What are the best kinds of assets to give?
Well, it really depends on your particular situation. When most people think of making a gift, they think of writing a check or giving cash. But other assets may provide greater advantages in terms of tax avoidance, net cost, and eventual charitable impact. Always consult with your financial advisors and the Holy Name Health Care Foundation Office to determine the most appropriate and advantageous way for you and your family to make a gift to Holy Name.
Choose one of the following methods of giving to learn more:
Cash
Securities
Retirement Funds
Property
Insurance
Wealth Replacement
Explore the many options of Planned Giving at Holy Name. For additional resources and tools to plan out your personal giving strategy, read What to Give.
Use our Gift Calculator to help determine where to begin.
Get smart on how to plan for future giving. We invite you to visit our Foundation Reading Room for articles on a variety of planned giving articles, or check out the latest financial trends at Bloomberg.com.
Cash
The most common type of gift is the gift of cash - and with good reason. It is simple, straightforward and as easy as writing a check. A gift of cash may be made either as a one-time contribution to Holy Name Hospital or as a pledge to be paid on a schedule determined by the donor. Cash gifts are also accepted through Visa, MasterCard and American Express. If your wish to make a pledge, the Foundation Office will set up a convenient payment schedule and send a pledge reminder to you at the appropriate time. Cash gifts are tax-deductible.
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Securities
With the proliferation of on-line stock trading companies, the buying and selling of securities has never been easier. In fact, many people find it preferable, from a tax standpoint, to make gifts of securities (stocks and bonds), which have risen in value since the time they were purchased. These "appreciated securities" have two very important advantages: (1) you can deduct the full value on the day they are given to Holy Name Hospital, and (2) you can avoid capital gains tax on their growth. The current market has made this an ideal time for using appreciated securities to reduce income tax liability and to benefit charitable organizations like Holy Name Hospital.
Contact the Foundation Office at (201) 833-7143 or email us at Foundation@holyname.org if you would like to receive a free copy of our brochure "Giving Appreciated Property - How to Get the Most Out of It."
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Retirement Funds
Do you have an old mutual fund that you no longer need?
More and more, retirement funds that are no longer needed seem to be the easiest asset to use for many individuals interested in making a charitable gift. Gifts from these assets often make better sense to the donor than gifts of cash, securities or personal property.
In the years since IRAs and 401Ks were established, many people have deposited significant funds that have grown rapidly as the markets have climbed. Your retirement funds may be taking up a sizable portion of your estate right now. Did you know that in your estate, your retirement funds will be taxed more heavily than others? It may make good sense to talk to your advisors about committing appreciated retirement funds to Holy Name Hospital instead of other assets such as cash or personal property. In some estates, retirement funds can be taxed at up to 80%, leaving little for the heirs they were intended for. Make sure you talk to your advisors about what assets to keep as well as give away!
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Property
Personal property that has gained in value since you acquired it (such as real estate or works of art) can be an especially effective way to make a gift. The tax rules that support these gifts are more challenging than simple gifts of cash or securities, so please call the Foundation Office and we will work closely with you and your advisors to determine the best way to donate personal property.
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Insurance
Have you reached a point in your life where you don't need your life insurance any more? The insurance coverage you have earned over the years may now be valuable enough to activate large estate taxes that, if you still own the policy at the time of your death, will be expensive to your heirs.
A gift of life insurance allows Holy Name Hospital to acknowledge the donor now and allows the donor to make a gift that is probably larger than would be possible from current income. To make this gift tax-deductible, it must be irrevocable and the Holy Name Health Care Foundation must be named the owner and beneficiary of the policy.
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Wealth Replacement
This is another important and highly beneficial use for life insurance in your charitable giving plans. When you make a substantial gift to charity, you are often reducing the amount of your assets that will go to your heirs. More and more, major donors to charity are using some of their tax savings from their charitable deduction to purchase a life insurance policy on their own life and make their heirs the owners and beneficiaries of that policy. When properly constructed with the help of your financial advisors, this wealth replacement strategy can help the donor make a larger gift and leave a larger legacy for your children. Of course, you should consult your financial advisors about the tax considerations of this strategy on your estate before purchasing any life insurance product.
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