IRA CHARITABLE ROLLOVER

If you are 70½ or older, you can make a significant impact on Capital Stage through an IRA Charitable Rollover, also known as a Qualified Charitable Distribution (QCD).

Key Benefits:

• Donate up to $100,000 annually directly from your IRA to qualified charities like ours
• Satisfy your Required Minimum Distribution (RMD) without increasing your taxable income
• Support our mission to enrich the community through arts and culture

Important Details:

• Eligibility begins at age 70½
• Contributions must come directly from your IRA custodian to Capital Stage
• Gifts can be made up to $100,000 per year
• Donations count toward your Required Minimum Distribution (RMD)
• The gift is not considered taxable income for you
• While you cannot claim a charitable deduction, you avoid the income tax on those funds

How to Make Your Gift:

1. Contact your IRA administrator to initiate the transfer
2. Inform us of your plans so we can ensure proper processing and acknowledgment
3. Consult with your tax advisor to confirm your specific tax implications

Additional Considerations:

• The provision applies to Traditional and Roth IRAs
• Gifts must be outright; they cannot be used to fund life-income gifts
• Transfers must be made directly from the IRA to Capital Stage

We’re here to help! If you have any questions or need assistance, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your financial advisor or tax professional to understand how this gift may impact your specific financial situation.

CHARITABLE LEAD TRUST

Protect Your Assets

You can benefit from the tax savings that result from supporting Capital Stage without giving up the assets that you’d like your family to receive someday with a donation in the form of a charitable lead trust.

There are two ways that charitable lead trusts make payments to Capital Stage:

• A charitable lead annuity trust pays a fixed amount each year to Capital Stage and is more attractive when interest rates are low.

• A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, for example, the payments to Capital Stage go up as well.

An Example of How It Works

Jerry would like to support Capital Stage and receive tax benefits. Jerry received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, Jerry funds a grantor charitable lead annuity trust with assets valued at $1,000,000. Jerry’s trust pays $60,000 (6% of the initial fair market value) to Capital Stage each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to Jerry. He receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, Jerry receives approximately $1,600,286 at the end of the trust term.

Example for illustration purposes only. Deductions and calculations will vary depending on your personal circumstances.

We’re here to help! If you have any questions about giving options, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.

CHARITABLE REMAINDER TRUST

Solutions for Large Donations

If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust.

These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:

• The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

• The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

An Example of How It Works

Nancy, 75, wants to make a gift to Capital Stage but would also like more income in the future. Nancy creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Nancy receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360 in the year she creates and funds the trust. This deduction saves Nancy $92,915 in her 32% tax bracket.

Example for illustration purposes only. Deductions and calculations will vary depending on your personal circumstances.

We’re here to help! If you have any questions about giving options, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.

DONOR ADVISED FUNDS

Harness the Giving Power of a Private Foundation

A donor advised fund (DAF), which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to Capital Stage and other qualified charities. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts.

You can also create a lasting legacy by naming Capital Stage the beneficiary of the entire account or a percentage of the fund. With a percentage, you can create a family legacy of giving by naming your loved ones as your successor to continue recommending grants to charitable organizations. Contact your fund administrator for a beneficiary form.

An Example of How It Works

Fred and Julie want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with a community foundation.

The couple receives a federal income tax charitable deduction for the amount of the gift. They also get all the time they need to decide which charities to support.

After researching community needs with the foundation’s staff, Fred and Julie recommend grants for Capital Stage (which they’ve supported for years) and the River City Food Bank. The foundation presents the charities with checks from the Sally Fund, which Fred and Julie named in honor of their granddaughter. Fred and Julie are delighted to start this personal legacy of giving.

Example for illustration purposes only. Deductions and calculations will vary depending on your personal circumstances.

We’re here to help! If you have any questions about giving options, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.

BEQUESTS

What is a Bequest?

• A bequest is a gift made through your will or trust that allows you to retain full control of your assets during your lifetime while leaving a lasting impact on Capital Stage after your passing.

Benefits of Making a Bequest:

• Create a Lasting Legacy: Your gift ensures your values and passion for the arts continue to make a difference for generations to come.
• Reduce Tax Burden: Bequests may lessen the tax burden on your family and estate.
• Potential Estate Tax Savings: Your estate may benefit from tax deductions related to your charitable giving.

