Foundation
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The mission of the Gritman Medical Center Foundation is to encourage, support and promote support of Gritman Medical
Center by developing non-patient funding sources.
To contribute to Gritman Medical Center’s present and future efforts to provide superior healthcare.
Planned giving is as easy as making a charitable gift, while at the same time saving on taxes. We'd like to make it even
easier with this primer on some of the best ways to give--and save.
Gifts of Cash
If you itemize, you can lower your income taxes simply by writing us a check.
Gifts of cash are fully deductible up to a maximum of 50% of your adjusted gross income. For example, if your adjusted gross
income for this year is $50,000, up to $25,000 of charitable gifts may be deducted this year. Any excess can generally be
carried forward and deducted over as many as five subsequent years. Some employers will match your charitable gifts, meaning
your gifts are worth even more. If your company or firm has a matching gift program, simply enclose the form along with your
check.
Gifts of Stock
If you own stock, it is often more tax-wise to contribute stock than cash. This is because a gift of appreciated
stock generally offers a two-fold tax saving. First, you avoid paying any capital gains tax on the increased value
of the stock. Second, your receive an income tax deduction for the full fair market value of the stock at the time
of the gift. For example, if you purchased some stock many years ago for only $1,000 and it is now worth $10,000, an
outright gift of stock to us would result in a charitable contribution deduction of $10,000. In addition, there is
no tax on the $9,000 appreciation in value. Make sure you have owned the stock for a long period of time
(this generally means that you have held the stock for more than one year) to qualify for these significant tax
advantages.
Gifts of appreciated stock are fully deductible--up to a maximum of 30% of your adjusted gross income.
For example, if your adjusted gross income for this year is $100,000, up to $30,000 of long-term appreciated stock
and other property gifts may generally be deducted this year. Any excess can generally be carried forward and
deducted over as many as five subsequent years. Always check with your accountant or other tax advisor for the
advantages (and possible disadvantages) of making a planned gift based upon your particular circumstances.
Gifts of Real Estate
 A gift of real estate can also be tax-wise. A residence, vacation home, farm, acreage or vacant lot may have
appreciated so much in value that its sale would mean a sizeable capital gains tax. By making a gift of
this property instead, you would avoid the capital gains tax, and at the same time receive a charitable deduction
for the full fair market value of the property. It is also possible to make a gift of your home, farm or vacation
home so that you and your spouse can continue to use it for your lifetimes, while you receive a current income
tax deduction. For example, Mr. and Mrs. Smith own a vacation home in the mountains that they would like to continue
using. Its fair market value is $100,000. By contributing the home to us now, but retaining the exclusive right
to use it for the rest of their lifetimes, the Smiths are able to achieve a current income tax charitable contribution
deduction of approximately $25,000. The precise amount will depend upon their ages, the useful life of the house
and other factors.
Gifts of Life Insurance
A gift of life insurance can provide a significant charitable deduction. You could purchase a new policy or donate
a policy that you currently own, but label us as both the owner and beneficiary of the life insurance policy. Check with your
insurance agent for the details. For example, Mr. Anderson owns a $100,000 life insurance policy with a current cash
value of $34,582. By transferring the policy to us as the owner and beneficiary, Mr. Anderson is able to receive
a current charitable deduction in the amount of $34,582. If Mr. Anderson decides to continue paying the premiums on
the policy after the gift is made, these additional premium payments will be tax deductible each year.
Life Income Gifts
Life income gifts can increase your income, provide a charitable contribution deduction and help you avoid capital gains taxes. If
you own stock which is paying you low dividends (maybe two or three percent), a life-income gift may be appropriate.
You could transfer the stock to us and establish a charitable remainder unitrust or charitable remainder annuity
trust that would provide you with a five percent or greater annual return. This income would be paid to you or a loved
one for life, after which the assets would be distributed outright to us. Through such an arrangement, you would be
increasing your income and making a meaningful (and tax-deductible) contribution to us. For example,
suppose Mrs. Jones purchased some stock many years ago for $10,000, and that the stock is now worth $100,000.
She receives $2,000 per year in dividends, or a two percent yield. By transferring the stock to a charitable remainder
trust and specifying that she wanted a six percent return for life, she could:
- Triple her annual income (from $2,000 to $6,000)
- Avoid the capital gains taxes she would otherwise incur on a sale of the stock
- Be entitled to a charitable contribution deduction of approximately $55,000 (the amount of the deduction
depends upon the age of the donor, the rate of return specified in the trust, the size of the gift and other
factors)
Charitable Lead Trusts
Charitable lead trusts are essentially the reverse of the life income gifts described above. The income from the
trust is first paid to us--the charity's interest leads the way (hence the name of the trust). Under this arrangement,
you transfer assets to a trustee who makes payments to us for a specified number of years, after which time the assets
are transferred to your heirs. The charitable lead trust allows you to pass assets on to your children and grandchildren
either completely free or substantially free of all estate and gift taxes. It can make good sense for anyone in the 50%
estate and gift tax bracket.
Bequests
We can be named as a beneficiary in your will in any one of a number of
simple ways. An outright gift, either a designated dollar amount or percentage of your estate, could be specified. We
could also be named as a remainder beneficiary to receive funds only after specific sums have been paid to individual
beneficiaries. It may be helpful to know that you can easily add us to your will through an amendment to your will
called a codicil. Thus, your entire will does not have to be redrafted.
In Conclusion
Check with your attorney, accountant or other tax advisor for additional information on how these general rules
apply to your situation. You can also contact the Gritman Foundation at (208) 883-6592.
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