There are numerous ways to make a gift to the Caldwell Memorial Hospital Foundation. Current gifts can be made via cash, stock or property. Deferred gifts can be made through bequests, life insurance policies or retirement assets. Donors can also make memorial or tribute contributions.
Other forms of deferred gifts – such as charitable remainder trusts, charitable lead trusts, charitable gift annuities and pooled income funds – can provide income to the donor or another person of the donor’s choosing. All of these methods of giving provide tax benefits, but since each individual’s financial situation is unique, all donors should consult their personal financial advisors for additional information.
Caldwell Memorial Hospital Foundation uses annual appeals, capital campaigns and special events to raise funds in support of Caldwell Memorial Hospital. Please review the following to see which way to contribute to the Foundation is best suited for you:
- Tax deductible if donor itemizes deductions.
- Up to 50 percent of adjusted gross income can be deducted in any one year.
- Excess can be deducted over the next five years.
- Actual savings depend on tax rate.
- The higher the tax rate, the greater the savings.
- Payable over a three- to five-year period.
- Deductible in the year a payment is made.
- Takes advantage of programs offered by many employers.
- Leverages donor’s gift to a higher level.
- If qualified as a long-term capital asset (a year and a day), property should be given outright.
- Avoids payment of capital gains tax due if property were sold.
- Deduction given for full value of property, limited to 30 percent of adjusted gross income.
- Excess beyond 30 percent can be carried forward for five years.
Property That Has Lost Value
- Donor sells the property, takes loss for tax purposes, then contributes the cash received from sale.
- Deduction given from both the loss and the charitable gift.
- Possible for donor to make gift of residence, farm, or vacation home, reserving right of occupancy as long as donor and spouse live.
- Irrevocable gift qualifies for immediate tax deduction based on present value of remainder interest.
- Assign directly to the Foundation or, preferably, transfer through broker.
- Amount of contribution is fair market value on the date of transfer.
Closely Held Stock
- Produces a current tax deduction equal to fair market value of the stock.
- Could reduce liability for accumulated earnings tax.
Charitable Gift Annuity
- Provides a fixed income for the lifetime(s) of one or two annuitants.
- Amount paid determined by the rates recommended by the American Council on Gift Annuities.
- The older the annuitant, the higher the level of income.
- Portion of gift and income are tax deductible.
Deferred Gift Annuity
- Offers increased income and tax benefits.
- All basic features and benefits of a gift annuity.
- Income delayed until a future date chosen by donor.
- Rate of return and tax deduction dependent on length of income delay.
Life Income Trusts
- Trust assets are funds or property contributed by donor (usually $100,000 or more).
- Flexibility in type of property that can be donated.
- Real estate and municipal bonds may be used.
- Provides a fixed amount of income. (Charitable Remainder Annuity Trust)
- Provides a variable level of income. (Charitable Remainder Unitrust)
Charitable Lead Trust
- Donor provides assets for use for a limited period of time.
- Funds are invested to provide income to the Foundation.
- Assets returned to donor or to estate at end of designated period.
- Can fulfill a pledge while reducing estate and gift taxes that might otherwise be due on assets given outright to heirs.
Wealth Replacement Trust
- Protects inheritance interests of heirs.
- Contributes assets to the Foundation either outright or through planned giving vehicles.
- Using resulting tax savings, donor purchases a life insurance policy with heirs as beneficiaries.
- Make the Foundation the sole owner and beneficiary of paid-up policy.
- Receive income tax deduction for the cash surrender value of policy.
- If policy not fully paid, continue to pay premiums.
- Receive tax deduction for annual premium amounts.
- Outright bequests, as well as certain bequests in trust, are not subject to estate taxes.
- Actual cost is less than face value of gift because of tax benefits to estate.
Bequest can take any of following forms:
- Bequest of a dollar amount of particular securities or other property.
- Residual bequest of all or portion of estate after payment of specific amounts to other beneficiaries.
- Contingent bequest to take effect if other beneficiaries die before the donor.
- A bequest can often be arranged simply with the addition of a codicil amending an existing will.