the perfect gift for us! When you name a MTFCA/the Museum as a beneficiary to receive your IRA or other retirement assets upon your death, rather than donating retirement assets during your lifetime, the benefits multiply:
- Neither you, your heirs, nor your estate pay income taxes on the distribution of assets.
- Because charities do not pay income tax, the full amount of your gift will benefit the Museum.
- You have the opportunity to support a cause you care about – the Model T Museum.
When you’re ready, making a charity the beneficiary of your IRA or other retirement assets is pretty straightforward. Always ask your attorney, financial planner or CPA for advice when working on this part of your estate plan.
Information your estate planning team might need:
Our full legal name, address and phone number:
Model T Ford Club of America
310 North 8th Street
Richmond, IN 47374