Legacy Giving is an important way to support VHF, and will provide ongoing financial assistance to the people in Haiti. Here are some ideas to help you plan for future giving.
Cash Gifts/Stocks/Marketable Securities
VHF accepts a variety of payment options including cash, checks, and major credit cards (MasterCard, VISA, Discover, and American Express). 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. If you have stock to transfer to VHF, call Fran Rajotte at 615-385-2363 for information.
Charitable Gift Annuity
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 captital 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 periof 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 Asset Gifts
If an investment is now worth less than the original cost, consider selling it and making a tax-deductible gift of the proceeds to VHF. 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 can be more than the current value of the investment.
Life Insurance
In transfering 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 charitble deduction, as well as a tax savings from not paying capital gains tax on the appreciated value of the asset.
VHF Tribute Program
A Tribute Gift to VHF is a way to honor a loved one or friend. You can give a tribute to mark a special occasion such as a birthday, anniversary, bar mitzvah, first communion, confirmation, retirement, 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.) Your name and the party's name will also be listed in The Visitation newsletter.
A Memorial Gift is given in honor 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 VHF. The name is also listed in The Visitation newsletter.
Bequests/Wills
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 deductibe from your estate as a charitable deduction. If you do not have a will, your assets will go directly to the State.
There 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 costs 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 asset, are in a high income tax bracket, would like to enjoy your profits now, wish to minimize capital gains and possible estate taxes, and would like to support your favorite charity(ies), then a CRT may be for you. Benefits include an upfront tax deduction, greater lifetime income, and a meaningful charitable contribution.
Matching Gifts
Employer matching gifts are often overlooked. Check with your employer about the matching gifts program, which can double your gift!
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 VHF will suffice as a receipt for tax purposes.
Visitation Hospital Foundation does not offer legal or tax advice. For advice, consult your attorney or other professional advisor. This ideas stated above are meant to offer general information only. There are also other ways to give such as Hedge Funds, vehicles, and property. Speak to your financial advisor or accountant about the method that is right for you.
