There are many ways to support Vermont College of Fine Arts with your charitable contributions. The information below will help you determine which option is right for you.
All gifts to VCFA are tax deductible to the extent allowed by law. Requests for anonymity will be honored.
Types of Gifts
- Check or Credit Card
- Sustaining Gifts
- Appreciated Securities
- Life Income Gifts
- Estate Gifts and Bequests
- Matching Gifts
- IRA Distribution
- Gifts of Property
Donations By Check Or Credit Card
Gifts of cash are the most common charitable contribution. A gift of cash is easy to do, and the gift is not subject to gift or estate taxation. Mail your check payable to: Vermont College of Fine Arts Office of Institutional Advancement 36 College Street Montpelier, VT 05602 Or pay online by credit card.
Our sustaining gifts program is a great way to help Vermont College of Fine Arts by providing consistent and reliable gifts through a monthly, quarterly or annual gift.
It's easy to enroll! Simply complete the Direct Payment Authorization Form and mail it to Vermont College of Fine Arts, 36 College Street, Montpelier, VT 05602
How It Works
- You determine the amount and frequency of your donation.
- We will charge your gift to your credit card at the predetermined interval (charges are made on or around the same date each period).
- We will send you an e-mail confirming the charge.
- An annual statement will be sent to you can be used for tax purposes.
- Your gift will automatically renew each year.
The Benefits Add Up!
- It’s easier to budget and easier on your wallet.
- You have control over your giving.
- Your gift renews automatically.
- It's paperless, so it's environmentally responsible.
Transfer of Appreciated Securities to VCFA
The transfer of appreciated securities to VCFA is a wonderful way to expand the amount you can afford to donate while providing tax-saving advantages. You get a tax deduction for the gift, and you avoid paying any capital gains tax on the increase in value of the stock. When you donate securities, you can deduct the "fair market value," which is the average of the highest and lowest trading price on the day you make the transfer.
Here is an example: You purchased 10 shares of stock ten years ago for only $500. Today, that same stock is worth $10,000. An outright gift of the stock to VCFA would result in a charitable contribution deduction of $10,000. There is no tax on the $9,500 appreciated value.
The tax deduction for appreciated securities owned for less than one year is limited to your cost basis or the stock’s fair market value, whichever is less.
We recommend the completion of a stock power form. In many cases you will be required to have your signature guaranteed by a medallion signature guarantee. This can be obtained at a commercial bank or trust company having a New York correspondent. Most major banks will provide this service. Notarization is not sufficient.
Ask your broker for assistance if your shares are held in a brokerage account. Process Instructions:
1. Notify VCFA:
Contact Alissa Auerbach (802) 828-8555 Vermont College of Fine Arts 36 College Street Montpelier, VT 05602
2. Work with your Broker
Please provide the following VCFA brokerage account information to your broker:
- DTC number 0443
- Account number 5CT-028678
- Account held at Pershing Brokerage (affiliate)
Joseph P. Preddy will work with your broker to answer transfer questions. His contact information is: (802) 479-0645 or toll free (877) 334-1677; fax 802-479-0562 firstname.lastname@example.org.
The date of the gift is the date of receipt into the VCFA account. The valuation of the gift is the reported high and low on the date of the gift. Vermont College of Fine Arts is responsible for notifying the donor of the transaction.
Life Income Gifts
Charitable remainder trust: If you can benefit from the income generated by the property, a charitable remainder trust may provide a good solution. The property is irrevocably transferred into a trust which pays income to you for life or a term of years. After that, the remaining principal goes to support VCFA. Additional benefits include a substantial income tax deduction in the year the trust is established and no capital gains tax at the time of the gift.
A charitable gift annuity can be established with the transfer of cash or property in exchange for fixed annuity payments to one or two life annuitants. This option is an attractive way to make a gift and retain a fixed income for the life of the beneficiary. Rates vary depending on the age of the beneficiary. A charitable gift annuity is considered a general obligation of the issuing charitable organization. Charitable gift annuities, therefore, take on much of same characteristics as commercial annuities with the issuing charity acting as the insurer. VCFA has partnered with the Vermont Community Foundation to offer charitable gift annuities which are backed by all the assets of the Foundation, currently in excess of $150,000,000.
Charitable Remainder Trusts
These larger, separately managed trusts pay either fixed income or a percentage of the market value of the trust, which is valued annually. They may run for a lifetime or for a term of years.
Charitable Lead Trusts - Charitable lead trusts differ from charitable remainder trusts in that payments are made to VCFA for a specified period of time. At the end of this period, the assets are transferred back to you or your named beneficiary.
Gift of Life Tenancy - You may make a gift of a personal residence, second home, or farm to VCFA while retaining the right to occupy the premises during your lifetime. Your spouse can retain the same right. A gift of life tenancy allows you to claim an immediate income tax deduction for a portion of the appraised value of the property.
Estate Gifts & Bequests
Bequests & Testamentary Gifts
For some donors, a bequest is an easy way to make a significant gift. Typically, a bequest to VCFA is listed as a provision in your will, stipulating the transfer of funds after your death. You may designate a dollar amount, a percentage of your estate, or name VCFA as the final gift recipient after all other bequests have been paid.
