Performances + Events Fund a Charitable Gift Annuity (CGA) with Long-Term Appreciated Property
A Tax-Smart Giving Strategy
Creating a Charitable Gift Annuity using long-term appreciated property — such as stocks, mutual funds, or real estate — can be an excellent way to support New England Conservatory while securing fixed payments for life. In addition to these benefits, this approach offers unique tax advantages that may reduce your capital gains tax burden.
What is a Charitable Gift Annuity?
A Charitable Gift Annuity is a simple contract between you and New England Conservatory. You donate long-term appreciated property, and in return, New England Conservatory agrees to make fixed payments to you for life. Your payment amount is determined by your age at the time of the gift and does not change over your lifetime, providing reliable income regardless of market fluctuations.
Why Fund a Charitable Gift Annuity with Long-Term Appreciated Property?
While you can use cash to fund a Charitable Gift Annuity, using long-term appreciated property can provide you with additional tax benefits. Here’s why it’s advantageous to consider funding a Charitable Gift Annuity with long-term appreciated property:
- Reduced Capital Gains Taxes: You recognize only a portion of your capital gain in the appreciated securities. What’s more, in most cases you can spread payment of the capital gains tax you do owe over many years. If you were to sell the appreciated securities yourself, you would owe capital gains taxes on all the appreciation in the year of sale.
- Income Tax Deduction: You are eligible for an income tax charitable deduction based on the fair market value of the property you give, subject to IRS limitations. This deduction can reduce your taxable income in the year of your gift. You may carry forward any unused deduction for up to five additional years.
- Lifetime Income: You receive fixed payments for life, based on the value of your gift and your age at the time of the gift. In addition, your payments are partially tax-free for many years. This stable payment stream can be particularly appealing if you are looking to supplement retirement income.
- Diversification: Donating appreciated securities to fund a CGA can serve as a diversification strategy, allowing you to reduce concentrated holdings in your investment portfolio without incurring immediate capital gains taxes.
- Charitable Impact: After the annuity payments conclude, the remaining funds support New England Conservatory’s mission, making a lasting impact.
Consult with Your Advisors
A Charitable Gift Annuity funded with appreciated property is a powerful way to secure fixed payments for life and tax benefits while supporting the values and work of New England Conservatory.
Before you fund a Charitable Gift Annuity, however, we encourage you to speak with your financial and tax advisors to evaluate how it fits within your overall financial plan.
If you would like to explore establishing a CGA with appreciated property or other assets, please contact us. We can provide you with information tailored to your needs, including the current annuity rates, potential tax benefits, and the long-term impact of your gift.
Thank you for considering a generous gift to help sustain New England Conservatory.
Additional Giving Options
By making a planned gift, you can strengthen NEC and gain financial and tax benefits for you and your family. For more information, please contact Aaron McGarry, Planned Giving Officer, by email or by phone at 617-585-1356.
Real estate can be contributed as an outright gift or to finance a planned gift. Available options include a retained life estate, which allows the donor to continue to use the property for a certain number of years, or for the donor’s lifetime. Other arrangements offer special tax advantages and lifetime income.
Gifts of real estate include undeveloped land, a residence, a vacation home, a farm, or commercial property. NEC requires the donor to bear certain costs when making a real estate gift, such as an appraisal to determine the fair market value. Also, NEC deducts transaction costs from the proceeds of the sale of the property, including the closing costs, title insurance, a survey (if needed), and any taxes due before the gift is completed.
For any questions about gifts of real estate, please contact Abigail Smitka, Assistant Vice President of Major Gifts and Campaigns, at as3628@necmusic.edu or (617) 585-1719.
Many companies support the philanthropic interests of their employees by matching employee contributions to nonprofit organizations like NEC. If your employer offers a matching gift program, you may be able to double or even triple your gift!
For more information on matching gift contributions, please contact Cheryl Fries, Assistant Director of Advancement Operations, at cheryl.fries@necmusic.edu or (617) 585-1373.
Gifts of personal property, such as musical instruments, recordings, and scores provide valuable support for our music education programs. Through the support of in-kind gifts, you can help NEC meet the college’s ongoing need to expand its inventory — and you qualify for a tax deduction.
NEC accepts in-kind donations on a case-by-case basis. For more information, please contact Patricia Kopko, Director of Advancement Operations, by email or phone at 617-585-1225
Friends of NEC may elect to make gifts to commemorate a loved one’s life, birthday, anniversary, or other special occasion. We will gladly notify those you wish to know of any gifts made in their honor.
Contributions in any amount may be directed to The NEC Fund, or to the area of your choice. Please note the name of the person you wish to commemorate when you make your gift.
Contact Us
To learn more about how you can support NEC, please contact Cheryl Fries, Assistant Director of Advancement Operations, at cheryl.fries@necmusic.edu or (617) 585-1373.
New England Conservatory is a 501(c)3 non-profit organization. All donations are tax deductible to the full extent of the law. Our non-profit tax ID is 23-7225104.
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