Give an Asset Instead of Cash

Using appreciated securities to make your gift can deliver more tax benefits to you than using cash.

Giving us appreciated assets may be more beneficial than continuing to maintain them.

Plan a Gift in Your Estate

With your bequest, you can perpetuate Washington National Opera’s dynamic performances and build the bridge from this generation of opera lovers to the next.

We offer a wise, charitable alternative to the double taxation awaiting your retirement plan in your estate.

You can turn surplus life insurance coverage into a charitable gift to Washington National Opera.

Partner With Us in Your Giving

You will receive stable lifetime payments that are taxed attractively when you create a charitable gift annuity.

You can receive income to help you meet many family obligations from the most flexible gift plan, a charitable remainder trust.

Increase your estate for your children while delivering years of income to Washington National Opera with a charitable lead trust.

Gifts of real estate may provide income. Also, real estate may be sold to the Opera at a charitable discount

A Gift of Appreciated Securities is for you if ...

• You're holding stocks, bonds, or mutual fund shares that have risen in value;

• You want to maximize your deduction but not affect your cash flow;

• You want to make an outright gift to us, or a gift that will first return lifetime payments to you

A $5,000 cash gift and a gift of $5,000 in Appreciated Securities both generate the same charitable deduction. But if you use publicly-traded stocks, bonds or mutual fund shares to make your gift, you will receive an additional tax benefit: the IRS allows you to make your transfer to Washington National Opera without recognizing capital gains on the appreciation. You can thus leverage a larger donation than you could make with cash -- and receive a larger tax deduction -- by "buying low and giving high."

Your gift of securities is valued as of the day the securities reach our account if your broker transfers them electronically, or as of the postmark date if you mail them. Your gift value is the average of the high and the low prices for the securities on that date (for mutual fund shares, it is the net asset value).

Washington National Opera
Vesna Gjaja, Director of Fundraising
2600 Virginia Avenue NW, Suite 301
Washington , DC 20037
202-295-2444 | Fax: 202-295-2479
Email: vgjaja@dc-opera.org

How it works

1. You transfer securities to the Opera.

2. The Opera sells your securities and uses the proceeds for its programs.

Benefits

A Bequest is for you if ...

• You want to ensure the Opera’s artistic excellence for future generations;
• Long-term planning is more important to you than an immediate income-tax deduction;
  
• You want the flexibility of a gift commitment that doesn't affect your current cash flow.

With a gift to Washington National Opera in your will or revocable trust, you can perpetuate the Opera’s dynamic performances and build the bridge from this generation of opera lovers to the next. A bequest:

• is easy to arrange,
• does not affect your assets or cash flow during your lifetime, and
• is revocable.

You may have planned your estate through a revocable trust instead of a will. A transfer to the Opera from your trust can bring you the same tax and planning benefits as a bequest from a will.

Your bequest or trust distribution to us will reduce the value of your estate for federal estate tax purposes, and will also be exempt from state inheritance taxes.

A bequest can designate a specific dollar amount or asset to the Opera, or a percentage of the balance remaining in your estate after taxes and specific bequests have been paid. It can also be payable if an individual beneficiary is not able to inherit.

You Can Make Your Bequest in Several Ways:

Specific Bequest

"I give and bequeath to Washington National Opera, a Washington, DC non-profit corporation, located on the date hereof, at 2600 Virginia Avenue, NW, Suite 301, Washington , DC 20037, for its general purposes the sum of Fifty Thousand ($50,000) Dollars [or: all my General Motors stock]"

How it works

1. You can provide now for a future gift to the Opera by including a bequest provision in your will or revocable trust.

2. Your will or trust directs assets to your heirs.

3. Your will or trust directs a bequest to the Opera for the purpose(s) you specify.

Benefits

• Your assets remain in your control during your lifetime.
  
• You can modify your bequest if your circumstances change.
• You can direct your bequest to a particular purpose (be sure to check with the Opera to make sure your gift can be used as intended).
  
• There is no upper limit on the estate tax deductions that can be taken for charitable bequests.
  
• You can have the satisfaction now of knowing that your bequest will support the Opera in the way you intended when you are gone.
  

A Gift from your Retirement Account is for you if ...

