Charitable Gift Annuities – Income for Life Rates Drop 1/1/2012 – There is still time for the higher rates!
A Charitable Gift Annuity provides annuity payments during lifetime, while making a charitable donation at the conclusion of the annuity term. Here’s how it works: Sierra Nevada Memorial Hospital Foundation and the donor enter into a contract providing a guaranteed fixed dollar return for life to the donor and/or other beneficiaries, in exchange for a contribution to SNMHF. The amount of the annual payment is dependent upon the age of the beneficiary and the size of the gift. At the end of the donor’s life, the remaining assets in the CGA are transferred to SNMHF. In addition to the income, you receive an immediate income tax deduction . The good news the rates are not falling until 1/1/2012. There is still time to secure the current rates and your income for the future.
The Charitable IRA Rollover Gift
The Emergency Economic Stabilization Act of 2008 extends this tax-smart gift idea into the year 2011. If you are 70 and 1/2 or older, you can donate up to $100,000 a year directly from your IRA to SNMHF and receive the equivalent of a 100% income tax deduction. Both Traditional and Roth IRAs may be used to make the gift. The Charitable IRA Rollover Gift must be made directly to SNMHF. The completely tax-free transfer provides the equivalent of a 100% income tax charitable deduction for the gift. You can also direct your required minimum distribution to SNMHF and thereby reduce your taxable income.
Planned Gifts
A planned gift can be best described as any gift of cash, stock or personal property to any nonprofit that requires the services of a professional such as an attorney, estate planner, CPA, financial planner or insurance broker. A planned gift can be an important part of an estate plan, providing an excellent method of reducing taxes. The planned giving program at SNMH Foundation was established to allow donors to make larger gifts than otherwise possible without undue financial sacrifice, while enjoying the financial benefits of such a gift, along with gift recognition and the knowledge that your gift has made a difference.
The foundation staff will inform, guide and serve donors wishing to make a planned gift; however, we urge anyone considering this type of gift to seek the counsel of their own legal advisor in reviewing the tax consequences, terms and overall estate plan implications.
Deferred Giving
If you wish to make a significant gift, but are concerned about losing income from assets you would give, you may want to consider a deferred gift. Deferred Gifts may be made in trust to Sierra Nevada Memorial Hospital Foundation while the donated asset is retained by the donor or other beneficiary for life. Deferred gifts can be an important part of an estate plan, providing an excellent method for reducing income, estate and gift taxes. When appreciated property is involved, capital gains tax may be avoided.
Wills, Bequests and Trusts
You may leave cash, securities, real estate or other assets to Sierra Nevada Memorial Hospital Foundation in your will. The value of such a legacy is deductible from the estate of the donor. It is also possible to establish a Charitable Remainder Trust by means of a will and provide income to the beneficiary of your choice. Making a bequest is as simple as adding a codicil (amendment) to your will.
Donors who are considering making a planned gift are encouraged to contact the foundation office with their intent early in the process to help ensure we are prepared to accept the gift and that your wishes can be honored.
For more information about giving opportunities, please call the Sierra Nevada Memorial Hospital Foundation office at (530) 477-9700.
