By weighing the various assets donors have as well as how they are set up, it's possible to produce a result that is very worthwhile to the donor, their heirs, and the HaysMed Foundation.
Simply put: planned giving is the process of making a significant charitable gift during a donor’s life or at death that is part of his or her financial or estate plan. Smart planned giving is usually best accomplished as part of a donor’s overall financial situation.*
Planned gifts make use of legal and tax strategies and/or financial products requiring donors to turn to professionals for assistance. In contrast, charitable donation made from a person’s cash flow is not defined as a planned gift.
Planned gifts take a number of forms:
Need to preserve your assets during your lifetime? Making a gift through your will provides you with control of your assets throughout your lifetime and becomes an ultimate gift to benefit HaysMed. Consider naming the Hays Medical Center Foundation to receive a certain amount or percentage, or to receive the “residue” of your estate. There are no immediate tax advantages although a bequest may reduce estate taxes, if applicable.
For examples of language to use to include the HaysMed Foundation in your will, visit our GIFTS BY BEQUEST PAGE.
A tax-deferred retirement plan [IRA, 401(k), 403(b), Keogh, etc.] is an excellent way to provide for retirement years, and reflects wise financial planning. However, much of the remaining principal value can be highly taxed upon death when a natural heir or other person is named as a beneficiary. Donors who select the Foundation as the beneficiary avoid those taxes, and can leave other, lower-taxed assets to family members. Your plan administrator can provide the beneficiary designation forms needed.
Bonds are ideal assets to bequeath to the Foundation because, like qualified retirement plans, they are subject to income taxes in the hands of those who inherit them—unless they are given to charity.
You don’t need a large estate to make a significant gift. A current or new life insurance policy can be an ideal asset for funding a charitable gift larger than you might have thought possible. There are several options you can consider:
Name the Hays Medical Center Foundation as beneficiary
Naming the Hays Medical Center Foundation as the primary or contingent beneficiary of a life insurance policy is easy to do. Simply request a beneficiary designation form from your life insurance company and name the Hays Medical Center Foundation as beneficiary. If, in the future, your personal or family needs change, you can always replace the named beneficiary with a new one.
Transfer ownership of an existing policy to Hays Medical Center Foundation
You may have a life insurance policy that you simply no longer need. If you have paid all premiums owed (a paid-up policy), or you’ve paid all premiums due and more will be owed in the future (a partially paid-up policy), you might consider transferring ownership of the policy to the Hays Medical Center Foundation.
If you make the Foundation the owner, you can claim a charitable income tax deduction. The deduction will be equal to the policy’s replacement value or its basis, whichever is less. If premium payments are still owed (a partially paid-up policy), and you make annual cash gifts to the Foundation equal to the premium amounts as they become due, you will be entitled to an income tax deduction equal to each of those premium payments.
Make the gift of a new policy to Hays Medical Center
Another option to consider is taking out a new policy making the Hays Medical Center Foundation the policy owner and beneficiary. Your annual gifts to the Foundation will be applied to premium payments and will entitle you to charitable income tax deductions for those gifts
These attractive charitable giving options provide donors (and/or others) with a life income or other benefits. These gifts specify the Foundation as the ultimate charitable beneficiary. Such gifts can take several forms:
With a charitable gift annuity, the donor transfers cash or other liquid assets, such as stocks and bonds, to the Foundation in exchange for regular payments for life. The amount of each payment is determined, in part, by the donor's age at the time the annuity agreement is established. The older the designated annuitants are at the time of the gift, the greater the fixed income the Foundation can agree to pay. In addition, a portion of the income may be tax-free.
Charitable Remainder Trusts pay the donor or a beneficiary on an annual basis for a fixed number of years, or for life. A charitable remainder annuity trust pays the beneficiary a fixed amount annually, regardless of the trust's investment performance. In a charitable remainder unitrust, the donor receives a set percentage (determined at the outset depending on personal needs and situation) of the value of the trust assets. This value is re-determined each year, providing the donor with protection against inflation. In both trust types, the remainder of the trust may be given to the Foundation.
Charitable Lead Trusts provide specific income to the Foundation for a set number of years, then return all trust assets to the named beneficiary. These trusts make it possible for donors to reduce the size of their estates, while passing assets to the next generation and benefiting the Center.
Planned giving is facilitated by an array of professionals including many working within charitable organizations. For donors it is very useful to think of planned giving as a process as opposed to a set of products.
*The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney or your accountant. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.