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Planned Giving at Newport Hospital
Leave a Lasting Legacy
A bequest is generally a revocable gift, which means it can be changed or modified at any time. You can choose to designate that a bequest be used for a general or specific purpose so you have the peace of mind knowing that your gift will be used as intended. Bequests are exempt from federal estate taxes. If you have a taxable estate, the estate tax charitable deduction may offset or eliminate estate taxes, resulting in a larger inheritance for your heirs.
Types of Bequests
Specific Bequest. A specific bequest involves making a gift of a specific asset or dollar amount.
Percentage Bequest. A percentage bequest involves leaving a specific percentage of your overall estate to charity.
Residual Bequest. A residual bequest is made from the balance of an estate after the will or trust has given away each of the specific bequests. A common residual bequest involves leaving a percentage of the residue of the estate to charity.
Contingent Bequest. A contingent bequest is made to charity only if the purpose of the primary bequest cannot be met. For example, you could leave a specific percentage of your estate to a relative, but the bequest language could provide that if the relative is not alive at the time of your death, the percentage will go to the Newport Hospital Foundation.
In order to make a bequest, you should speak with your attorney. We have provided some basic bequest language to assist you and your attorney.
1. Bequest of a Specific Dollar Amount
I hereby give, devise and bequeath _________ and No/100 dollars ($DOLLARS) to Newport Hospital Foundation located in Newport, RI, income and principal to be applied in its discretion for its general uses and purposes.
2. Percentage Bequest
I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to Newport Hospital Foundation located in Newport, RI, income and principal to be applied in its discretion for its general uses and purposes.
3. Residual Bequest
I hereby give, devise and bequeath to Newport Hospital Foundation located in Newport, RI, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate, income and principal to be applied in its discretion for its general uses and purposes.
4. Contingent Bequest
If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to Newport Hospital Foundation located in Newport, RI, DESCRIPTION OF PROPERTY, income and principal to be applied in its discretion for its general uses and purposes.
If you are considering a bequest but would like to ensure that your bequest will be used for a specific purpose, please let us know. We would be happy to work with you and your attorney to help you identify ways to give and meet your charitable objectives. We will also work with you and your attorney to craft language to accomplish your goals.
If you are making a restricted bequest, we recommend that your attorney include the following provision to give the Newport Hospital Foundation flexibility should it no longer be possible for us to use your gift as you originally intended:
If, in the judgment of the Board of Directors of the Newport Hospital Foundation, it shall become impossible for the Newport Hospital Foundation to use this bequest to accomplish the specific purposes of this bequest, the Newport Hospital Foundation may use the income and principal of this gift for such purpose or purposes as the Board determines is most closely related to the restricted purpose of my bequest.
Charitable Gift Annuity
How It Works
Through a simple contract, you agree to make a donation of cash, stocks, or other assets to Newport Hospital Foundation. In return, you or a loved one receive a fixed amount each year for the rest of your lifetime.
Below is an example based upon a donor 72 years of age establishing a $10,000 immediate payment charitable gift annuity with cash.
- Immediate. Charitable income tax deduction of $4,240.
- Annual. Annual payments of $540 for life of annuitant, age 72, $397 tax-free for the first 14.5 years.
- Future. Newport Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.
In addition to providing a gift to Newport Hospital Foundation and receiving fixed payments for life, you also receive these benefits:
- You receive an immediate charitable income tax deduction for a portion of your gift.
- Your charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy.
- Your payments are not affected by fluctuations in the economy.
- The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.
- If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.
If You Don't Need Extra Income Right Now...
Deferred Payment Charitable Gift Annuity
How It Works:
You make the contribution to us now, securing a current income tax charitable deduction. Starting at least one year after your gift, Newport Hospital Foundation provides you or a loved one with fixed payments for life. This is especially advantageous if your tax bracket is higher now than it will be later when you retire. The rate depends on your age now and your age when the payments will begin. Because payments are deferred, the rate is considerably higher than with an immediate gift annuity. Your charitable deduction is larger, too, when you choose to defer the start of your payments.
In addition, for many people, contributions to IRAs, 401(k) plans and other retirement plans are limited. The deferred payment gift annuity is a good way to provide the additional retirement income you desire.
