Planned giving encompasses a variety of philanthropic strategies that help you provide for charity while also advancing your own financial and personal objectives. Through a planned gift, you can make a significant gift to Visitation Hospital Foundation to address the needs of the health and well-being of the poor in Haiti for generations to come as well as gain financial and tax benefits for you and your family. Here are some ways to make a planned gift.
CASH GIFTS/STOCKS/MARKETABLE SECURITIES
If you would like to make a cash donation, VHF accepts a variety of payment methods including cash, checks, and major credit cards such as Visa, MasterCard, American Express and Discover. Negotiable stocks that have appreciated in value are an especially attractive form of gift, because you save capital gains tax and also receive a deduction for the current value of the stock. The benefits to the donor are immediate charitable income tax deductions.
CHARITABLE GIFT ANNUITIES
A charitable gift annuity is an irrevocable transfer of cash or marketable securities to VHF, in return for an agreement by VHF to pay the donor a fixed income for life. It benefits the donor by giving him/her an immediate charitable income tax deduction; the ability to spread any capital gains tax due over the life expectancy of the donor, and partially tax-sheltered income from the annuity.
CHARITABLE LEAD TRUST
This is an irrevocable transfer of cash, marketable securities, or property into a trust from which VHF receives the income for a period of up to ten years. At the end of that period, the donor receives the corpus freed from all capital gains. The benefit to the donor is an immediate charitable income tax deduction, and elimination of capital gains taxes on the appreciation of securities or property in the trust.
CAPITAL SEED GIFTS
If an investment is now worth less than the original cost, consider selling it and making a tax-deductible gift of the proceeds. This may allow you to take a deduction for the donation and also take advantage of the capital loss for tax purposes. The loss from the sale can offset other capital gain income and also allows you to use up to $3,000 as a capital loss to offset other income each year. The combined savings (e.g. using the loss to offset other income and taking the charitable deduction for the proceeds of the sale) could be more than the current value of the investment.
Value Donation Tax Savings
Stock purchase $10,000
Current Value $7,000 $7,000 $1,960
Deductible Loss $ 3,000 840
*Tax Savings $2,800
*A charitable gift of the $7,000 proceeds from the sale of the stock would cost only $5,040 after the tax savings. Tax savings (28%) from the $7,000 gift would be $1,960 as an itemized deduction, and the tax savings from the $3,000 loss offsetting other income would be $840, or a total tax savings of $2,800. For taxpayers with a state income tax, the tax savings could be more than $2,800.
In transferring a life insurance policy, VHF is named a sole beneficiary and owner of a policy on the life of the donor or another person. The donor may give a paid-up policy or make payments on a new policy for a period not to exceed seven years, at which time premiums should be paid in full. The donor receives a charitable income tax deduction for the cost of the premiums, and the satisfaction of making a much larger gift than might otherwise have been possible.
AVOID CAPITAL GAINS TAX
When appreciated assets such as stocks or mutual funds are donated, you can deduct the full value, not only the original cost of the asset. The gift can result in a tax savings as a charitable deduction, as well as, a tax savings from not paying capital gains tax on the appreciated value of the asset.
Funds passing to heirs from taxable retirement plans are subject to income tax (state and federal) and federal estate tax. When retirement-plan assets transfer directly to a charity, no taxes are due; therefore, the full amount goes to the charity. These gifts are fully deductible from your estate as a charitable deduction. If you do not have a will, your assets will go directly to the State. These are three forms of bequests:
Specific bequest: a distribution of a certain amount of cash, securities, or a particular piece of personal property, e.g. 1,000 shares of stock, or a piece of art.
Percentage: a stated percentage of the donor’s estate, e.g. 25% of my gross estate.
Residue of the estate: the remainder of the donor’s estate after specific bequests has been satisfied, and taxes and cost have been paid.
CHARITABLE REMAINDER TRUSTS
Charitable Remainder Trusts (CRTs) feature immediate tax deductions, lower estate taxes, and retirement income. How does a CRT work? A highly appreciated asset is placed in a CRT. It is removed from the estate and generates an immediate income tax deduction. The Trustee sells the appreciated asset and re-invests the proceeds in income producing assets. The Grantor receives a lifetime income from the trust. When the grantor dies, the remaining (remainder) trust assets go to the charity(ies). If you are 50 or older, own a highly appreciated assets, are in a high income tax bracket, would like to enjoy your profits now, wish to minimize capital gains and possibly estate taxes, and would like to support your favorite charity(ies), then a Charitable Remainder Trust may be for you. Benefits include an upfront tax deduction, greater lifetime income and a meaningful charitable contribution.
OTHER ASSETS YOU CAN GIVE
There are many assets that may be used to fund a significant gift to Visitation Hospital Foundation, such as appreciated securities, real estate, personal property, business interests, retirement plans, savings bonds, and many others.
CHARITABLE IRA ROLLOVER
Under the extended charitable IRA legislation, if you are age 70 ½ or older, you can make charitable gifts now to Visitation Hospital Foundation using funds from your individual retirement accounts (IRAs) without undesirable tax effects.
IMPORTANCE OF TAX RECEIPTS
It is important to keep you receipts for gifts of $250 or more. These receipts must state that you did not receive benefits in return for your donation. Your “thank you letter” from Visitation Hospital Foundation will suffice as a receipt for tax purposes.
Employer matching gifts are often overlooked. Check with your employer about the matching gifts program, which can double your donation!
A Tribute Gift to Visitation Hospital Foundation is a way to honor a loved one or a friend. You can give a tribute to mark a special occasion such as a birthday, anniversary, or Christmas remembrance. When you send a Tribute Gift, an announcement is mailed to the person you honor. If you are looking for that “special gift” to give during the holidays, or a gift for a birthday or anniversary, you might consider a Tribute Gift to VHF. (Make your check payable to Visitation Hospital Foundation for $50 or more; it is fully tax deductible.)
A Memorial Gift is given in memory of a friend or family member who has passed away. When you send a Memorial Gift, an announcement is sent to the family of the deceased notifying them that you have honored their loved one with a gift to Visitation Hospital Foundation.
Visitation Hospital Foundation does not offer legal or tax advice. For advice consult your attorney or other professional advisor. This is meant to offer general information only.
HOW TO MAKE A BEQUEST
Following is Sample Language for a Bequest to Visitation Hospital Foundation
“I ___(name)_______________, give ___________dollars or ___________percent of my estate to Visitation Hospital Foundation, a nongovernmental 501 (c )(3) nonprofit organization based in Nashville, Tennessee, but working to provide health care in southwest Haiti (for its general purposes) or (for a specific designation).”
237 Old Harding Road, Suite 100
P.O. Box 210270
Nashville, TN 37221
Phone: (615) 673-3501
If you have a car you would like to donate for a tax deduction, please call Vehicles for Charity.
Call 1-866-628-CARS (1-866-628-2277) and Visitation Hospital Foundation will receive 60% of the proceeds.