What is a Vandercook?
A mid 20th century commercial proofing press used today by book artists for limited edition fine production work. These legacy presses are steadily increasing in value.

What is the Vandercook Society?
The Vandercook Society recognizes those who have chosen to support Minnesota Center for Book Arts through their wills, estate plans, or life income arrangements. Contributions received as a result of charitable planning help build for the future by supporting the programs and activities of Minnesota Center for Book Arts.

By joining the Vandercook Society, members will enjoy the satisfaction of knowing that their gifts will become a part of our community's artistic and cultural heritage.

Our Purpose:
• To recognize and honor the invaluable contributions of those who support us through bequests and life income arrangements of all sizes
• To continue to build our Capital Reserve Fund and any future endowments by encouraging more donors to remember Minnesota Center for Book Arts in their estate planning

Those who join the Vandercook Society have the opportunity to affirm their own values as well as to help set the future course of the organization.

How to Join the Society
You become a member of the Vandercook Society when you inform us that your will or life income arrangement mentions Minnesota Center for Book Arts. The amount need not be revealed, but if you choose to do so it will aid our long-range planning. It will also allow us to acknowledge your gift at its present value and credit you appropriately. To learn more, please contact Interim Executive Director Jeff Rathermel at 612 215 2520.

Benefits of Membership
• Lifetime recognition in the MCBA annual report
• Recognition in the MCBA lobby
• The knowledge that you are helping to secure the future of the book arts in our community

Below is some general information about estate planning vehicles that may not apply to all individuals. Prospective donors are urged to consult their personal tax and financial advisors to determine what vehicles are best for their specific situation, goals and values.

What is Planned Giving?
Planned Giving Options
Bequest Language
Planned Giving Frequently Asked Questions (FAQs)

What is Planned Giving?
"Planned giving" is a term commonly used to describe a wide variety of giving vehicles that allow you to give to an organization during your lifetime and/or after your death, while meeting your current income needs and providing for your heirs. Planned giving is typically done in conjunction with estate planning, and is a viable option for donors of all income levels.

From a donor's perspective, planned giving is attractive for many reasons. It may allow you to make larger gifts than you otherwise could out of your current assets. Depending on how a planned gift is set up, it may also let you receive a stream of income for life, earn higher investment yield, or reduce your capital gains or estate taxes. Planned gifts often appeal to people who want to benefit a charitable organization but aren't certain how much of their assets they'll need for themselves during their lifetimes.

Planned gifts can be used to benefit a specific nonprofit organization such as Minnesota Center for Book Arts, to establish a fund at a community foundation, to create a supporting organization, or to start a private foundation.

Planned Giving Options
The most common types of planned giving vehicles are gift annuities, charitable remainder trusts, charitable lead trusts, charitable bequests and beneficiary designations:

Charitable Bequests
The term "charitable bequest" is used to describe anything you give or leave to organization from your estate through a will or a revocable living trust. An "estate" is any property, money or personal belongings that you may have at the time of your death. Most people leave an estate when they die, even though they may not have a great deal of wealth. Even an individual with a small estate can arrange to leave a charitable bequest. Minnesota Center for Book Arts can provide you with bequest language (see below) that you and your attorney can use in planning your estate.

Gift Annuities
A charitable gift annuity provides you with lifetime income. To establish a gift annuity, you contribute funds or assets to a nonprofit organization, and that nonprofit in turn makes fixed annuity payments to you from its general assets for the rest of your life. You receive an immediate income tax deduction for a portion of the gift, and a portion of each annuity payment is treated as a tax-free return of the investment. The portion of the gift not used for payments benefits the nonprofit organization.

Charitable Remainder Trusts
A charitable remainder trust allows you and/or other designated beneficiaries to receive income from a trust for your lifetime(s), or for a period of years not to exceed 20. At the end of that time, the balance of the trust is transferred to an organization that you have selected. You can take a charitable deduction for a portion of the gift you make to the trust in the year the trust is formed. (In some cases, additional funds may be added in later years.) The two most common types of charitable remainder trusts are annuity trusts and unitrusts, which differ in how the income you receive from the trust is calculated and distributed.