Below is an example based upon a cash gift of $10,000 for a donor 55 years of age who defers the start of his payments for ten years.
- Immediate. Charitable income tax deduction of $3,597.
- Annual. Annual payments of $650 starting in 2024 for life of annuitant, age 55, $322 tax-free for the first 19.9 years.
- Future. Newport Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.
Life Insurance, Donor Advised Funds, and Retirement Accounts
What do life insurance, donor advised funds, and retirement accounts all have in common? They are all assets that you can name the Newport Hospital Foundation as a beneficiary of as part of your estate plans. In most cases you just need to contact your fund administrator and complete a change of beneficiary form. Doing so can be a simpler and less expensive alternative to changing your will or trust.
And when deciding which assets to leave to your heirs and which to leave to charities like the Newport Hospital Foundation, there are potential tax benefits involved in leaving a charity a retirement account and your heirs’ other types of assets. Talk to your financial advisor to learn more today.
IRA Charitable Rollovers
Do you own an IRA or other qualified retirement plan? Are you at least 73 years old? Are you looking for a way to potentially reduce your tax burden even if you don’t itemize while also supporting our mission? If so, consider making an IRA charitable rollover gift. Just contact your fund administrator today for more information on how to make a gift directly from your IRA to support the Newport Hospital Foundation.
With an IRA charitable rollover you can:
Direct up to $100,000
- Satisfy your annual required minimum distribution, or RMD, up to the amount of your gift
- Give from pre-tax assets and your distribution is excluded from taxable income
- Help avoid limits on charitable deductions
Cash, Securities, and Real Estate
Cash is the easiest of all assets to transfer in order to fund a life income gift to Newport Hospital Foundation. Ordinarily, the receipt of your check by the hospital concludes the transaction with the postmark on your envelope as your official date of gift. A life income gift (such as a charitable gift annuity or a charitable remainder unitrust) is likely to provide higher income than either a certificate of deposit or a savings account.
Securities and Mutual Funds
Many donors who own highly appreciated securities are reluctant to sell because of the capital gains tax on the appreciated portion of the assets. Using securities and/or mutual funds to fund a life income gift is a way to avoid incurring up-front capital gains tax liability.
In reviewing their assets, donors often find that real estate, whether their primary residence or vacation home, has appreciated more than their other assets. A gift of real estate to Newport Hospital Foundation can offer significant benefits to both the donor and the hospital. There are several options for making a real estate gift:
- Outright Gift of Real Estate: A gift to the hospital results in a charitable income tax deduction based on the fair market value of the property at the time of the gift. In addition, the donor is able to avoid any capital gains tax liability.
- Life Income Gifts of Real Estate: A gift of real estate can be structured to provide a life income (usually through a trust or a deferred payment gift annuity). Whatever gift vehicle is chosen, the donor receives a charitable income tax deduction (for a portion of the gift's value) in the year the gift is made.
- Gift of Real Estate with Retained Life Estate: A donor may decide to make a gift of their principal residence or vacation home to the hospital and retain the right to live in the house for their lifetime. The donor receives a charitable income tax deduction for a portion of the fair market value of the home in the year of the gift and retains rights and duties of ownership for life.
Newport Hospital Foundation has suggested guidelines to ensure that real estate gift transfers go smoothly: property should be readily saleable so that the hospital does not incur undue carrying expenses; a qualified appraisal must be provided by the donor to substantiate the value of the property; and the real estate should be mortgage-free.
The Living Heritage Society
Newport Hospital’s Living Heritage Society honors our generous donors who have made a planned gift, or included the hospital as a beneficiary of their estate plan, retirement account, or life insurance.
If you have already designated Newport Hospital as a beneficiary of your estate plan, retirement account, or life insurance; please let us know so that we can welcome you as a member of the Living Heritage Society.
Membership benefits include:
- Recognition in hospital publications.
- Invitations to attend exclusive Living Heritage Society and other hospital events.
- Subscription to hospital publications to provide you with the latest hospital updates.
- Invitation to a VIP hospital tour.
- The knowledge that you are ensuring excellence in healthcare for future generations.
Tax ID Number: The tax id number for the Newport Hospital Foundation is 22-2535533.
For more information about planned giving, please contact Chris Josephson at 401-444-6412 or email firstname.lastname@example.org.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.