Medcenter One Foundation

Giving opportunities

Outright gift

This type of gift creates the most immediate economic benefit to the Foundation. The gift can be made either in cash, stock or property in which the Foundation assumes total ownership. The donor can attach restrictions on the use of the asset such as for a scholarship fund or new building.

The advantages to this kind of gift are:

1. The donor receives a current income tax deduction.
2. Assets are removed from the donor's gross taxable estaste.
3. Gift may be given to the foundation immediately.

Bequest/will

Bequests are donations made through a will and are distributed by your estate after your death. More charitable gifts are made by bequests than by any other method. You can make a bequest for a specific amount, a specific asset, or a percentage of your estate.

The advantages to this type of gift are:

1. It is revocable during lifetime.
2. It is relatively inexpensive to set up.
3. It provides a charitable gift without losing use of the gift during your lifetime.
4. There is an unlimited charitable deduction for your estate.

Life insurance

Life insurance policies let you donate a substantial amount in the future by making a series of modest donations now. The most common way to give using life insurance is to purchase a new life insurance policy and name the Foundation owner and beneficiary. You receive a tax receipt and deduction for each premium payment you make and, at the time of your death, the Foundation receives the face value of the policy.

The advantages to this type of gift are:

1. The donor can make a large gift to charity in the future for a small contribution made presently.
2. Depending on the method used, the donor can receive a current income tax charitable deduction.
3. A gift of life insurance has not adverse effects on the donor's estate.
4. Very little, if any, documentation is required by the IRS.

Charitable gift annuity

A charitable gift annuity is a life insurance product that allows you to make an immediate gift and receive income for life. Each payment you receive is made up of a taxable interest portion and a tax-free return of principal.

Depending on your age, the rate of return can be from around 5% to as high as 12%. The advantages to this type of gift are:

1. Charitable gift annuities are relatively simple and easy to understand.
2. The foundation receives a current gift.
3. The donor will receive a predictable income for life.
4. Capital gain is distributed over the life of the annuity.
5. The donor will receive a tax-free return of principle.
6. The donor will receive a current income tax charitable deduction.
7. A charitable gift annuity can be funded with a gift of $5,000 or more.

Click here to view charitable gift annuity rates for two lives as of July 1, 2010 pdf

Click here to view charitable gift annuity rates for one life as of July 1, 2010 pdf

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Retained life estate

The retained life estate contract allows a donor to transfer title of donor's home or family farm to the foundation. The donor reserves the right to the property during the donor's lifetime and to receive all of the income therefrom. Upon the death of the donor, the home or farm becomes the property of the foundation.

The advantages to this type of gift are:

1. You can receive income from the trust during your lifetime.
2. You avoid any captial gains tax if the property appreciated in value.
3. You get an immediate income tax deduction.
4. The property is not included in your taxable estate at death.

Charitable remainder trusts and charitable lead trusts

Charitable trusts are trusts in which some property interest passes to a charity. Deductions are available for gifts to charity for income tax, gift tax and estate tax purposes. Charitable trusts generally take the form of a charitable lead trust or a charitable remainder trust and can be set up as an annuity or unitrust.

The advantages of charitable remainder trusts are:

1. You can receive income from the trust during your lifetime.
2. You can receive an immediate tax deduction.
3. You can maintain control over the property during your lifetime subject to the trust's terms.

The advantages of charitable lead trusts are:

1. You or your heirs can get the property back at the end of the trust's term of years.
2. You can receive a larger immediate income tax deduction.

For more information on these giving opportunities, please contact:

Carrol (Meyers) Dobler
Executive director
701.323.8455