There are many forms of planned gifts, each of which offer a variety of benefits to you as well as to the Cleveland Institute of Music. Planned gifts are an important source of funds which support not only our students, but also our programs and facilities. For you, the donor, it permits you to define your legacy and leave a lasting gift to CIM and its students. Through a planned gift, you can secure income for yourself or a family member with a charitable gift annuity, establish an endowment or make a bequest from your estate, in each instance helping to secure the future of CIM.
Whatever form you choose for your planned gift, the CIM Development Office can help. Our officers are ready to meet with you or your advisors to discuss your philanthropic goals and to determine which planned gift to CIM best suits your goals. If you already know which form of planned gift you would like to make, you may complete and return to CIM the simple, one page Declaration of Intent form.
One of the easiest and most flexible gifts you can make to CIM is a bequest. Your bequest can take several forms including:
- Providing specific language in your will or trust designating CIM as beneficiary of a gift;
- Designating CIM as the beneficiary of all or part of your life insurance polic(ies); and/or
- Designating CIM as a beneficiary of all or a part of your retirement account(s).
As a bequest can be made in many different ways, you and your advisor can determine the type that is best suited for you. Your bequest can constitute a percentage of your entire estate, can be a specific amount or a specific asset, or can constitute the balance or residue of your estate. In each instance, you will receive an estate tax deduction while leaving a lasting legacy to CIM.
A charitable gift annuity (CGA) is a contract between you and CIM. In exchange for an irrevocable transfer of assets, CIM will pay you, or one or more beneficiaries, a fixed income for life. You may choose to fund your CGA with cash or with appreciated securities.
The creation of a CGA will provide you with many benefits including:
- You, or one or more of your designated beneficiaries will receive a fixed income for life;
- Depending on your age, the fixed income amount you will receive can be quite significant;
- You will receive a charitable deduction for the gift of the remainder amount of the CGA that will go to CIM;
- If you fund your CGA with cash, a significant portion of your fixed income payment will be tax free; and
- If you fund your CGA with appreciated stock, you will avoid a portion of the capital gains tax.
You may also choose whether to have a current CGA or a deferred CGA. If you are 60 years or older and would like to start receiving your income stream right away, we can provide you with a current CGA. If, however, you are not ready to begin receiving your income stream until a future date, such as on or after your retirement, we can begin your payments later. Because you have deferred the payments, each will be larger than with a current CGA.
A Charitable Remainder Trust (CRT) is a trust you create to provide income for yourself or other beneficiaries while making a generous gift to CIM. You may fund the CRT with either appreciated assets or cash. If you donate appreciated assets to the CRT, the trustee will be able to sell the appreciated assets tax free, saving you considerable capital gains taxes. CIM benefits from what remains in the CRT after all of the trust payments have been made.
A CRT can provide you with many benefits including:
- Avoiding capital gains on the sale of appreciated assets;
- Receiving an income tax deduction in the year you transfer the assets to the CRT;
- You, or other trust beneficiaries, receive income from the CRT for a term of up to 20 years or a life plus a term of up to 20 years; and
- CIM receives the amount that remains in the trust after the payments have been made.
CIM’s Development Department is available to work with you and your advisors to discuss the creation of a CRT and to determine if this is the best vehicle for you to meet your philanthropic goals.
If you are 70 ½ or older, you can make gifts directly from your IRA to CIM. By making a gift in this way, you lower the income and taxes on your IRA withdrawals while helping CIM pursue its mission to educate the complete musician of the 21st century. You work directly with the plan administrator of your IRA and the funds are directly transferred to CIM. You will not receive a charitable deduction for the gift, however, you will receive other benefits including:
- Avoiding taxes on transfers of up to $100,000 from you IRA to CIM;
- Satisfying your required minimum IRA distribution each year; and
- Your gift will not be subject to the 50% deduction limits on charitable gifts.
The CIM Legacy Society was created in 1999 to recognize individuals who have helped to ensure the future of CIM through planned gifts. Currently there are 342 members of the CIM Legacy Society.
Donors who made planned gifts played a vital role in the Campaign for CIM, the successful capital campaign which was completed in 2007. The $42 million raised through the campaign included 27 planned gifts at a value of nearly $6 million. Legacy Society members have also been critical in ensuring that gifted students are able to attend CIM through the creation of numerous endowed scholarships.
The many benefits of your membership in the CIM Legacy Society include:
- You will receive an invitation to the annual Legacy Luncheon at CIM where Legacy Society members enjoy lunch on the stage of Kulas Hall and listen to performances by outstanding CIM students;
- Your name may be listed on the Legacy Society Wall in the Maltz Lobby of the Lennon Education Building at CIM;
- You will receive recognition as a member of the CIM Legacy Society in each annual report of the Cleveland Institute of Music.
- You will receive reserved seating at performances of the CIM Orchestra in Severance Hall; and
- In appreciation of your generosity and commitment to the long term excellence of CIM, you will receive personal assistance with your charitable and estate planning questions from the CIM Development Office.