Planned or Deferred Gifts
Incorporating charitable gifts into your
financial and estate plans can have tremendous benefits for both
you and your favorite charities, both now and in the
future. There are a number of different gifting methods that
can be used to maximize your giving power, while also providing for
yourself and your heirs.
Bequests
A bequest is perhaps the most popular and simplest type of planned
gift. Through your will, you may donate any type of asset
(cash, stock, real estate, etc.) or a specific amount, percentage
or residual of your estate.
Most people have heard the phrase, "Last Will
and Testament," and understand that it outlines a person's wishes
for the distribution of his or her assets. But, a Last Will
and Testament is not merely a set of instructions; it is an
expression of your "will" to provide for loved ones, to support the
work of charitable organizations, and to leave a personal
legacy.
Charitable
Trusts
A planned gift can be structured so that you retain the right to
lifetime income. With such "life income" gifts, you benefit
now and California Hospital Medical Center Foundation benefits
later, after you have realized all of the financial and tax
advantages. Trusts can be funded with appreciated property
including real estate and securities.
The Charitable
Remainder Trust provides income to you and/or your
beneficiaries for life or a period of years, with the remainder of
the gift going to charity. This type of gift may also offer
several benefits including:
- Sizable charitable income tax
deduction
- Reduction of capital gains tax
liability
- Increase in spendable income
- Potential reduction of estate taxes
You might also consider a
Charitable Lead Trust, which is
a way of making a "temporary gift" of income to CHMC and eventually
passing the trust assets to your heirs with significant estate tax
savings.
Under one type of lead trust arrangement, the
annual income from the trust is paid to California Hospital Medical
Center Foundation for a specific number of years. When the
trust terminates, the principal then passes to your heirs (e.g.,
your children or grandchildren). The value of the interest
paid to charity during the term of the trust is tax-deductible for
gift and estate tax purposes. The Charitable Lead Trust is
often used to make a campaign gift to charity, while ensuring that
family members ultimately receive the property or assets with a
minimum of taxation.
Charitable Gift
Annuities
A Charitable Gift
Annuity is a contract between you and California Hospital Medical
Center Foundation. In exchange for a donation, the Foundation
agrees to pay you (the annuitant) a guaranteed income for
life. You may also name up to one additional beneficiary to
receive annuity payments. The amount of the annuity is based on the
age(s) of the annuitant(s) and the amount of the gift.
A Charitable Gift Annuity may be funded with
a minimum of $10,000 (typically cash or securities) and may provide
a number of attractive benefits including:
The Charitable Gift Annuity is flexible
enough to meet the objectives of almost any financial
plan. For donors who are 65 years of age or older, a
Charitable Gift Annuity may provide fixed payments larger than the
returns from money market funds, CDs or stock
dividends. Middle-aged donors may consider a deferred gift
annuity. Under this arrangement, you would receive your income
tax deduction now (during your high-income years) and postpone your
annuity payments until a later date (e.g., after retirement) when
you may be in a lower tax bracket.
Life
Insurance
Do you have a life insurance policy that you no longer need for the
security of yourself or your family? By giving the policy to
California Hospital Medical Center Foundation (by making us the
owner and/or beneficiary), you can ensure a substantial future gift
for the hospital's charitable programs. Once ownership is
transferred, any future premium payments are tax-deductible within
certain limits.
Retirement
Plans
Retirement account assets
(from an IRA, 401k, or other vehicle) can be used to benefit
charity while maximizing the amount left to your
heirs. Because retirement assets may be subject to significant
taxation if you leave them to your heirs, it often makes good
financial sense to use these assets to fund your charitable giving
instead. This allows you to leave other assets to your family
members.
For More
Information
CHMC Foundation
suggests that you always consult your personal financial advisor
before making any significant gift.
If you would like to see how a planned gift
might help you and your family to achieve your retirement and
philanthropic goals, we can provide you with information and
illustrations to share with your advisor. To schedule a free,
confidential, no obligation consultation, or to receive free
information via mail, please contact the Foundation office at (213)
742-5866.
