A planned gift is any contribution that benefits a charity upon the benefactor’s death. A planned gift can be an important part of an estate plan, providing an excellent method of reducing taxes and/or generating income while ultimately supporting your favorite charity. Making a planned gift usually involves the services of an attorney, estate planner, financial planner, or insurance broker.
The planned giving program at St. Joseph's Foundation enables benefactors to make larger gifts than might otherwise be possible without undue financial sacrifice. Benefactors are able to enjoy both the financial benefits of a planned gift and the satisfaction of knowing they are making a difference at St. Joseph's Hospital and Medical Center.
The professionals at St. Joseph's Foundation are available to help you find the planned gift that works best for you and your family. Just call 602-406-3041 Monday-Friday, 8 a.m.-5 p.m., or email us by completing a Contact the Foundation form.
Types of planned gifts:
Bequests in Wills and Trusts
The simplest form of planned giving is a bequest. A benefactor may leave cash, securities, real estate, or other assets to a charity in his or her will or trust. Making a bequest can be as simple as including the gift in a will or adding a codicil (amendment) to an existing will.
Charitable Gift Annuity
A charitable gift annuity is a contract between a benefactor and a charity, whereby the benefactor gives the charity a certain amount of money, and the charity agrees to pay the benefactor a fixed annual interest rate for as long as the benefactor lives. The rate depends on the benefactor’s age when the annuity is purchased. Part of the purchase price creates a tax deduction, and part of the annual income is often tax-free.
Charitable Remainder Trust
In a charitable remainder trust (CRT), the benefactor creates a trust and donates an asset to it. The trust pays the benefactor an agreed-upon annual rate of interest for an agreed-upon length of time. Upon the benefactor’s death, the trust goes to the named charity. Like other planned giving vehicles, a CRT offers tax benefits, as well as life-long income. Learn more.
Charitable Lead Trust
In a charitable lead trust (CLT), the benefactor establishes a trust, and the income from the trust goes each year to the charity. When the benefactor passes on, the trust goes to his or her estate. A CLT can offer positive tax consequences.
Life Insurance
A simple way to make a gift to a charity is to donate a life insurance policy to the charity, making it both the owner and beneficiary of the policy. All the premiums paid on the policy would be considered charitable contributions, thus providing the donor tax benefits. A charity can also be named a partial beneficiary of a life insurance policy.
Retirement Accounts
Another simple way to make a planned gift to a charity is to name the charity the beneficiary or partial beneficiary of a retirement account.
