Frequently Asked Questions
What is planned giving?
Planned giving enables donors to meet their personal, financial and estate planning goals by making lifetime or testamentary charitable gifts. Making a planned gift to charity can provide a donor valuable tax savings while making a difference to nonprofit organizations that mean the most to the donor. Some planned gifts even allow the donor to receive an income stream or to provide income to family members.
Whether your goal is to acquire income, avoid capital gains on the sale of an appreciated asset or to receive an income tax deduction-a planned gift can help you meet your personal goals while simultaneously making a gift in support of a cause that is important to you.
What can I use to fund a planned gift?
While many donors make gifts in the form of cash, you can also make a gift of personal property or appreciated assets-stocks, bonds or real estate-to Providence Southwest Washington Foundation. In addition, retirement assets and insurance policies (Providence Southwest Washington Foundation can be named as a beneficiary) can also be used to fund a planned gift.
What planned giving options are available?
You can make an outright gift to Providence Southwest Washington Foundation or you can list us as a beneficiary in your will or trust. In addition, you can fill out a form and designate us as a beneficiary of an insurance policy, a retirement fund, an investment portfolio or a bank account. If you would like to receive an income stream, or provide income to family members, you may want to consider a charitable remainder trust or a charitable gift annuity. Feel free to contact us to learn about these and other options that are available.
How do I become a member of Providence's Legacy Society?
You can become a member of our Heritage Society by including Providence Southwest Washington Foundation in your estate plans. Please contact our office and we will provide you with a simple form you can use to tell us more about your intended gift.
What tax benefits are available if I make a planned gift?
Some gifts will produce a charitable income tax deduction and other gifts may reduce future estate tax liabilities. When appreciated property is donated, you may be able to avoid part, or all, of the capital gains tax that would be payable if you had sold the asset. The amount of tax savings will vary depending on a number of factors. If you are considering making a planned gift, please contact us. We would be happy to talk to you and put together a custom proposal showing you your potential tax savings.
How do I make a gift of a life insurance policy to Providence Southwest Washington Foundation?
Beyond naming Providence Southwest Washington Foundation as a beneficiary, you can also make a gift of life insurance by naming Providence Southwest Washington Foundation as the irrevocable owner of your policy. You can continue to make annual cash contributions to us each year to cover the premiums on the policy. These annual cash contribution are tax deductible if the policy is paid up, you may receive a tax deduction equal to the lesser of the value of the policy or the total premiums paid.
What are the advantages of designating Providence Southwest Washington Foundation as beneficiary of my retirement assets? What would happen if I designated my children as the beneficiaries instead?
Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other tax-deferred plan, is an excellent way to make a gift to support Providence Southwest Washington Foundation. It may also make sense as part of a smart tax planning strategy.
Non-retirement assets, such as your home, real estate or stock owned outside a retirement account, are considered "good" assets to leave to family. When you leave non-retirement assets to family, other than your spouse, your family will receive a step-up in basis with these assets, enabling them to sell these assets without having to pay capital gains taxes.
Retirement assets, on the other hand, are "good" assets to leave to your favorite charity. If you were to leave unspent retirement savings to family, other than your spouse, your family will pay income taxes, and potentially estate taxes based on the value of the inheritance. This could result in a nearly 70% tax on these assets, resulting in very little value actually going to family. If, however, you leave the retirement assets to Providence Southwest Washington Foundation, we will not have to pay any of these taxes. For this reason, it may actually make sense to make a gift of a retirement asset to charity. We will be able to use the full value of the asset to further our mission
If I make a planned gift, can I still make annual gifts and receive tax deductions for those gifts?
Absolutely! When you make annual gifts of cash or appreciated assets to Providence Southwest Washington Foundation you benefit from a charitable tax deduction to help offset your income and we can begin using the resources you provide to support our hospitals and programs.
If I include Providence Southwest Washington Foundation in my estate plan should I inform the foundation?
If you have included us in your estate plan, please contact our office to let us know and we will provide you with a simple form you can use to tell us more about your intended gift. By informing us now, we will be able to recognize you during your lifetime and welcome you as a member of our Legacy Society.