• You hold a 401(k), IRA, or other retirement plan;
• You prefer to make a gift to us through your estate plan;
• You want to balance your giving between providing for your family and for us;
• You want to ensure the most efficient distribution of the assets in your estate.

If you have a Retirement Plan -- your 401(k), IRA, Keough, or other such accounts -- you may be surprised to learn that the IRS will impose income tax on any balance that you direct through your will to a non-spouse beneficiary. This tax is in addition to the estate tax that will be imposed on the account. For estates fully subject to the estate tax, the result can be that 70 percent of the value of your retirement plan will be consumed in taxes before your child, relative or friend receives it.

There is a sensible charitable alternative: name Washington National Opera as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. The Opera is not required to pay income tax on our distribution, and your heirs will receive their share of your estate without the burden of extra taxes.

Retirement plans can also be used to fund a gift annuity during your life. Any lifetime distributions from a retirement plan are subject to income tax, even if you donate them to the Opera. However, your charitable deduction for this gift would partially offset those taxes.

Thoughtful gift planning ensures maximum benefits for you and for the Opera. For additional information on planning your gift please contact:

Washington National Opera
Vesna Gjaja, Director of Fundraising
2600 Virginia Avenue NW, Suite 301
Washington , DC 20037
202-295-2444 | Fax: 202-295-2479
Email: vgjaja@dc-opera.org

How it works

1. You name the Opera as the beneficiary of your IRA, 401(k) or other qualified plan.*

2. You name the Opera as the beneficiary of your IRA, 401(k) or other qualified plan.*

*Gifts of retirement plan assets during your lifetime are not recommended because they are subject to income tax. Legislation is pending that may change this.

Benefits

• You can escape both income AND estate tax levied on the residual left in your retirement account by leaving it to charity.
• You can continue to take withdrawals during your lifetime.
• You can change your beneficiary if your circumstances change.
• You can elect to leave retirement plan assets to the Opera through you will or revocable trust instead.
• You can have the satisfaction of knowing that your hard-earned retirement assets will support the Opera when you are gone.

A Gift of Life Insurance is for you if ...

• You are maintaining insurance coverage that your family no longer needs;
• You hold few appreciated securities in your portfolio, or few that you wish to donate;
• You are a younger donor who wants to create an endowment for us from income instead of capital.

You may want to consider the benefits of giving a life insurance policy to Washington National Opera.

If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a surplus, paid-up policy. Alternately, you could create a gift for the future by taking out a new policy on your life and naming the Opera as the owner and beneficiary.

You must name the Opera as irrevocable [you can't change the terms in the future] owner and beneficiary of an insurance policy to secure tax benefits from your gift. A gift of a paid-up policy produces a charitable deduction in the amount of the policy's cash surrender value or basis, whichever is less. With a gift of a new policy, the Opera will pay the premiums; gifts to offset those payments are deductible. Gifts of life insurance should be discussed with our staff in advance.

Thoughtful gift planning ensures maximum benefits for you and for the Opera. For additional information on planning your gift please contact:

Washington National Opera
Vesna Gjaja, Director of Fundraising
2600 Virginia Avenue NW, Suite 301
Washington , DC 20037
202-295-2444 | Fax: 202-295-2479
Email: vgjaja@dc-opera.org

How it works

1. You transfer ownership of a paid-up life insurance policy to the Opera.

2. The Opera elects to cash in the policy now or to keep the policy and receive the death benefit later.

Benefits

• You receive gift credit and an immediate income tax deduction for the cash surrender value of the policy (technically, the “interpolated terminal reserve value” of the policy).
• You can have the satisfaction of making a significant gift now to the Opera without adversely affecting your cash flow.

A Gift Annuity is for you if ...

• You want to make a significant gift to us and receive lifetime payments in return;
• You want to maximize the payments you receive from your planned gift -- and, you want to lower your income tax on those payments;
  
• You want the security of payments that won't fluctuate during your lifetime;
  
• You also appreciate the safety of your payments being a general financial obligation of the institution.

and a Deferred Gift Annuity is for you if ...

• You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire.

