There are many ways that a planned gift can benefit the receiving charity as well as providing tax advantages for you.
Think beyond today and consider broader timelines. For example, if you own property, stock or bonds that are underperforming, you may benefit financially by donating these assets instead of selling, providing an immediate tax deduction without paying capital gains taxes.
And that’s just one scenario. What type of gift is right for you? Let’s walk through the options.
Stocks and bonds
- Why: Avoid paying capital gains tax on the sale of appreciated stock by donating the shares. The Valley Medical Center Foundation can sell them without paying taxes.
- How: By certified mail. Contact the VMC Foundation for simple instructions. If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank.
- Your bottom line: You receive a income tax deduction.
- Your impact: The Valley Medical Center Foundation can immediately put those proceeds to good use.
- Why: Avoid paying capital gains tax on the sale of appreciated real estate. Receive a federal income tax deduction for the remainder interest in your home.
- How: Your real property may be given to the VMC Foundation by executing or signing a deed transferring ownership. You may deed part or all your real property to the VMC Foundation. Your gift will generally be based on the property’s fair market value, which must be established by an independent appraisal. You can live in the home until the end of a set period or until your passing. You can deed your home to the Valley Medical Center Foundation with a provision for you and anyone else named to continue living on the property.
- Your bottom line: Receive a charitable income tax deduction and continue living in your home.
- Your impact: The Valley Medical Center Foundation will receive a major gift at the time of your passing and can recognize that with a space dedication or naming based on the individual preferences of the donor and the value of the home.
- Why: Did you know that 60%-70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets with less tax exposure, such as real estate and stock, and give the retirement assets to the VMC Foundation. As a charity, the Foundation is not taxed upon receiving an IRA or other retirement plan assets.
- How: To leave your retirement assets to the VMC Foundation, you will need to complete a beneficiary designation form provided by your retirement plan custodian.
- Your bottom line: Your estate will benefit from an estate tax charitable deduction.
- Your impact: If you designate the VMC Foundation as beneficiary, the organization will benefit from the full value of your gift because your IRA assets will not be taxed at your death
- How: You can make the VMC Foundation the beneficiary of all or a part of your life insurance. Ask your life insurance agent for a change of beneficiary form.