How to Make a Bequest:

Making a bequest is one of the simplest ways to leave a legacy. Here’s how:

• Consult with an estate planning attorney or financial advisor.
• Include language in your will or trust specifying a gift to the Capital Stage.
• Inform us of your plans so we can ensure your wishes are carried out effectively.
• View Sample Bequest Language

Bequest Options:

You have several options when making a bequest:

• Specific Bequest: Gift a specific dollar amount or asset.
• Percentage Bequest: Gift a percentage of your total estate.
• Residuary Bequest: Gift from the balance or residue of your estate after other bequests have been made.
• Contingent Bequest: Gift that takes effect only if certain conditions are met.
• Beneficiary Designation: Name Capital Stage as a beneficiary of certain assets, such as retirement plans or life insurance policies.

Steps to Get Started:

• Consider what you’d like your legacy to be.
• Decide what assets you’d like to give and how you’d like to structure your bequest.
• Consult with your attorney or financial advisor to update or create your will or trust.
• Contact us to discuss your plans or any questions you may have.

We’re here to help! If you have any questions about giving options, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.

LIFE INSURANCE GIFTS

A gift of life insurance can provide crucial financial support to the Capital Stage. This option may be particularly attractive if your other assets have grown or your dependents’ needs have decreased, reducing the importance of your life insurance policy to you personally.

Ways to Give Life Insurance:

1. Designate Capital Stage as a Beneficiary
   • Name Capital Stage as a beneficiary of an existing policy
   • Your estate may receive an estate tax deduction for proceeds paid to Capital Stage
2. Give an Existing Policy
   • Make Capital Stage the owner and irrevocable beneficiary of your policy
   • Receive a federal income tax deduction for your gift
   • Deduction amount varies based on policy status:
     • Paid-up policy: Deduction equals replacement value
     • Outstanding premiums: Deduction approximately equals cash surrender value
   • New policy purchases gifted to Capital Stage: Deduction is for premium payments made
   • Irrevocable gifts may remove the policy’s value from your estate, potentially reducing estate taxes

Retirement Plan Gifts

Naming Capital Stage as a beneficiary of your qualified retirement plan can be an effective way to support our mission while potentially providing tax benefits to your estate.

Eligible Plans:

• Profit-sharing plans
• 401(k) plans
• IRAs
• Other qualified retirement plans

Benefits of Gifting Retirement Plan Assets:

1. Tax Efficiency: Transferring retirement plan assets to non-spouse individuals may trigger both estate and income taxes, potentially consuming up to 70% of the assets.
2. Estate Planning Strategy: Consider leaving other assets (cash, stock, real estate) to family members while gifting retirement plan assets to Capital Stage. This approach can provide a significant gift to Capital Stage at minimal cost to your heirs.

How to Make a Retirement Plan Gift:

1. Contact your plan administrator for the appropriate beneficiary designation form.
2. Name Capital Stage as a full or partial beneficiary of your plan.
3. Inform us of your plans so we can ensure proper processing and acknowledgment.

Important Considerations:

• Always consult with your financial advisor, tax professional, or estate planning attorney to understand how these gifts may impact your specific financial and estate planning situation.
• Gifts of retirement plan assets can be combined with other planned giving methods for maximum impact and potential tax benefits.

We’re here to help! If you have any questions about giving options, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.

TYPES OF BEQUESTS

An excellent way for you to support Capital Stage’s mission is to leave us a bequest in your will, living trust or with a codicil. One significant benefit of making a gift by bequest is that it allows you to continue to use the property you will leave to charity during your life. Another benefit is that you are able to leave a lasting legacy.

There are a number of ways you can make a bequest to Capital Stage:

• Specific Bequest. A specific bequest involves making a gift of a specific asset such as real estate, a car, other property or a gift for a specific dollar amount. For example, you may wish to leave your home or $10,000 to Capital Stage.

• Percentage Bequest. Another kind of specific bequest involves leaving a specific percentage of your overall estate to charity. For example, you may wish to leave 10% of your estate to Capital Stage.

• Residual Bequest. A residual bequest is made from the balance of an estate after the will or trust has given away each of the specific bequests. A common residual bequest involves leaving a percentage of the residue of the estate to charity. For example, you may wish to leave 30% of the residue of your estate to Capital Stage.

• Contingent Bequest. A contingent bequest is made to charity only if the purpose of the primary bequest cannot be met. For example, you could leave specific property, such as a vacation home, to a relative, but the bequest language could provide that if the relative is not alive at the time of your death, the vacation home will go to Capital Stage.

Bequest Benefits

A bequest is generally a revocable gift, which means it can be changed or modified at any time. You can choose to designate that a bequest be used for a general or specific purpose so you have the peace of mind knowing that your gift will be used as intended. Bequests are exempt from federal estate taxes. If you have a taxable estate, the estate tax charitable deduction may offset or eliminate estate taxes, resulting in a larger inheritance for your heirs.

Bequest Language

In order to make a bequest, you should speak with your attorney. Your attorney can help you include a bequest to Capital Stage in your estate plan. We have provided some basic bequest language to assist you and your attorney.

