Giving Options

Cottage Grove Community Medical Center Foundation
Expressions of Philanthropy

Ways Make Your Charitable Contribution

Each year it is the generous spirit of friends that makes our work possible. And while giving may seem a straight forward discussion, there are many ways that friends choose to make a gift. Some careful planning will ensure that your objectives are met. Here is an overview of some of the most common ways to make a gift and the benefits of each.

Current Gifts

The most common way to make an immediate gift is by writing a check. This type of cash gift provides immediate liquidity for charity and generates a charitable income tax deduction for the donor in the year of the gift.

Giving stocks or bonds may provide greater tax benefits. If you have owned securities for more than one year and the fair market value has increased since you purchased them, you can avoid capital gains tax and receive a charitable income tax deduction equal to the fair market value.

A gift of real estate that has been held for more than a year also has the advantage of providing you with a charitable deduction based on the current fair market value, as well as bypassing capital gains tax on the appreciation.

Selected artwork, books and antiques are examples of gifts of personal property that can, in certain situations, be an appropriate gift. However, to ensure that any tangible personal property qualifies for a favorable charitable tax deduction, contact our Office of Planned Giving prior to making a gift.

Planned Gifts

Sometimes called deferred gifts, the term planned gifts refers to specific strategies that (in most cases) benefit charity at some point in the future while offering immediate benefits to the donor.

The gift of a paid-up life insurance policy is a good example. By designating a qualified charity as owner and beneficiary of such a policy, you will receive a charitable income tax deduction that, in most cases, is equal to your cost basis in the policy.

Gifts That Generate Income For You

The benefits of planning compound when you utilize one of a number of strategies that generate income as well as provide a number of other attractive benefits.

The Gift Annuity is a great example of how a gift generates income for the donor. This is actually a contract between a donor and a charity that is part gift and part annuity. In addition to the annuity payment, the donor receives a charitable income tax deduction and a portion of each annuity payment may be tax free.

The Deferred Payment Gift Annuity in which annuity payments are delayed for a number of years, offers rates that make it an attractive supplement to retirement income.

Charitable Remainder Trust

The Charitable Remainder Trust is perhaps the most versatile charitable giving tool. With the CRT it is possible to bypass capital gains tax on the sale of highly appreciated assets, generate an increase in income, receive an attractive charitable income tax deduction, and fulfill your philanthropic objectives.

The CRT is a legal trust that can be constructed to produce a predictable annuity payment each year or take advantage of investment growth opportunities with income payments based on a growing trust principal.

Charitable Bequests

Next to writing a check, perhaps the best known vehicle for philanthropy is the bequest. A bequest makes it possible for you to make your wishes known today without relinquishing needed assets during your lifetime. Bequests can articulate the transfer of a specific asset. A piece of property, for example, can designate a percentage of residual estate value after all costs and taxes go to charity and can even be designed to establish a testamentary trust providing heirs with income before the trust corpus passes to charity.

If you would like more information on the strategies discussed here, or any other planning option, we invite you to contact us.

(This information is provided as an educational service. Personal advisors should always be consulted in the planning process.)

Contact:

Amy Callahan
Cottage Grove Community Medical Center Foundation
1515 Village Drive
Cottage Grove, OR 97424
(541) 942-6600
Email