Planned Giving

Planned Gifts
Charitable Remainder Trusts
Pooled Income

Giving Opportunities

Opportunities to support San Diego History Center offer potential tax advantages to the donor. Planned gifts provide deferred but irrevocable benefits to the SDHC.

Gifts of Cash

Gifts of cash are fully deductible up to 50% of your adjusted gross income. Any excess can generally be carried forward and deducted over as many as five subsequent years.

Gifts in Kind

The History Center welcomes gifts in kind of supplies, equipment and other materials to aid our work in preserving San Diego history. We accept donations of artifacts, images, books, art and clothing pertinent to San Diego.

Gifts of Securities

If you own securities, particularly traded stock, it is often more advantageous to contribute the stock than cash. A gift of appreciated stock generally offers a two-fold tax saving. First, you avoid paying capital gain tax on any increase in the value of the stock. Secondly, you receive an income tax deduction for the full market value of the stock at the time of the gift. For instance, if you purchased stock several years ago for only $1,000, and it is now worth $10,000, an outright gift of the stock to the History Center would result in a charitable contribution of $10,000 and there would be no tax on the $9,000 appreciated value.

Gifts of Real Estate

A residence, vacation home, farm, acreage, or vacant lot may have so appreciated in value through the years that its sale would mean a sizeable capital gains tax. By making a gift of this property instead, you would avoid the capital gains tax, and receive a charitable deduction for the full fair market value of the property.

Planned Gifts

Charitable Remainder Trust

Suitable for planning for significant assets, remainder trusts offer a variety options to satisfy the objectives of the owner. The trust which is irrevocable, qualifies the trustor for an income tax deduction. It then normally pays income to a designated beneficiary for life or a specified period of time at the conclusion of which, the corpus distributes to the History Center.

Pooled Income Fund

Available for gifts of cash or taxable securities in amounts starting at $10,000. The donor receives an income tax deduction while avoiding tax on any gain that may be in the gifted assets. The donor or other designated income beneficiaries receive income for life with the corpus of the gift ultimately distributing to the History Center.

Gifts of Life Insurance

A gift of life insurance can result in a charitable deduction for the donor. You could purchase and donate a new policy or donate a policy you currently own but no longer need. To qualify for a deduction, the History Center is designated as both owner and beneficiary of the policy.

Bequest by Will or Living Trust

Whether for an entire estate or any portion thereof, a fixed amount or a percent of total assets, distribution to the History Center can be directed by terms of a will or a living trust. Such distribution may well reduce estate tax liability.

Reserved Life Estate

By contributing your home or vacation home to the History Center now, while reserving the exclusive right to its use for the rest of your life, you qualify for a current income deduction based on the value of the property, your age and other factors. Also, the property would subject to estate tax at the time of death. Example: You own a vacation home which you would like to continue to use. Its fair market value is $100,000. By contributing the property now to the History Center, while retaining a life estate, you would receive a current income tax contribution on the order of $25,000. (The precise amount would be calculated on the basis of your age, the useful life of the house and other factors.)

Charitable Remainder Trusts

Versatile Win/Win arrangements

Benefits include a current year income tax deduction, increased income without realization of capital gain, estate tax savings, and eventual transfer to the History Center to help it carry out its mission of preserving and sharing its growing historical collections and extensive archives with members, visitors and the community.

A charitable remainder trust can provide all these benefits, offering greater flexibility for the donor -- typically an individual or a husband and wife. In addition to cash or securities, other property -- most significantly real estate -- can be transferred to the trust. The donor can select a corporate trustee to invest and administer the trust assets or can act as trustee himself or herself, if that seems desirable. With many possible income pay-out arrangements, a charitable remainder trust can be tailored to suit the donor's objectives, whether they be to build a retirement account, generate higher income from currently owned assets or provide for a surviving spouse or children.

There are two basic types of charitable remainder trusts: the annuity trust and the unitrust. Under a charitable remainder annuity trust, the donor or the designated beneficiary receives a fixed amount, at least annually, for life or for a fixed term (not exceeding 20 years). A charitable remainder unitrust pays a set percentage of the trust assets, as revalued each year, thus providing a hedge against inflation. Variations in the basic unitrust include net income (provided it does not exceed the set percentage) and the so-called FLIP unitrust (which permits starting as a net income trust and changing to a basic unitrust upon the occurrence of a specified event, such as retirement or death of the donor).

Say you own land that has appreciated in value but produces no income, here's how a charitable remainder trust might work for you. You transfer the land to the trust, which provides that you will be paid 8% of the value of the trust assets for life. In the year of the transfer, you receive a charitable income tax deduction, the amount of which depends upon the value of the land, the percentage selected and your age. The trustee can sell the land without liability for tax on the capital gain and invest the net proceeds for total return. Each year the trust assets will be revalued, and you will receive 8% of that value. Upon your death, the trustee will transfer the trust assets to the San Diego History Center, and the value of the assets will not be subject to estate taxes.

If you would like to learn more about charitable remainder trusts, call (619) 232-6203, ext. 101 or development@sandiegohistory.org

Pooled Income

A Well-kept Secret Revealed

Although the San Diego History Center established the Pooled Income Fund several years ago, the usefulness of the Fund as a financial and estate planning tool for individuals and its importance in furthering the long term stability of the History Center has not been widely recognized.

To determine whether a gift to the Fund would assist you in reaching your goals, ask yourself the following questions

  • Do you view the History Center as an important cultural and educational institution in our community?
  • Would you like to help the History Center carry out its mission, which includes preserving and sharing our historical collections, and archives and helping all generations understand and appreciate the richness of the history of the San Diego region?
  • Do you own any tradable securities, which though highly appreciated in value, produce little dividend income?
  • Would you like to increase the income from those securities without realizing the capital gain tax which would likely result from their sale?
  • If your answers to these questions are "YES", a gift to the History Center's Pooled Income Fund may be an attractive option for you.

Consequences of a gift of securities to the pooled income fund

  • The donor receives a current year income tax deduction, which is calculated with the age or ages of the named income beneficiaries, the income history of the Fund and the market value of the securities on the date of the gift as factors.
  • The gifted securities are sold by the trustee without tax consequences for the donor. The proceeds are used to purchase shares of the income-producing Fund.
  • The income produced by those shares of the Fund is paid quarterly to the donor or to other designated income beneficiaries.
  • Upon the death of the donor, or that of a surviving income beneficiary, shares of the Fund, representing the original gift, are withdrawn from the Fund and distributed to the History Center without being included in the donor's taxable estate.

An example of a gift to the History Center's Pooled Income Fund

A husband and wife, ages 72 and 70 respectively, own shares of a common stock with a market value of $15,000. Its cost basis is $5,000. The annual dividend is $150, just 1% of market value. By donating this stock to the San Diego History Center Pooled Income Fund, the husband and wife achieve the following:

  • Receive a current year income tax deduction of about $5,000.
  • Establish a lifetime income stream, currently 7.60% of the value of the gift, thus increasing annual income from $150 to $1,140.
  • Remove the stock from their taxable estate for estate tax purposes.

Experience the satisfaction and pleasure of supporting and helping to perpetuate the San Diego History Center as one of the premier cultural institutions of our community.

For further information on making a gift to the San Diego History Center Pooled Income Fund, please call (619) 232-6203, extension 101 or development@sandiegohistory.org