Planned gifts allow donors to make a significant gift to Franklin Memorial Hospital's endowment and capital projects during their lifetime with funds that may not come for many years. Planned gifts take many forms, some of which can provide immediate, lifetime income to the donor and save on taxes. While we are happy to describe the kinds of planned gifts available, you should always consult your own financial advisor or attorney when you are considering a planned gift.
Nine Ways to Give*
1. A Gift of Cash: Gifts of cash (paid in cash, by check, or by credit card) provide immediate support for Franklin Memorial Hospital. Those who itemize their income tax returns are entitled to a charitable deduction of up to 50% of adjusted gross income, with a five-year carry-over period for the excess. Download a Gift Form.
2. A Gift of Securities: Gifts of long-term, appreciated securities provide the same benefits as cash for Franklin Memorial Hospital and offer you the additional benefit of paying no capital gains tax. Your contribution is based on the mean value of the stock on the day you transfer the stock to Franklin Memorial Hospital. You are entitled to a charitable contribution up to 30% of adjusted gross income (with five-year carry-over) and you avoid the capital gain which would have applied had you sold the securities.
3. A Gift of Real Estate: Real estate has appreciated faster than the rate of inflation and offers great potential as a gift planning opportunity to support Franklin Memorial Hospital. We would be happy to explore the options and benefits with you of considering the gift of a home, vacation property, condominium, undeveloped land, or other real estate. Real estate contributed outright, in trust, or through a part gift/part sale arrangement provides a way to avoid or substantially reduce capital gains tax.
4. A Gift in Trust: We are happy to work with you and your financial advisor to explore the options and benefits of creating a charitable trust arrangement which suits your unique circumstances and can provide you with income for life or a term of years. For example, you may choose a fixed or fluctuating payment, the rate of such payment, as well as many other features to suit your needs. You incur no capital gain tax on the transfer of appreciated assets (securities or real estate) and you receive an immediate income tax deduction for part of the gift. As with all life income plans, the funds are distributed to Franklin Memorial Hospital upon the death of the life income beneficiary(ies).
5. A Gift of a Personal Residence or Farm with Retained Use: It is possible to transfer ownership of your personal residence or farm to Franklin Memorial Hospital while retaining the enjoyment of the property for the remainder of your lifetime. This may be an excellent way to support Franklin Memorial Hospital, receive a current income tax deduction for the property’s discounted value, and continue to use the property for as long as you live.
6. A Gift of a New Life Insurance Policy: You can make a magnificent commitment to Franklin Memorial Hospital through the purchase of a life insurance gift. Through relatively modest annual gifts which are used to pay premiums on the policy, you can create a far greater gift than might otherwise be possible. By naming Franklin Memorial Hospital as owner and beneficiary of the policy, your annual premiums will be deductible for income tax purposes.
7. A Gift of an Existing Life Insurance Policy: Many people own insurance policies which are no longer needed for their original purposes. Such policies can be given to Franklin Memorial Hospital and you will be entitled to an income tax deduction for the cash surrender value, and the amount of any future premiums paid.
8. A Gift of an Income Stream: You can provide annual payments to Franklin Memorial Hospital from a pool of assets which later will be distributed to your heirs. Known as a Charitable Lead Trust, this plan allows you to direct income payments to Franklin Memorial Hospital for a specific number of years. At the end of the trust’s term, assets are transferred to family members at a reduced transfer tax.
9. A Gift Through Your Will: Executing a will can be both simple and inexpensive. A bequest in your will can be for a particular item, dollar amount, or a percentage of your estate.
* Excerpted with permission from "The Complete Guide to Planned Giving" ©2004 by Deborah Ashton.