Charitable Lead Trusts
A charitable lead trust allows you to designate an organization to receive a regular, fixed amount from a trust for a specified time period or the lifetime of a designated person. At the end of that time period, the remainder of the trust passes to your designated heirs or other non-charitable beneficiaries.

You can arrange to bequeath a gift from your estate in several different ways. You can set aside a specific dollar amount, leave a percentage of your estate, or leave any assets left over after your family has been provided for. Some people use a bequest to give an organization something they own, such as a car, home, art or jewelry. Others leave a paid life insurance policy or other financial investments, such as stocks, bonds or CDs. These gifts may provide tax savings. Consult a professional advisor for details.

Beneficiary Designation
By designating an organization as the beneficiary of your life insurance or retirement assets, you can enjoy some flexibility in your charitable giving as well as certain tax advantages. The designated organization will receive the specified assets upon your death, and you have the option of changing the eventual recipient throughout your life.

Bequest Language
The most useful bequest is an unrestricted bequest for the general purposes of Minnesota Center for Book Arts. This permits us to use your gift wherever it is most needed at the time. Suggested language for making an unrestricted bequest:

"I give, devise and bequeath [(describe dollar amount, property, or proportion of residuary estate)] to Minnesota Center for Book Arts, 1011 Washington Avenue South, Minneapolis, MN 55415 for its general corporate purposes.

Suggested language for a specific purpose:

"I give, devise and bequeath [(describe dollar amount, property, or proportion of residuary estate)] to Minnesota Center for Book Arts, 1011 Washington Avenue South, Minneapolis, MN 55415, to create an endowment from which only the income is to be used for the following purpose: [state the purpose]."

Important Note: If you do specify a use for your bequest, the following language will ensure that your gift will always remain productive: "If at any time in the judgment of the Trustees of Minnesota Center for Book Arts the designated use of this bequest is no longer practicable or appropriate, then the Trustees shall use the bequest to further the general purposes of Minnesota Center for Book Arts, giving consideration, where possible, to my special interest as described above."

Planned Giving Frequently Asked Questions (FAQs)

1. What assets can I use to make a gift to Minnesota Center for Book Arts?
Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).

Through your will or with a distribution from a retirement plan or life insurance policy, your gift can be designated to Minnesota Center for Book Arts in accordance with your wishes.

2. What sort of gift plans also return income to me?
You have the option of making a gift that returns income to you, your spouse, or other individuals, such as a charitable gift annuity, or charitable remainder unitrust or annuity trust.

3. What tax deduction will I receive for my gift?
Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, here are some guidelines:

• Outright gifts to MCBA generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains -- a great tax benefit!
• Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax.
• Similarly, life insurance distributions to MCBA are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 4 below).
• The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.

4. I want to set up a life insurance policy, name Minnesota Center for Book Arts as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a "completed gift" – they'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.


5. I've heard that transferring gifts of retirement-plan assets to charity is advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and estate taxes, at a combined rate that could rise to 75% or even higher on large taxable estates. The tax will be paid at some point—by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support MCBA.

6. Can I transfer my IRA to Minnesota Center for Book Arts to set up a life-income gift, and avoid income tax on the transfer?
New legislation gives donors aged 70 1⁄2 and older an opportunity to direct lifetime distributions from their IRAs to us without incurring income tax liability on the withdrawal. The provision will be in effect for just the 2006 and 2007 tax years. Distributions can total $100,000 per year, and must be made outright — they cannot fund a life-income gift. Just e-mail us and we'll be happy to give you more information about this new charitable incentive.

Donors younger than 70 1⁄2 can make a withdrawal from their IRA or other type of retirement plan, pay income tax on the withdrawal, and donate the proceeds to us. These gifts can be made outright or can fund a life-income gift and will generate a charitable deduction for the donor.

7. If I create a bequest or life-income gift, will you continue to ask me for annual contributions?
Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through annual gifts and we greatly appreciate and encourage any annual support you may want to consider.

To discuss your specific thoughts on planned giving to MCBA, please contact Executive Director Jeff Rathermel at 612 215 2520.