Estate Donations Are Welcome
How do I know which donations are tax-deductible? The following types of donations would qualify you for a tax deduction:
- Cash donations
- Shares or stock donations
- Land and building donations.
Over the past six years, several private donors have given us a considerable amount of donations, such as stock options from family funds and trusts management accounts. These funds have been very important to maintaining the sustainability of our project.
Other forms of donations that are welcome include gifts of shares listed on any stock exchange or units in unit trusts that are ready to trade.
The date of donation is the date on which legal title is transferred to the approved nonprofit. Donation of options and shares with restrictions on holding periods are also allowed.
Estate donations will help The Roberto Clemente Health Clinic buy additional equipment, improve facilities and conduct research to further benefit those who rely on us.
This extra support not only ensures our sustainability, but also allows us to grow, improve, and continue to empower communities and people in need. Our ability to consistently offer excellent service and facilities is enhanced by the generosity of donors.
Estate Planning and Your Donations
Making a planned gift to the Clinic is a wonderful way to ensure your passion for others is continued. In addition, this type of gift may help you reduce or eliminate certain tax liabilities.
We will gladly discuss any planned giving option – in confidence and without obligation.
Making a bequest in your will is a very straightforward planned giving option. A will is essential, regardless of your age or financial status, to ensure that your property is distributed according to your wishes. The federal estate tax can still take approximately 40% to 50% of your estate upon death. Thus, it definitely pays to do some advance planning with your attorney or other professional advisor.
We hope you will consider a charitable bequest in your will to benefit the Clinic. Here are some of your options…
- Specific bequest: Directs a specific dollar amount or property to pass to the Clinic.
- Percentage bequest: Designates a percentage of the total value of the estate as a gift to us.
- Residual bequest: Directs that the Clinic receive a remainder of the estate or a portion of the remainder after all expenses and other bequests have been made. A bequest to the Clinic is not subject to federal or estate taxes, and there is no limit on the amount of the deduction.
Naming The Roberto Clemente Health Clinic as a Beneficiary
Do you have a life insurance policy that is no longer needed to provide for your dependents? Consider making the Clinic your beneficiary. This is an opportunity to make a significant gift to the Clinic without using any of your estate’s capital.
Another option is to make the Clinic both the beneficiary and owner of a paid-up policy. This earns you an immediate tax deduction equal to the policy’s cash value. For further details, please contact your policy’s issuing agent.
An additional easily planned giving option is to buy a Certificate of Deposit (CD) at your local bank and name the Clinic as the beneficiary, payable upon death. The CD can remain on deposit, earning interest until the holder’s death, at which point the Clinic will receive its value. It is important that the CD automatically roll over and maintain the beneficiary designation.
Charitable Remainder Trusts
A Charitable Remainder Trust can be a good option for anyone who owns appreciated assets (i.e., rental property) and wants to receive income for life. A donor can transfer their assets to the trust, where they are sold, avoiding capital gains tax. Then the proceeds are invested, and the donor or other beneficiary receives payments for a set term or for life. At the end of the trust’s life, the remaining principal is a gift to the Clinic.
For further details on a Charitable Remainder Trust, consult your attorney or other professional advisor.
Charitable Lead Trusts
A Charitable Lead Trust is the opposite of the Charitable Remainder Trust. In this case, the donor agrees to give an asset to the Clinic for a set number of years. A Charitable Lead Trust can be set up during your lifetime or through your estate plans. While the trust will not provide you with an immediate income tax deduction, you can exclude the trust’s income from your own income, thereby reducing your taxes. A Charitable Lead Trust may suit donors who exceeded the annual limits on income tax deduction for charitable gifts.
For further details on a Charitable Lead Trust, please consult your attorney or other professional advisor.
Gifts of Property/Real Estate
Gifts of appreciated property can be given to the Clinic through a donor’s will or living trust. A donor would receive an estate tax charitable deduction for the full value of the property. To substantiate an income tax deduction, a qualified appraisal (obtained no earlier than 60 days before you make the gift) is required.
If you have any questions or need further information, please contact…
Julia Guth, Chair of the Board
Or her assistant…