Types Of Bequests:
Unrestricted bequests - Funds which VCFA uses for its general purposes. This type of bequest is extremely useful because the assets can be put to use in areas of greatest need.
Restricted bequests - Allows VCFA to use the gift only in a specified manner. The gift may be added to VCFA’s permanent endowment, with only the income to be spent (according to board approved spending policies). Or, the gift may be earmarked for a special area of interest. It is preferable to have restricted bequests defined as broadly as possible. By avoiding narrowly restricted bequests, both you and VCFA are assured that the gift's effectiveness will not be reduced because of changing circumstances.
Both restricted and unrestricted bequests may be made in the following ways:
Specific Bequest - gives a specific asset or collection of assets - such as cash, securities, or other designated property. Residuary Bequest - gives all or a percentage of what remains in your estate after all specific bequests have been satisfied and debts and expenses have been paid.
Contingent Bequest - gives all or a portion of your estate to VCFA when a named individual beneficiary dies before you do. For example, "I give $10,000 to my cousin, Bill, but if he does not survive me, the bequest goes to VCFA."
Testamentary Charitable Remainder Trust - provides that all or part of your estate is left in trust, with the income paid to one or more surviving relatives or friends for their lifetimes (or for a specified number of years). After the last income beneficiary dies, or after the specified number of years expires, the trust assets are transferred to VCFA and/or other charities that you designate.
A codicil is simply an amendment to an existing will. If you already have a will, you can add a new gift, change a provision, or delete a gift by making a codicil. Please note, however, that making a codicil requires consulting your attorney, who will review your entire estate plan to make sure that the codicil enables you to achieve your wishes, goals and objectives. Please be sure to consult your attorney when you consider making a will or codicil. It is important that you and your attorney feel confident that the overall estate plan is the best one possible for you and your family, and that the will carries out your plan.
You may also irrevocably transfer the ownership and delivery of a life insurance policy to VCFA. The principle of giving life insurance is that a relatively small present gift will ultimately provide a much larger gift in the future. You will be entitled to a tax deduction based on whether the policy is paid in full, or if premiums are still due. In the latter case, the deduction is equal to the cost basis, or (approximately) the cash surrender value -- whichever is less. If the policy is paid in full, the charitable deduction is equal to the cost of a new replacement policy with the same terms.
Retirement Savings Gifts
You may designate VCFA as a death beneficiary for your individual retirement accounts (IRAs) and assets held in accounts under 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans. This option may save you and your heirs both income and estate taxes.
Help your gift go further by having your employer match your gift to Vermont College of Fine Arts. Many companies match charitable gifts made by their employees, doubling or even tripling the value of your donation. Some companies even match gifts made by employees' spouses or retirees.
How Does It Work? Request a matching gift form from your employer, complete it, and send it along with your gift to: Vermont College of Fine Arts Office of Institutional Advancement 36 College Street Montpelier, VT 05602 If you make your gift online, your form can be e-mailed to: Alissa.Auerbach@vcfa.edu
The Tax Relief Act restored the IRA Charitable Rollover for 2010 and permits its use in all of 2011. If you own an IRA and are over age 70½, you may transfer up to $100,000 directly from your IRA to Vermont College of Fine Arts without claiming the income; however, you cannot claim the deduction, either. Conversely, you can claim the charitable deduction if you claim the IRA distribution as income. We recommend that you contact your IRA Custodian and your financial advisor for more information regarding your specific details on this tax wise way to make charitable gifts.
Gifts of Property
There are two major forms of property:
1. Personal Property - Many people have tangible personal property of some value, and often would like to donate it: works of art, antiques, jewelry, rare books, or other collections (such as coins or cars, for example). VCFA may be an excellent recipient of your gift of personal property. We ask that you contact us to discuss this before making the donation, to be certain we can accept your gift. You will be responsible for an outside appraisal of any property valued over $5000.
2. Real Property/Estate - Donating marketable real estate such as a personal residence or vacation home, commercial property, or even vacant land, can be a creative way to make a significant gift to VCFA and at the same time realize important tax benefits and even income.
A gift of real estate can also relieve you of the burden of managing or selling the property. Your benefits from an outright gift of real estate include an income tax deduction for the property's full fair market value and removal of the property from your estate. VCFA may be an excellent recipient of your gift of real estate property. We ask that you contact us to discuss this before making the donation, to be certain we can accept your gift. You will be responsible for an outside appraisal of any property valued over $5000. Depending on your circumstances and anticipated future needs, you can donate real estate using any one of a variety of mechanisms:
* Partial interest gift: If you are unable to donate the entire property, you may deed an undivided partial interest to VCFA, or a charitable remainder trust may be funded with such a partial interest. In both instances it is likely that the entire property will be sold, with the proceeds being shared proportionally between you (or your trust) and VCFA. Your charitable deduction for the gift portion may help offset the capital gains tax on your retained portion.
* Retained life estate: You can give VCFA your personal residence, and still retain the right to live in it for your lifetime. A retained life estate will enable you to take an income tax deduction in the year you make the gift. VCFA would work with you and your advisor to establish arrangements for this plan.
Director of Development
Vermont College of Fine Arts is a non-profit institution and all donations are tax-deductible to the extent allowed by the law. Legal Name and Tax Identification Number: Vermont College of Fine Arts 20-8384273