Planned Giving Options
Determining what planned giving option is right for you is just as important as making the gift. Some gifts allow you to receive income for the rest of your life, and most gifts provide a variety of tax benefits such as tax-free income, avoidance of capital gains tax, increased charitable contributions deduction and potential estate-tax savings. The choice you make will depend on the goals for yourself, your family and your overall estate and financial plans.
Below is a sampling of planned giving options. We can give you information about which giving strategy may be right for you, and we strongly encourage you to speak with your financial advisor. All these options are available, regardless of the facility you wish to donate to.
Through a simple provision in your will you may make a gift to the UHS Foundation, UHS Chenango Memorial Hospital Foundation or Enhance UHS Delaware Valley Hospital Fund. This is the easiest and most common type of planned gift. Making a bequest is an excellent choice if you want to maintain control of your assets during your lifetime and support UHS in the future. We can work with you and your financial advisor to craft specific bequest language that accurately reflects your gift intentions. We also provide sample bequest language.
Charitable Gift Annuity
A charitable gift annuity is a formal contract between you and the UHS foundation/fund of your choice. It states that if you transfer assets to us, we agree to make fixed payments to you (or another beneficiary you designate) for life. Upon your death (or the death of the beneficiary), the remaining assets become available to UHS. This is the second most frequently used planned gift technique. It offers these benefits:
- Potential increased income, a portion of which may be tax free
- You no longer have to worry about investment management and market fluctuations
- Immediate charitable contribution deduction or lower income tax liability
- Ability to avoid capital gains tax and reduce estate tax liability if any
The payout rate and charitable deduction for charitable gift annuities depends on the age of the donor and the number of beneficiaries. The older the donor is, the higher the payout rate is, and the higher the charitable deduction is for the year the gift is made. Please contact foundation/fund staff for specific information on how this option may work for you.
Note: Organizations that issue charitable gift annuities in New York must apply for a permit from the New York State Insurance Department and comply with a host of regulations, reporting requirements and the establishment of annuity reserve funds. Both the UHS Foundation and the UHS Chenango Memorial Hospital Foundation are authorized to issue charitable gift annuities and are in full compliance with these regulations.
Charitable Remainder Trust
This gift technique enables you to transfer assets to the UHS Foundation, UHS Chenango Memorial Hospital Foundation or UHS Enhance Delaware Valley Hospital, which in turn would make variable payments to you (and/or a beneficiary you designate) for life. Upon your death (or the death of the beneficiary), the assets become available to UHS. This technique offers these benefits:
- Annual income for life
- Immediate charitable contribution deduction
- Removal of asset from estate
- Ability to avoid capital gains tax and reduce tax liability
- Ability to select trustee and offer investment management guidelines
- Potential inflation fighter since trust growth beyond payout can provide increased income in later years
Similar to a charitable gift annuity, the charitable deduction is dependent upon the age of the beneficiary. However, you and UHS Chenango Memorial Hospital can negotiate a payout rate, although the minimum is 5% of trust assets valued annually.
If you own a life insurance policy you no longer need to protect your loved ones or business interests, you can name the UHS Foundation, UHS Chenango Memorial Hospital Foundation or UHS Enhance Delaware Valley Hospital as the beneficiary of the policy. A second option is transferring ownership of the policy to UHS in your lifetime. A third option is to purchase a new policy specifically for gifting. Life insurance rates have declined dramatically in recent years and you may be surprised at the affordability of new insurance, even if you’re in your 60s or 70s. A type of insurance that has become very popular for estate-planning purposes and gifting is the “second to die” policy, where the policy doesn’t mature until the second death (which reduces the premiums paid considerably). Benefits include:
- Ability to make a large gift with little costs to you
- Immediate tax deduction for the cash value of the policy if transferred in your lifetime
- Current or future insurance premiums may be tax deductible
Life insurance can be a very cost-effective means to endow your annual gift. When considering a new policy, please be mindful of underwriting and insurability factors.
If you own your own home or condo and your heirs have no interest in the property, you can make a gift of your residence during your lifetime, yet retain the right to live on the property. Benefits include:
- Immediate charitable income tax deduction
- Removal of the property from your taxable estate and reduction of estate taxes
- Satisfaction of knowing the property won’t have to be sold in a down market
A retirement plan gift is easy to make and may be the most tax-efficient gift you can make to a charity. Since most individuals have contributed to retirement plans on a tax-deferred basis (meaning taxes have been postponed), retirement plan income is taxed at your marginal rate (federal and state). You can avoid the two-fold income and estate taxation on retirement plan assets by gifting. Please consult with your financial advisors for the potential savings this technique might provide to you.
We’re Here to Help
If you’d like to speak with a member of our foundation/fund staff, please contact us using the telephone numbers listed below. We’re also happy to work with your attorney, accountant or financial planner to help you accomplish your financial and philanthropic goals.
- UHS Foundation (for UHS Wilson Medical Center and UHS Binghamton General Hospital): 607-762-2171
- UHS Chenango Memorial Hospital Foundation: 607-337-4510
- UHS Enhance Delaware Valley Hospital: 607-865-2409