Planned Giving
Ways to make a major gift to St. John Health System
The following items briefly describe various planning tools frequently used to make major charitable gifts:
Cash - Cash is a preferred form of payment for pledges, and donors are encouraged to make pledges for capital campaigns. Pledging a gift over a five-year period may allow for a more substantial gift and the most beneficial tax treatment.
Marketable Securities - Marketable securities may be donated instead of cash. The after-tax cost is less than a cash donation if the securities have appreciated in value, because capital gain is not taxed upon transfer to the charity.
Bequests - Gifts made to charity under a will or a trust. Bequests can be made as a specific dollar amount, a percentage of the total estate, a percentage of the residue of the estate, property (such as stock), a specific asset (such as your home), the remainder of an estate or as a contingent bequest.
Beneficiary Designations - Bank accounts, certificates of deposit, insurance, retirement plans (such as 401k, IRA, pension, profit sharing) are all great options for giving to charity.
Charitable Gift Annuities - A charitable gift annuity provides the donor with a guaranteed, specific income stream, often higher than received from a certificate of deposit, a U.S. Treasury bond or other investment.
Charitable Remainder Trusts - An irrevocable trust that benefits the donor or other individuals named by the donor, for a term of years or lives. Upon termination, remaining assets pass to one or more qualified charities. The two basic forms of charitable remainder trusts include the annuity trust and the unitrust.
Charitable Lead Trusts - Charitable lead trust arrangements are highly effective for avoiding or reducing the estate tax on assets transferred to family members, while also providing current gifts to charity for several years.
Real Estate - Real estate is sometimes overlooked but can be used effectively to fund a major gift. Residential, commercial or agricultural property may be contributed outright to charity or through various charitable trust arrangements.
Private Foundations - Private family foundations are established to create a tax-leveraged philanthropic legacy and have the added advantage that the donor and family members on the family foundation board can invest and control the assets placed in the foundation, subject to certain limitations.
IRAs - Did you know that making a gift to St. John Health System from your IRA or other qualified retirement plan is a great idea? If you are 70½ or older, you can request that a distribution be made from your IRA (up to $100,000) to the St. John Health System Foundations. Gifts made directly to the St. John Health System Foundations are excluded from your taxable gross income and count toward your required minimum distribution—especially beneficial for those who do not itemize on their taxes.
Note: The Emergency Economic Stabilization Act of 2008 does not allow contributions to donor-advised funds, supporting organizations, private non-operating foundations, life income plans or charitable lead trusts.
A gift of your IRA (or percentage) using a beneficiary designation is simple and makes sense. When an IRA is left to an heir, it may be hit with both income and estate taxes but, should you chose to make a planned gift using your IRA through a beneficiary designation, this same gift to the St. John Health System Foundations is exempt from both taxes.
For information on making a planned gift to a St. John Health System entity, please call Lawrence Ghannam, 248-465-4502.
This publication is offered as an educational service and not as legal advice. This information is of a general nature and should not be acted upon without first obtaining the advice of a professional advisor.
© Use by permission only. Contact St. John Health System Foundations at 313-343-7480.
