A cash gift is the most common and convenient way to give to the St. Joseph's Hospitals Foundation. Gifts may be made outright or pledged over a period of up to five years. Donors who itemize tax deductions are able to deduct cash gifts fully up to 50 percent of their adjusted gross income. Any excess may be carried forward for up to five additional years. Donors may designate their gift for a specific use by making note of it on the pledge card or enclosing a brief note when making the gift. Checks should be made payable to St. Joseph's Hospitals Foundation, or a gift can be charged with MasterCard, Visa, Discover or American Express.
A gift of appreciated securities, such as stocks, mutual funds and bonds, can provide attractive benefits. An outright gift of long-term, appreciated securities (securities held for more than one year) avoids capital gains taxes. In most cases, the donor may claim a charitable income tax deduction equal to the market value of the securities as of the date the stock is transferred to St. Joseph's Hospitals Foundation. For gifts of appreciated securities, a gift is fully deductible up to 30 percent of the donor's adjusted gross income. Like gifts of cash, appreciated securities may be carried forward for five additional years. St. Joseph's Hospitals Foundation maintains an account (#76402115) with Merrill Lynch (DTC#5198).
Gift of Real Estate
Donors can make a gift of commercial or residential real estate to St. Joseph's Hospitals Foundation and receive substantial financial benefits. Property may be given outright to support the purposes of St. Joseph's Hospitals Foundation and the donor may take a charitable income tax deduction based on its appraised value. Or, the donor may use a home or land that is no longer wanted or needed to fund a life income gift. As with other types of gifts, a donor may designate a gift of real estate to a particular department or program at St. Joseph's Hospitals Foundation.
Retirement Plan Options
Making a gift of a qualified retirement plan asset, such as a 401(K), 403(b), IRA, Keogh or pension plan, is another way to benefit the hospital and receive significant tax savings. Retirement plan assets are often subject to extremely high estate taxes and the income is fully taxable when received by an individual beneficiary. Making a charitable gift may be a better use of the assets.
By naming St. Joseph's Hospitals Foundation as the beneficiary of a retirement plan, the donor maintains complete control over the assets while living. At the donor's death, the plan passes to St. Joseph's Hospitals Foundation free of both estate and income taxes. When creating an estate plan, donors may wish to consider leaving heirs other assets, such as cash and securities, which are not as highly taxed.
Donors can use life insurance to make a gift to St. Joseph's Hospitals Foundation by naming St. Joseph's Hospitals Foundation as the owner and beneficiary of a life insurance policy. A donor receives a charitable income tax deduction based on the lesser of the policy's fair market value or the net premiums paid. Donors may also wish to make gifts of paid-up policies, resulting in a charitable income tax deduction for the policy's cash surrender value.
An important use of life insurance is its ability to replace the value of an asset that has been given to St. Joseph's Hospitals Foundation. A donor can use the tax savings produced by the charitable income tax deduction to purchase and pay premiums on life insurance policies whose proceeds equal the value of the gifted property. This arrangement can serve to protect the interests of family members.
The simplest form of planned giving is a bequest made through a donor's Will. Bequests can result in considerable tax benefits. It is helpful for the St. Joseph's Hospitals Foundation to have in its confidential files a copy of the excerpts from your estate documents that pertain to your charitable gift provision. The following language may be helpful when making a gift by will: I give, devise, and bequeath to St. Joseph's Hospitals Foundation, a charitable foundation and tax exempt organization, the sum of ____ dollars (or otherwise describe the gift; Often a percentage of the residuary estate is designated).
Charitable Remainder Trusts (CRT)
A CRT is designed to pay beneficiaries either a fixed or variable income payment for a designated period of time, after which the remainder of the corpus of the Trust passes to St. Joseph's Hospitals Foundation. Usually funded with appreciated securities, CRT's allow a donor to potentially avoid capital gains and receive a charitable tax deduction at the time the trust is created.
Charitable Lead Trusts (CLT)
A CLT is designed to pay a charitable entity such as St. Joseph's Hospitals Foundation income for a designated period of time, after which assets of the trust are returned to the donor or other non-charitable beneficiary. Such trusts can provide tax benefits to both the donor and the heirs.
Charitable Gift Annuity (CGA)
A CGA is both a gift and an investment. The donor make an irrevocable gift to St. Joseph's Hospitals Foundation and receives a tax deduction in the year the gift is made. We invest the gift and provide to the donor, and up to one other person designated by the donor, guaranteed income for life. The gift remains invested until such time that it is no longer required to make annuity payments. At this point, the gift is used to support St. Joseph's Hospitals Foundation.
This document is intended only to provide general information. Donors are encouraged to consult an attorney or tax advisor for professional legal advice.