Ways to Give
Gifts to the Foundation can be made from a number of different types of
assets. Please feel free to call on one of our Foundation staff members
at (909) 335-5540 to help you understand all of the ramifications of any
kind of gift. We can provide you a comprehensive analysis of any of the
gifting vehicles listed below.
A cash gift is the simplest and most convenient way of making a charitable
gift. Cash gifts are fully deductible as a charitable contribution for
federal income tax purposes. The maximum federal income tax deduction
allowable in one year is limited to 50 percent of the donor's adjusted
gross income. You are permitted to carry forward any unused deduction
amounts exceeding this limit for up to five additional years.
Redlands Community Hospital and the Foundation have been celebrating some
significant milestones that are a perfect opportunity for cash donations.
The hospital celebrated its centennial with a public celebration in November
2004. The Foundation is currently celebrating its 25th year of operation.
Donors who would like to contribute in honor of these milestones may choose
to give $100 or $25 in the spirit of these special occasions.
Gifts of appreciated securities - stocks and bonds, can provide many tax
advantages to the donor. The full fair market value of the donated securities
is fully deductible as a charitable contribution for federal income tax
purposes. The maximum deduction in one year is limited to 30 percent of
the donor's adjusted gross income and, like with cash, any unused
deduction amounts exceeding this limit can be carried forward for up to
five additional years. One of the unique tax saving features of the donation
of stock is the donor does not pay federal capital gain taxes on the appreciated
portion of the security.
A gift of real estate can provide many of the same tax advantages as a
gift of appreciated securities. Contributions of real estate can be complex
and take some time, but this should not deter a donor from considering
such a gift. Since each gift of real estate is unique, a Foundation staff
member can assist you in navigating through the process.
Gift of personal property, such as artwork, that can be used in the furtherance
of the Hospital’s mission are welcome.
A gift of life insurance, either through a current policy or the creation
of a new policy, is another way to make a substantial contribution to
the Foundation. Donors can receive federal income tax deductions for items
such as the cash value of the policy and premiums paid each year.
Bequests are donations made through wills or trusts, and are transferred
after the death of the donor. A bequest can be a specified dollar amount
or a percentage of the donor’s estate.
Will or Living Trust
Many donors include a bequest to the Foundation in their wills or living
trusts. Nearly 8% of money given in the United States comes to charities
in this manner. The gift can be a specified dollar amount or a percentage
of the donor’s estate. Donors can minimize federal income and estate
taxes by utilizing this planning technique.
Using IRAs and other retirement plan assets provides the donor a number
of significant financial and tax advantages. Unlike many assets, retirement
plan assets are potentially subject to both income and estate taxes. Naming
the Foundation as the beneficiary of a retirement plan can eliminate estate
and income taxes, if the gift is structured properly. Examples of retirement
include IRAs, 401 (k) plans and profit sharing plans.
LIFE INCOME GIFTS
Many times, creating a charitable portion of one’s estate plan can
serve two desires – making a difference and maintaining income.
A donor can make an irrevocable transfer of assets to the Foundation and
in return a specified beneficiary (the donor, a spouse, children or friends)
receives a payment for a period of time or for their lifetime. Upon the
death of the beneficiary, the assets are used by the Foundation to support
the needs of the Hospital. The donor receives a current income tax deduction
for the remainder value of the charitable gift. Some examples of these
gifts include the following:
Charitable Remainder Trusts
This charitable trust can be funded with assets such as cash, securities
or real estate. Once the property is transferred to a trust, it pays the
beneficiary either a variable income equal to a fixed percentage of the
trust’s fair market value as determined each year or a fixed annual
amount. Upon the death of the beneficiary, the Foundation receives the
remaining assets that will be used to benefit the Hospital. The Foundation
is willing to serve as the trustee or successor trustee of your charitable
Charitable Lead Trusts
A Charitable Lead Trust is the opposite of the Charitable Remainder Trust.
These trusts are usually funded with an appreciated asset that the donor
is reasonably sure will continue to increase in value and/or produces
a good stream of income. With this trust, income is provided to the Foundation
for a specific period of time. At the termination of the trust, the remaining
assets are distributed to the donor or others designated by the donor.
Donors can reduce their estate taxes as well as pass assets to others,
sometimes at a discounted value.