Rhode Island Hospital

Planned Giving at Rhode Island Hospital

RIH donor wall
Planned giving provides a meaningful opportunity to support Rhode Island Hospital. This philanthropy enables the hospital to focus on our unyielding pursuit of excellence in patient care, pioneering research and medical education, and technology.

Leave a Lasting Legacy

Planned giving offers many options to help you make a charitable gift while deriving financial benefits, including income for life for you or another, and an immediate one-time charitable income tax deduction for a portion of your gift (in the year of the gift.) In many cases a planned gift can allow a donor to make a stretch gift and receive an income stream in return.

Bequests

Outright Bequests

The outright bequest is the simplest means of making a gift at your death. When you draft your will simply direct that a specific amount or percentage of money, property, or other holdings be transferred to Rhode Island Hospital.  Your estate will be entitled to a charitable deduction for the full, fair-market value of your gift.

Contingent Bequests

The contingent bequest provides for family and friends and will benefit the hospital only if the named beneficiaries predecease you.

Sample language for bequests

"I give to Rhode Island Hospital Foundation for the benefit of Rhode Island Hospital in Providence in the State of Rhode Island, and Providence Plantations, a Rhode Island nonbusiness corporation with a place of business in Providence, Rhode Island [written amount or percentage of the estate or description of property], income and principal to be applied in its discretion for its general uses and purposes."

Living Trust

Just as in a will, a living trust can specify charitable donations by a specific sum, a percentage, specific asset or residual amount. Assets in living trusts are not sheltered from possible estate tax because the trust can be changed at any time.

Rhode Island Hospital Foundation tax identification number is 05-0468736.

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.

Charitable Gift Annuity

 How It Works

Through a simple contract, you agree to make a donation of cash, stocks, or other assets to Rhode Island 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.

charitable gift annuity

Benefits

  • 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. Rhode Island Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.

In addition to providing a gift to Rhode Island 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.

Your Rate

Generally, the older you are at the start of your payments, the higher your payments.

These rates are the maximum rates recommended by the American Council on Gift Annuities and are adjusted periodically.

Your planned giving rates

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, Rhode Island 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.

deferred annuity

Benefits

  • 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. Rhode Island Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.

Your Rate 

Generally, the older you are at the start of your payments, the higher your rate.

Rates are recommended by the American Council on Gift Annuities. Actual calculations will vary based on the date of birth and the date of the gift.

Don’t know when you want payments to start?

Consider a Flexible Deferred Payment Charitable Gift Annuity

In exchange for your irrevocable gift of cash, securities, or other assets, Rhode Island Hospital agrees to pay one or two annuitants you name a fixed sum each year for life, with payments starting at least one year after your gift.  The annuitants may elect to start receiving payments on any one of a range of dates.  These dates and their corresponding payment amounts will be listed in your agreement.  The older the annuitants are at the time of the gift and the longer you elect to defer payments, the greater the fixed amount Rhode Island Hospital can agree to pay.  In most cases, part of each payment is tax-free, increasing each payment's after-tax value.

Charitable Lead Trust

Did you know that now is the perfect time to create a charitable lead trust? Historically low IRS discount rates provide a wonderful opportunity to make a gift to Rhode Island Hospital Foundation and transfer assets to your heirs—with significantly reduced tax consequences.

This gift option is the opposite of a charitable remainder trust. A donor places assets in a trust to generate annual income for Rhode Island Hospital Foundation, usually for a fixed number of years.  When the term of years ends, the trust terminates and the assets pass to the donor’s heirs.

Features of a Charitable Lead Trust

A charitable lead trust:

  • Provides initial annual support for Rhode Island Hospital Foundation
  • Allows you to transfer assets to your heirs with sharply reduced gift or estate taxes
  • Can be established either during your lifetime or through your will
Charitable Remainder Unitrust

What is a Charitable Remainder Unitrust?

With a charitable remainder trust, you or other named individuals can receive income each year for life or a period (not exceeding 20 years) from assets you give to the trust you create. Payments can be either variable or a fixed amount. After the life of the named individuals or the set period of years, the balance in the trust goes to support Rhode Island Hospital Foundation.

A charitable remainder unitrust can be arranged for gifts of $100,000 or more.

Benefits include:

  • Steady income for you or your chosen beneficiary for a fixed term of years, or for life.
  • Up-front capital gains tax avoidance.
  • A one-time charitable tax deduction for a portion of your gift.
  • Potential for increased income.

Below is an example based upon two lives, ages 65 and 66, with appreciated securities of $100,000 with a cost basis of $25,000.

Property Basis Chart

Benefits

  • Immediate. Charitable income deduction of $34,481.

  • Annual. First year payments of $5,000. Payments will vary in future and continue for lives of beneficiaries, ages 65 and 66.

  • Future. Rhode Island Hospital will receive remaining principal when trust ends. May reduce estate taxes and costs.

Cash, Securities, and Real Estate

Cash

Cash is the easiest of all assets to transfer in order to fund a life income gift to Rhode Island 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.

Real Estate

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 Rhode Island 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.

Rhode Island 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

Rhode Island 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 Rhode Island 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 Rhode Island Hospital publications.
  • Invitations to attend exclusive Living Heritage Society and Rhode Island Hospital events.
  • Subscription to Breakthroughs and Advancing Medicine. Touching Lives. with the latest hospital updates.
  • Invitation to a VIP hospital tour.
  • Assistance with making a visit to the hospital as worry-free as possible.
  • The knowledge that you are ensuring excellence in healthcare for future generations.

For more information about planned giving, please contact Chris Josephson at 401-444-6412 or email  chris.josephson@lifespan.org.