Cornerstone Society
Gift Annuities
Another popular planned giving option , a gift annuity , can be a good choice if you are concerned about the fluctuating value of your investments , and are looking for a secure source of fixed income for now and the future .
“ Charitable gift annuities are a way for donors to give a cash gift while also supplementing their retirement income ,” Mr . Harrison says . After you transfer cash or securities to an organization like the Scott & White Healthcare Foundation , the organization pays you ( and another individual , if you choose ) a lifetime annuity . This ensures a fixed income for life , with a payment amount based on your age at the beginning of the contract . When all annuitants are paid , the remaining value would pass on to Baylor Scott & White when the contract ends .
The lifetime annuity you receive from a charitable gift annuity is completely backed by the full assets of Baylor Scott & White Health . However , the way that gift annuity payments are taxed can be complicated . If they are funded with cash , part of the payments is tax-free and part is taxed as ordinary income . If the annuity is funded with appreciated securities or real estate , part is taxed as capital gain , part as ordinary income , and part may be tax-free . As with any estate planning decision , it will be important for you to consult with your own financial adviser as well as representatives of the Scott & White Healthcare Foundation .
Trusts
If making significant annual gifts during your lifetime is important to you — or if you have a large estate that would be subject to gift and estate taxes — your best option might be a charitable lead trust . “ In this case , the donor has more control and flexibility ,” says Mr . Harrison . “ Compared with a gift annuity that is for life , a trust can be limited to a term of years . The donor chooses the term of the trust and the amount of the annual payout to the non-profit of their choice .”
When you transfer assets to a charitable lead trust , you can provide annual gifts to organizations like the Scott & White Healthcare Foundation for a set period of time , or for the lifetime of an individual or individuals . After that set time period elapses , the trust is terminated and all remaining assets are distributed to family members or other beneficiaries that you specify . While there are many benefits to a trust — including the reduction or elimination of gift and estate taxes on trust assets that pass on to family members — setting up and maintaining a trust can be an expensive and complex process that requires the assistance of an estate planning expert .
Retirement Plan Gifts
In recent years , charitable gifts made in the form of qualified retirement plans or individual retirement accounts ( IRAs ) have also become popular tax-planning strategies . Good news came last December , when legislation made the charitable IRA rollover option permanent . “ That means people aged 70½ and older who are required to take a distribution of a certain amount from their IRAs can now make a direct transfer from their plan to a nonprofit without owing any taxes ,” says Mr . Harrison . “ Before this , everyone had to wait until the end of the year to learn whether this would be possible .”
Life Insurance Designations
Another meaningful way to provide a legacy gift is to designate a not-for-profit organization as the beneficiary of your life insurance policy ; this allows donors to make a larger gift than they might otherwise be able to afford . “ Donors can make the Scott & White Healthcare Foundation the owner of their policy if it ’ s a whole life policy , or they can make us a full , partial , or contingent beneficiary ,” Mr . Harrison says .
Cornerstone Society
Every year , the Scott & White Healthcare Foundation honors individuals who have made a provision to the organization in their estate plans at a special luncheon . Mr . Harrison says , “ It ’ s our way of saying , ‘ Thank you ,’ to our planned giving donors and to keep them updated about what ’ s happening , as well as our plans for the future .”
The Cornerstone Society honors the dedicated individuals whose generosity and foresight have made possible all the extraordinary things happening at Baylor Scott & White Health - Central Texas . The lasting impact of their gifts helps ensure our continued ability to provide the best healthcare for future generations .
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