A planned gift to the Ascension Providence Rochester Foundation can meet your charitable and financial goals while helping to advance the health programs and services that save lives right here in our community. Choosing the right planned gift depends on your personal circumstances and financial goals. The following provides information on various ways to make charitable gifts to the Ascension Providence Rochester Foundation.
Cash – The easiest, most common way for you to support the Ascension Providence Rochester Foundation. Pledging a gift over multiple years may allow for a more substantial gift and the most beneficial tax treatment.
Marketable Securities – Marketable securities may be donated. If the securities have appreciated, donors receive both the benefit of the full fair market value as a charitable income tax deduction, and they also avoid the capital gains tax if the securities have been owned for more than one year.
Bequests – These are gifts made through wills and trusts. Bequests can be made as a specific dollar amount, a percentage of the total estate, or a percentage of the residue of the estate.
Real Estate – A donor can contribute a real estate interest outright or retain a life estate in the property. A life estate allows the donor to retain the right to reside at the property for the duration of their lifetime. A retained life estate allows the donor an immediate income tax charitable deduction for the current value of Ascension Providence Rochester Foundation’s right to the property at death. An outright donation of real estate held for more than one year entitles the donor to claim a charitable income tax deduction for the property’s fair market value, up to 30% of adjusted gross income in the year of the gift. Capital gains and estate taxes are also avoided on donations of real estate.
Note: Gifts of real estate must be reviewed by our administrative officers prior to gift acceptance. Ascension Providence Rochester Foundation reserves the right to decline acceptance of such gifts. Real estate gifts must be evaluated prior to acceptance by a qualified appraiser at the expense of the donor. A donor can contribute a real estate interest outright or retain a life estate in the property. Gifts made through bequest will ensure the absence of estate taxes when Ascension Providence Rochester Hospital is listed as a beneficiary.
Stock – Stock donations are shares in a C Corporation, of which the majority of stock is held by a few shareholders. A gift of closely held stock can be a powerful way to contribute to Ascension Providence Rochester's future.
Life Insurance – Gifts of life insurance can be made by the donor contributing existing policies, or purchasing new policies with the Ascension Providence Rochester Foundation as owner and beneficiary. By designating Ascension Providence Rochester Hospital as both owner and beneficiary of an existing policy the donor receives an income tax deduction equal to the policy’s fair market value or the net policy premiums the donor has paid, whichever is less. Payments to the Ascension Providence Rochester Foundation in support of premiums due on a policy will allow the donor a tax deduction for the payment. Donors also benefit from transferring life insurance to benefit the Ascension Providence Rochester Foundation by removing the asset from their estates and thus avoiding potential estate tax liability.
Retirement Plan Assets – Retirement plans provide for a financially secure future as a result of death. But accounts could be taxed with both income and estate taxes. Such taxes can be diverted by listing Ascension Providence Rochester Hospital as a beneficiary of a specific amount, a percentage or the remainder of your retirement assets. You can establish a gift of retirement plan assets by simply completing a beneficiary form provided by your retirement plan administrator.
Gifts that Provide Income
Charitable Gift Annuities – A charitable gift annuity provides the donor and/or other individuals, such as a spouse, with a guaranteed income stream for life or a term of years. Charitable gift annuities pay at higher rates for more senior individuals and provide immediate income tax deductions for the gift portion of the contract. At the end of the lifetime of the income beneficiaries (or term of years), the remainder is transferred in support of the Ascension Providence Rochester Foundation. The minimum required contribution to establish a charitable gift annuity is $10,000, and the donor/income beneficiaries must be age 65 or older unless a deferred gift annuity is established.
Charitable Remainder Trusts – Is an irrevocable trust that benefits the donor and/or other individuals named for their lifetimes, or for a term of years. Charitable Remainder Trusts provide donors or individuals named with income. Upon termination of the income recipient’s life, or after a term of years, the remaining assets pass to benefit the Ascension Providence Rochester Foundation. The two basic forms of charitable remainder trusts include the annuity trust and the unitrust . Annuity trusts provide donors with income as a fixed dollar amount or percentage and unitrusts provide donors with an amount of income equal to a fixed percentage of the net fair market value of the trust assets as recalculated yearly. Charitable Remainder Trusts are of particular benefit to donors who intend to transfer $250,000 or more into the trust, and who may benefit from the charitable income tax deduction and avoidance of capital gains tax on appreciated assets transferred into the trust.
Charitable Lead Trusts – Charitable lead trusts can be considered the opposite of the Charitable Remainder Trusts as the income will be provided to one of the Ascension Providence Rochester Foundation for a term of years, and the remainder will be transferred to the individuals named by the donor. Charitable Lead Trusts are useful planning tools and are typically established by individuals who wish to benefit the Ascension Providence Rochester Foundation and pass assets to their heirs at significantly reduced or eliminated gift and estate taxes.
If you would like to receive additional information on how you may include the Ascension Providence Rochester Foundation within a planned gift arrangement, please contact:
Ascension Providence Rochester Foundation
1101 West University Drive Rochester, MI 48307