Endowment Fund

The Museum currently funds itself with donations, grants and event and merchandise proceeds. While these sources have been adequate for funding ongoing programs on a day-to-day basis, continuing growth in the Museum’s collection and the need to secure future financial stability and expand Museum programming makes an endowment essential to ensuring the Museum’s long-term survival and growth.

Endowment Fund Purpose and Operation

The Endowment Fund is a separate fund of the Hoboken Historical Museum to provide a perpetual source of funds to fulfill the goals outlined in the Museum’s Vision Statement. The Endowment Fund will receive money and property to be invested, reinvested and disbursed on behalf of the Museum exclusively to implement the Museum’s Vision:

  • Securing at least 7,500 square feet of additional space including three galleries for a permanent display on Hoboken’s history and special exhibitions, a 75-seat auditorium, space for children’s programs and instruction, office space for Museum staff, and 3,000 square feet of storage for the Museum’s collection.
  • Creating an endowment of at least $10 million to provide income to support the operating and staff costs of building and preserving the Museum’s collection and managing Museum activities.
  • Establishing a full time paid staff including a director, curator, collections manager, development director, membership chairperson, grant writers and administrative assistants.
  • Conducting events (e.g. tours, lectures, special events) that add to the life and excitement of the City and increase awareness and recognition of the Museum as well as raise funds to support operations. Utilizing the latest technology to more effectively and efficiently communicate the Museum’s activities.

Contribution Types

Eligible contributions include one-time gifts, multi-year pledges, planned gifts, event proceeds, memorial tributes, grants and bequests. Contributions may be cash, real estate, insurance policies, securities and other tangible or intangible assets from any person or organization at any time. Please contact Dan Cillié at 917-319-6788 or dcillie@yahoo.com to arrange non-cash contributions or assistance in naming the Museum as a beneficiary in estate planning. Donors may contribute to the Museum’s Endowment Fund or establish a named endowment fund to support a particular area of the Museum’s activities of interest to the donor. Please contact us for more details on establishing a named endowment.

Investment Policy

Preserve capital and maintain moderate growth to provide a firm financial basis for future planning.

Contributors

The establishment of an Endowment Fund will heighten the Museum’s visibility as a recipient of contributions from both individuals and corporations.

Reasons to Contribute

The Endowment Fund offers donors an opportunity to invest in the future growth of the Museum and helps ensure the Museum’s benefits to Hoboken for years to come.

Tax Considerations

Contributions to the Museum’s Endowment Fund are considered contributions to a charitable and educational organization under the Internal Revenue Code 501 (c) 3 and as such are tax deductible for the donor.

Ways to donate the Hoboken Historical Museum Vision Endowment Fund:

We can provide you with basic information on the tax and financial benefits of a specific form of donation but recommend that you consult with your financial or tax advisor before taking any action.

  • Cash – Tax deductible and payable by credit card if you wish.
  • Pledges – Donation of cash or other assets provided to the Museum over a period of time.
  • Appreciated Securities – The donor avoids capital gains taxes and receives an income tax deduction for the full market value.
  • Planned Gifts – Can reduce the donor’s estate taxes:
    • Personal Will ­- Museum is named as a beneficiary.
    • Life Insurance ­- Museum is named as an owner or beneficiary.
    • IRA Accounts ­- Museum is named as a beneficiary.
    • TOD – Transfer on Death provisions for mutual funds and other savings accounts.

Outright Gifts and Pledges

An outright gift or pledge of cash, securities, real estate or other tangible personal property is the most direct form of donation. Outright gifts appeal to those who want the satisfaction of seeing their gift at work immediately or in the near term and have discretionary funds, investments or property at their disposal. The cash or appraised value of the gift is eligible for an income tax receipt and immediate donor recognition.

Planned Gifts

Planned gifts are arranged during the donor’s lifetime and provide benefits to both the donor and the Museum. The donor receives tax benefits, recognition, and the sense of accomplishment and well-being that goes with providing for the future of the Museum and its work.

A will containing a bequest of cash, securities, real estate or other tangible personal property is the most popular form of planned gift. Bequests appeal to those who want the satisfaction of providing for a future gift while retaining control of the property during their lifetime. A tax receipt is provided to the estate for the final tax return.

A very practical way of providing for the Museum’s future is a life insurance policy with the Museum named as beneficiary. Life insurance planned gifts usually appeal to persons whose needs and family situation may be subject to change. The proceeds of any whole life or term policy may be paid directly to the institution or, if estate taxes are a concern, to an estate with a bequest of an equivalent amount to the Museum.

Another form of life insurance-based planned giving is where a donor purchases an insurance policy with the Museum named as owner. This type of planned gift is suited to those who have older insurance policies that are no longer needed or want to make a large gift but have limited resources. The donor pays the annual premiums and receives a tax deduction for their value plus the cash value of the policy when it is paid up.

A charitable remainder trust is an attractive form of planned gift of cash, securities or real estate because the donor keeps the gifted property or the income from it for life and also receives an income tax deduction. It appeals to those who need the use of income from certain assets but wish to donate to the Museum in the future but still receive current tax relief. The amount of the receipt is for the residual interest of the trust and is determined by a formula.

A charitable gift annuity is a variation on the remainder trust planned gift with respect to cash or securities. This will appeal to older donors wishing to have guaranteed life payments all, or substantially, tax-free. An annuity is purchased that guarantees an income for life, or a period of years, and the Museum receives a gift of whatever principal remains after making the required payments.

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