Immediate Payment and Deferred Payment

A Charitable Gift Annuity is a simple contract providing for our payment to you (and an optional second beneficiary) of a fixed amount for life in return for your contribution. The gift annuity offers you the assurance of payments that will not fluctuate and that are secured by all the assets of Washington National Opera. After lifetime of the annuitant(s), the remainder of the gift supports Washington National Opera. The minimum gift to establish a charitable gift annuity is $10,000, and the minimum age is 60 years. A gift annuity is easy to arrange through the Planned Giving Office, and there is no cost to set one up.

A charitable gift annuity offers you three distinct tax benefits:

1. You will receive an income tax charitable deduction for your gift annuity, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.

2. If you fund your charitable gift annuity with appreciated securities, no upfront capital gains tax is payable. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.

How it works

1. You transfer cash or securities to the Opera.

2.  The Opera pays you, or up to two annuitants you name, fixed income for life.

3. The principal passes to the Opera when the contract ends.

Benefits

• You receive an immediate income tax deduction for a portion of your gift.
• Your annuity payments are guaranteed for life, backed by a reserve and the assets of the Opera.
• Your annuity payments are treated as part ordinary income, part capital gains income (15%), and part tax-free income.
• You can have the satisfaction of making a significant gift that benefits you now and the Opera later.

A Charitable Remainder Trust is for you if ...

• You want to make a major gift to us while retaining or increasing your income;

• You hold securities, a business, or investment real estate, and want to avoid the capital gains cost of a sale;
• You desire maximum flexibility in the operation of your gift:
• You want income paid to your beneficiary for a term of years instead of her lifetime;
• You want to pay more than one beneficiary;
• You want the option of choosing the trustees of your gift plan.

A Unitrust pays beneficiaries variable income. Choose a unitrust if you want your income to be able to grow over time.

A Unitrust can hold assets that are appreciating but not yielding income. It's the right option if you want to invest your gift plan first for growth and then for income, or if you want to donate a valuable but temporarily illiquid asset.

An Annuity Trust pays beneficiaries fixed income. Choose an annuity trust if you value that stability, or if you want a larger charitable deduction than a unitrust would give you.

You can place tax-free bonds in an Annnuity Trust, receive a charitable deduction, then draw tax-free income through the trust.

If you are interested in maximum flexibility and effectiveness from your gift, consider a charitable remainder trust (CRT). These gifts can take two forms: Unitrusts and Annuity Trusts. In both forms, you irrevocably transfer assets to a trustee and receive an income tax deduction equivalent to the remainder value of the assets. The CRT pays income to a beneficiary (you or someone you designate) for a fixed term or for the lifetime of the beneficiary. At the end of this term, the assets in the CRT pass to the Opera. The forms differ in their payout structures:

• A unitrust pays you and/or other beneficiaries income as a fixed percentage of the principal. The unitrust is revalued annually, and income in excess of the percentage payout is reinvested.
• An annuity trust pays you and your beneficiaries a fixed payout from income or from principal when income is insufficient.

A unitrust may be structured to invest solely for growth for a term of years, an attractive way to help provide for future retirement, tuition needs or other capital while also making a substantial gift to Washington National Opera. An annuity trust may hold tax-free securities and pass tax-free income through to the beneficiaries.

You, your designees, or your financial institution may serve as trustee of a CRT. Washington National Opera is pleased to work closely with you and your advisors in arranging charitable trusts.

How it works

1.    You transfer cash, securities or other appreciated property into a trust.

2.    The trust makes fixed annual payments to you or to anyone you name.

3.    When the trust ends, the principal passes to the Opera.

Benefits

• You receive an immediate income tax deduction for a portion of your contribution to the trust.
• You pay no capital gains tax on any appreciated assets you donate.
• You or your designated income beneficiaries receive stable, predictable income for life or a term of years.
• You can have the satisfaction of making a significant gift that benefits you now and the Opera later.

How it works

1. You transfer cash, securities or other appreciated property into a trust.

2. The trust pays a percentage of the market value of the assets re-valued annually to you or to beneficiaries you name.

3. When the trust ends, the principal passes to the Opera.

Benefits

• You receive an immediate income tax deduction for a portion of your contribution to the trust.
• You pay no capital gains tax on appreciated assets you donate.
• You or your designated beneficiaries receive income for life or a term of years.
• You can make additional gifts to the trust as your circumstances allow, and qualify for additional tax deductions.
• You can have the satisfaction of making a significant gift that benefits you now and the Opera later.