Mr. and Mrs. Deitch, who are 57 and 64 years old, have $10,000 worth of stock that they bought in 1974 for $6,000. Although it has appreciated, the annual income from the stock is quite low. If they sell the stock, however, they will have to pay capital gains tax. Instead, they use the stock to make a gift to the Metropolitan Museum Pooled Income Fund and receive the following income and tax benefits: payments to both spouses and then to the survivor, for life, at about 3.7% for the first year (future income will vary with fund earnings), based on the full $10,000; and an immediate charitable deduction of about $3,888 on their federal income tax.
The example provided here is based on calculations as of July 2014 and is for illustration purposes only. The donors are composites and do not represent actual contributors to the Museum. Specific updated examples can be provided on request at no obligation.