Planned Giving
More Charitable Gift Planning Option
Appreciated Securities
A gift made with appreciated securities provides you with a charitable income tax deduction based on the securities' fair market value. You must have owned the securities for more than one year. In addition, you avoid the capital gains tax that would have been due to the government had you sold the securities yourself.
In addition to outright donations, appreciated securities are often donated to fund life income gifts.
It is generally not advisable to donate securities that have decreased in value. It is more to your advantage to sell the securities to establish a tax-deductible loss and then contribute the proceeds to UMMS.
We will be happy to provide you with tax and financial results for a gift of appreciated securtites - click here to send us an e-mail
Closely Held Stock
In addition to gifts of publicly traded, appreciated stock and bonds, it is possible to make gifts of appreciated shares of privately held securities. A gift made with closely held securities will provide you with the same charitable deduction and capital gains tax avoidance benefits as will a gift of publicly traded securities. UMMS can elect to sell the donated shares back to the corporation and use the proceeds for the purpose you select.
We will be happy to provide you with tax and financial results for a gift of closely held stocks - click here to send us an e-mail
Gifts in Kind - Tangible Personal Property
You may wish to give the University of Maryland Medical System items of tangible personal property such as artwork, rare books and manuscripts, museum-quality artifacts or antiques. Special rules apply to direct contributions of tangible personal property. Basically, three considerations must be met to ensure that your gift's full fair market value is deductible:
- The item must be related to the University of Maryland Medical System's
tax-exempt purchase (e.g., a painting to improve the atmosphere of a patient
room or waiting area) or must be usable in normal operations
- The donor must have owned the item for at least 12 months.
- The donor must obtain an objective "qualified" appraisal to determine the property's current fair market value.
In order to realize a charitable deduction for the full fair market value of the property, UMMS has to be able to use the property for a purpose that is related to its mission (related use). UMMS must review gifts prior to acceptance. The UMMS Foundation will respond to any inquires about prospective gifts of personal property to advise the contributor on the Medical System's potential interest and to assist in obtaining an a "qualified" appraisal.
The benefits of donating personal property:
- Gifts of tangible personal property avoid capital gains taxes on appreciated
property which has increased in value since its original purpose, providing
an important tax benefit for the contributor while aiding UMMS.
- Property that is of scholarly or aesthetic interest can be preserved.
- Items of special significance can be made directly available to scholars, students and the public for educational purposes.
We will be happy to provide you with tax and financial results for gifts in kind - click here to send us an e-mail
Real Estate - Outright or in Trust
Your personal home and other real property you own are among your most valuable assets. Often, these properties have appreciated substantially in value over time.
Real property can be donated outright or perhaps, you wish to stay in your home, but would like UMMS to benefit eventually from the value of your property.
An outright gift of real estate could provide a double tax benefit. Your income tax charitable deduction is based on the full fair market value of the property, and you can also avoid capital gains taxes on the appreciated portion of the value. Later on, the value of the property you give is sheltered from high estate taxes and probate costs.
You may also wish to make a gift of a "remainder interest" in your residence, vacation home, farm or ranch. This would allow you and your spouse to continue to enjoy the use of your property and still receive a sizable charitable deduction on your income tax return.
This gift, once made, is irrevocable, but it allows you to make a gift now while enjoying the use of your property and receiving substantial income tax benefits.
We will be happy to provide you with tax and financial results for gifts of real estate - click here to send us an e-mail
Retained Life Estate
You may wish to have property come to UMMS, but wish to have the use of the property (such as a residence or farm) during your lifetime. You can transfer ownership to UMMS during your lifetime and retain the use of the property. This type of gift plan is referred to as a gift with a retained life estate.
We will be happy to provide you with tax and financial results for a gift of retained life estate - click here to send us an e-mail
Bargain Sale
A bargain sale refers to a sale of property to a charity for a price that is less than the fair market value of the property (most often real estate). The gift is represented by the difference between the bargain sale price and the fair market value of the property based on a "qualified" appraisal. The charity realizes the full value of the property when it sells the property.
We will be happy to provide you with tax and financial results for a bargain sale gift - click here to send us an e-mail
Charitable Lead Trust
A charitable lead trust is a plan for giving that can transfer substantial assets to your children or others at a reduced tax cost by directing the income from those assets to go to the Medical System for a designated period of time. At the end of that period, the assets are returned to you, your heirs or other persons you name.
Assets that generate an income and that are likely to appreciate substantially over the life of the trust, typically 10 to 20 years or more, are most suitable for this type of arrangement. The assets that are most commonly used to fund a lead trust are securities such as appreciated securities and bonds or income-producing property that is likely to increase in value.
We will be happy to provide you with tax and financial results for a charitable lead trust - click here to send us an e-mail
Gifts of Retirement Plan Assets
Retirement plan assets make very effective testamentary gifts. Retirement plan assets include many types of retirement plans, the most common being IRAs, 401(k) plans, and 403(b) plans. Most often, upon the death of the plan owner, retirement plans are distributed directly to a beneficiary who is named to receive the plan assets on forms provided by the retirement plan.
These assets are often the first choice for a bequest because of the extra tax savings arising from the donation of these assets. Retirement plan assets may be subject to federal estate taxes. In addition, individuals who inherit retirement plans assets must report the distribution as income and pay income taxes.
We will be happy to provide you with tax and financial results for a gift of retirement plan assets - click here to send us an e-mail