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Income for Life & Estate Gifts - St. Joseph Hospital Foundation

St. Joseph Heritage Circle - You may make a gift to St. Joseph Hospital Foundation and receive direct benefits, including the following:

  • A stream of income for your lifetime and/or that of your spouse
  • A charitable income tax deduction
  • An opportunity to establish an endowed fund in your name or that of a loved one
  • Possible avoidance of capital gains taxes on gifts of appreciated property
  • A higher yield than from current investments
  • Membership in the St. Joseph Heritage Circle
  • A good feeling that comes with making a gift to your community hospital

St. Joseph Heritage Circle pays special tribute to Income-for-Life and Estate Gift donors who have named St. Joseph Hospital in their will or living trust, or as a beneficiary of a life insurance policy or retirement plan.

St. Joseph Hospital Foundation staff is available to assist you with achieving your tax, estate planning and charitable giving objectives. We are pleased to provide personal financial projections to you and your financial advisors. For more information please call Paul McGinty, Major Gifts Officer, at (707) 269-4283.

Types of Assets that can be used to make gifts include:

This is the most common way to give to St. Joseph Hospital Foundation. Donors may find that they have tax advantages for using other types of assets for their charitable gift.

Appreciated securities make an excellent gift that allows the donor to bypass capital gains taxes. The donor gives the security directly to the Foundation, who then sells it. The Foundation does not have to pay capital gains tax, as they are tax exempt. The donor gets a tax deduction for his/her gift as well as bypassing the capital gains. Care needs to be taken in following an exact procedure to transfer the securities to protect the donor's tax deduction. Whomever is acting as the agent for the sale must be consulted prior to any work being done. Most of these benefits apply to closely held stock as well.

Real Estate:
Real estate can make an excellent gift to the hospital as it generally contains appreciation and provides attractive tax and income benefits for donors. For more information click Contact the Foundation, above.

Life Insurance:
Policies that are no longer needed make good sources for gifts to the Foundation. When giving an existing policy, the donor is entitled to the replacement cost of the insurance as the charitable tax deduction for the gift. If premiums are still due, the donor can make a gift to the Foundation to pay the premiums and deduct the amount paid each year as a charitable gift.

Retirement Plans:
Because of the rise in 401K and IRA plans in recent years, this is one of the latest and most productive forms of giving. Properly structured through a charitable remainder trust, the owner of the plan or IRA increases the potential for a significant reduction in Estate and Income taxes.

Personal Property:
If the property is related to the business of the hospital, for example a wheelchair, then the gift has the potential for a significant tax deduction for the donor. If the property is not of direct value to the hospital, then the donor is only entitled to an income tax deduction of his/her cost basis or the fair market value if it is less than the actual cost basis.

Forms of Special Agreements

Unitrust and Annuity Trusts:

A Charitable Remainder Unitrust provides an income to one or more individual(s) for life or for a term of years up to 20 years or a combination. The assets used to set up the trust are invested to grow in value and the annual payment to the individual(s) named is based on an annual percentage (5% to 10%) of the market value of the trust. As the value of the trust grows so does the income paid to the individual(s) named. Upon the death of the income recipients and/or at the end of the term of years, the remainder of the trust is distributed to the Foundation or agencies named by the donor. The trust can be added to with additional deposits of assets during the life of the trust. All contributions to the trust are tax deductible and may also enjoy bypass of some capital gains.

A Charitable Remainder Annuity Trust guarantees a fixed dollar payment to the income recipient each year. Once established, no additional contributions can be added to the trust. In the year the trust is established the donor gets to take a tax deduction for the contribution. The annual payments are fixed for the life of the trust.

Gift Annuities:
A donor irrevocably transfers money or property to St. Joseph Hospital Foundation in return for its promise to pay the donor, another or both, fixed and guaranteed payments for life (a gift annuity). In essence, the transfer is part charitable gift and part purchase of an annuity. The amount of the annual payment-paid in quarterly installments-is fixed at the outset and never varies. The older the annuitant at the annuity start date, the larger the annual payments. When there are two annuitants, the annual payments are smaller than if there is one annuitant. A portion of each annuity payment is excludable from gross income until the investment in the contract is recovered. The excludable (tax-free) amount is established at the annuity starting date.

A deferred gift annuity is as described above except that the payments are deferred for at least one year from the date of purchase. The donor can make the gift now and get an income tax charitable deduction while he/she is in a high tax bracket, deferring payment until those years when he/she may need the income more and may be in a lower tax bracket.

The Foundation uses the percentage payment rates recommended by the American Council on Gift Annuities for both gift annuities and deferred gift annuities.

Revocable Gifts:
This is a gift that is not yet completed and is still under the control of the donor. Since the donor remains in control of the trust, there is no tax advantage. The advantage to the Foundation is that the gift will come unless the donor revokes the gift. Usually these trusts are not revoked. Upon death of the donor the trust becomes irrevocable if not revoked before then.

Pooled Income Funds:
Donors may wish to transfer money or securities to a Pooled Income Fund within the St. Joseph Health. The donor's gift is invested with similar gifts and may provide income for the donor, the donor's spouse, and eventually St. Joseph Hospital Foundation.

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