NORTHEAST HEALTH FOUNDATION

Assets To Use In Giving

  

Charitable contributions will provide the funds needed to support our health system. In addition to providing for the needs of Northeast Health System and the community, donors can also enjoy benefits from the charitable income tax deductions they are entitled to as a result of their generosity.

 

The following information provides an explanation of the various ways donors can plan significant gifts to the campaign while taking full advantage of the income and estate tax benefits allowed under the law.

Outright Gifts

Most donors who pledge support to Northeast Health Foundation (NHF) will fulfill their commitments with annual pledge payments of cash or marketable securities. For gifts of cash or stock, donors are entitled to a charitable income tax deduction equal to the fair market value of the contribution paid within the tax year, provided they itemize deductions on their tax returns.

 

• Cash: Cash contributions qualify for a charitable income tax deduction up to 50% of a donor's annual adjusted gross income. Any unused portion of the deduction may be carried over for up to five years.

 

• Securities: There are distinct tax advantages to considering gifts of appreciated securities such as stocks, bonds and mutual funds. The donor incurs no capital gain tax on appreciated securities given for charitable purposes and can claim a charitable income tax deduction up to 30% of annual adjusted gross income (with a five-year carry-over). The valuation of marketable securities given for charitable purposes is the mean value between the highest and lowest selling prices on the date of the gift.

 

• Closely Held Stock: A charitable gift of stock in a closely held corporation with no ready market price requires a partial appraisal summary or in the case of gifts over $10,000, a qualified appraisal to determine the value of the gift. The donor receives a charitable deduction based on the appraised value of the stock.

 

• Tangible Personal Property: Gifts of personal property qualify for a charitable deduction equal to the appraised value, provided the item donated is directly related to the mission of NHF. For tangible property gifts valued in excess of $5,000, a qualified appraisal must be obtained (in addition to filing IRS Form 8283).

 

• Real Estate: A gift of real estate or undivided partial interest that has appreciated in value can be an attractive option when considering a major charitable contribution. The services of a qualified real estate appraiser are required to determine the value of a contribution of real estate. As with other appreciated property gifts, the charitable deduction for a gift of real estate is based on the property's current fair market value and the donor incurs no capital gain tax liability.

 

• Corporate Gifts: A corporation can make and deduct charitable gifts in accordance with their articles of incorporation.

 

• Matching Gifts: Numerous corporations have matching gift programs through which they will match an associate's charitable gift in varying amounts. Donors are urged to obtain their employer's matching gift forms and leverage their own gifts.

 

• Life Insurance: The use of life insurance policies for charitable giving is another option to consider when planning a major contribution. A paid-up policy yields a charitable income tax deduction approximately equal to the policy's replacement value. If premiums remain to be paid, the value of the gift is slightly in excess of the policy's cash surrender value. If the donor continues to pay the policy premiums, a contribution deduction is allowed for premium payments. In order to qualify for the charitable deduction, the donor must relinquish all incidents of ownership in the policy and irrevocably designate NHF as beneficiary.

Planned Giving Opportunities

The campaign welcomes gifts made through wills or through other "planned giving" arrangements. Bequest may be made in the form of a specific amount, percentage or residue of an estate. Certain types of charitable gifts allow a donor to make a gift to NHF and secure an income for the donor and, if appropriate, a second beneficiary. The donor can make a gift to the campaign and receive immediate financial benefits, including a lifetime stream of income and a charitable income tax deduction. There are several gift vehicles to choose from, such as charitable gift annuities and charitable remainder trusts.

Donor Recognition

We appreciate and acknowledge all gifts. While the full donor recognition program is presently under development, donors at larger levels will have the opportunity to select from a variety of rooms and areas to name within the renovated and new facilities. Please refer to the list of Campaign Recognition Opportunities.