Ways to Give
Below are descriptions of several ways to give, many of which cost nothing now. Often referred to as “planned gifts,” these gift options are a way to express gratitude, demonstrate values, provide long term support and leave a legacy. Keep in mind that these ways to give may help meet financial, as well as philanthropic goals.
Consider including us in your estate plan. It costs you nothing now but gives us confidence looking forward knowing we will have resources down the road. For a gift from your will or living trust, you can designate a certain dollar amount, a percentage of your estate or whatever remains after all expenses, taxes and other bequests have been paid. Another way is to designate a specific asset or property. Keep in mind that you can choose to make your gift revocable and/or contingent. We have draft bequest language for your attorney’s consideration.
You can give assets such as retirement plans, brokerage accounts and bank accounts by designating us as a beneficiary of them, in whole or in part. Like gifts from a will or living trust, gifts made in this way do not provide any immediate tax deduction. However, heirs may face hefty taxes on assets that have been tax-deferred, like retirement accounts; if this type of asset is donated to us, no tax is due. If you have a donor-advised fund, consider making us an ultimate beneficiary of it.
If you are 70½ and therefore required to take distributions from your IRA, thanks to the Charitable Rollover provision in the tax code, you can make a gift by requesting a direct distribution from your IRA to us; this distribution will not count as taxable income.
Like a gift annuity, a charitable remainder trust can provide income for you and others. The income continues for the lifetimes of the beneficiaries, or a fixed term, or for a combination of the two. When the trust ends, the remaining assets in the trust go to the charitable organization(s) you choose. This kind of trust has many variations to suit your situation.
Do you have a life insurance policy you do not need? A life insurance policy is another asset that you can give through a beneficiary designation; it is the easiest way and it is revocable, but there is no immediate tax benefit. To receive a charitable deduction, you must make us the irrevocable owner of the policy; you also are expected to pay any premiums due, which can be tax deductible too.
We accept gifts of publicly traded securities, including stock, corporate bonds, municipal securities and mutual funds. Securities are valued as of the date the gift is received. Giving appreciated securities is a savvy strategy for avoiding capital-gains taxes. We have instructions to facilitate making this kind of gift available by request.
Perhaps you have your own donor-advised fund. If so, consider making a recommendation that your fund support Advocate.
Gifts of real estate can take on a variety of forms. Besides an outright gift, you can give an undivided fractional share of property or a life estate, which allows you to continue to live in your residence and get a sizeable deduction. We welcome the opportunity to explore the possibility of a real estate gift.
Gift annuities are a way to make a gift for the future, receive a charitable deduction now and enjoy a fixed lifetime income for you or others you choose. In exchange for your gift, we commit to pay a lifetime annuity. Upon the death of the annuitant(s), the remaining amount in the annuity fund will support the Advocate hospital or program you choose.
Annuity rates are based on age. For example, a 68-year-old person making a $10,000 gift would receive a rate of 4.9%, resulting in an annuity of $490 and a charitable deduction of over $3,776. Further, nearly three-quarters of the annuity would be tax-free for over 17 years.
The longer you defer beginning payments, the better the annuity rate you receive. For example, if you just turned 50 and defer starting payments until age 70, your annuity rate would be 9.6% and your annuity would be $960, of which more than one-third would be tax-free for nearly 16 years. You would also receive a charitable deduction of $4,161.