1. Specific Bequest

If you are considering making an outright bequest to Capital Stage, we recommend the following language:

Bequest of a Specific Dollar Amount

I hereby give, devise and bequeath _________ and No/100 dollars ($DOLLARS) to Capital Stage, a nonprofit organization located at 2215 J St., Sacramento, CA 95816, Federal Tax ID #20-2799021, for Capital Stage’s general use and purpose.

Bequest of Specific Personal Property

I hereby give, devise and bequeath DESCRIPTION OF PROPERTY to Capital Stage, a nonprofit organization located at 2215 J St., Sacramento, CA 95816, Federal Tax ID #20-2799021, for Capital Stage’s general use and purpose.

Bequest of Specific Real Estate

I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to Capital Stage, a nonprofit organization located at 2215 J St., Sacramento, CA 95816, Federal Tax ID #20-2799021, for Capital Stage’s general use and purpose.

2. Percentage Bequest

If you are considering making a bequest of a percentage of your estate to Capital Stage, we recommend the following language:

I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to Capital Stage, a nonprofit organization located at 2215 J St., Sacramento, CA 95816, Federal Tax ID #20-2799021, for Capital Stage’s general use and purpose.

3. Residual Bequest

I hereby give, devise and bequeath to Capital Stage, a nonprofit organization located at 2215 J St., Sacramento, CA 95816, Federal Tax ID #20-2799021, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate to be used for Capital Stage’s general use and purpose.

4. Contingent Bequest

If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to Capital Stage, a nonprofit organization located at 2215 J St., Sacramento, CA 95816, Federal Tax ID #20-2799021, for Capital Stage’s general use and purpose, DESCRIPTION OF PROPERTY to be used for Capital Stage’s general use and purpose.

Restricted Bequests

If you are considering a bequest but would like to ensure that your bequest will be used for a specific purpose, please let us know. We would be happy to work with you and your attorney to help you identify ways to give and meet your charitable objectives. We will also work with you and your attorney to craft language to accomplish your goals.

If you are making a restricted bequest, we recommend that your attorney include the following provision to give Capital Stage flexibility should it no longer be possible for Capital Stage to use your gift as you originally intended:

If, in the judgment of the Board of Directors of Capital Stage, it shall become impossible for Capital Stage to use this bequest to accomplish the specific purposes of this bequest, Capital Stage may use the income and principal of this gift for such purpose or purposes as the Board determines is most closely related to the restricted purpose of my bequest.

If you have included a bequest for Capital Stage in your estate plan, please contact us to let us know. We would like to thank you and recognize you for your gift.

We’re here to help! If you have any questions about giving options, please contact our Development Manager, Kirk Blackinton at kblackinton@capstage.org.

Remember: Always consult with your legal and financial advisors to understand how a bequest may impact your specific estate planning situation.

FREE ESTATE PLANNING SEMINAR

Wednesday, Oct. 29 2025 | 10:30 AM – 12:00 PM
Capital Stage, 2215 J Street, Sacramento 95816

SEATING IS LIMITED TO 100 PEOPLE

Back by popular demand, Capital Stage and the esteemed Mark Drobny, a California Certified Specialist in estate planning, trust and probate law and founder and CEO of Drobny Rosenthal Law Offices, PC will host a FREE Estate Planning Seminar! Learn how to leave a legacy that mirrors your values and secures the future of your heirs and your favorite charities in Sacramento! Ensure your wishes are carried out.

Although you may already have a will or a trust, we encourage you to attend this seminar in order to enable you to decide whether your trust or will needs updating.

Mr. Drobny is regarded as one of the region’s top experts on estate planning and related topics.

TOPICS COVERED:

• How will the outcome of the recent election impact my existing or future Estate Plan?
• How can I avoid probate and costly legal fees? Do I need a will or trust?
• Who will make medical and financial decisions for me if I am unable? (Power of Attorney and Healthcare Directives)
• How do recent tax laws impact my existing plans?
• How the Fiscal Cliff on 12/31/25 could impact your estate taxes.
• Joint tenancy vs. living trusts – the pros and cons.
• Information about charitable gift annuities.
• Asset Protection Strategies:
• How to liquidate appreciated securities and real estate and avoid capital gains and secure a huge tax deduction.
• How The SECURE Act impacts IRA distribution taxation.
• Why significant changes in tax laws may require your trust to be amended.
• How Prop 19 impacts parent/child transfer of Real Estate.

Don’t miss this free opportunity to take control of your financial future and secure your legacy.

More questions? Contact Development Manager Kirk Blackinton at kblackinton@capstage.org -or- 916-794-0104