Planned Giving

The UMMS Foundation is grateful for the many gifts it has received over the years from grateful patients and friends through their estate plans. These gifts have supported capital projects, cutting-edge research, continuing education programs and much more. They come to UMMS Foundation by way of bequests or as life income gifts. A planned gift can have dual impact with thoughtful planning: it can provide for you and your family and, at the same time, secure a strong future for our institution.

Under the 2018 tax law, it can pay to make a philanthropic gift. The charitable deduction is the only widely-used deduction that is not limited under the new legislation. In some cases, tax benefits are even expanded under the deduction.

To learn in more detail about gift planning opportunities, please complete and submit this form. Or you may call 410.328.5770 or email umms-foundation@umm.edu.

The following are common methods of giving that have been revised under the new law and offer potential tax benefits:

Gifts of Cash

For cash gifts, the new tax law expands the deduction limit. Previously, gifts of cash could eliminate tax on up to 50 percent of the adjusted gross income each year. Now, the amount increases to 60 percent. Any amount not deductible in a given year can be used to reduce income taxes for up to five additional years. For those who itemize their deductions, a charitable gift may reduce federal and state income taxes.

In addition, the law repealed a provision that requires higher income taxpayers to reduce their itemized deductions by a percentage of their income, which caused some donors to lose up to 80 percent of the value of their deductions. Now, donors previously affected by this limitation can enjoy the full value of their deductions.

Gifts of Securities

The new law retains special tax benefits when giving securities. Donors should consider donating securities if they have owned stocks, mutual funds, and other securities for more than one year, and if those securities have also increased in value.

Donors may still claim a deduction for the full market value of these securities, not just the amount paid, and are not required to pay capital gains tax that would be owed if they sold the securities and donated the proceeds.

Giving securities that have increased in value but yield little income is another way to make meaningful gifts and enjoy additional tax savings while experiencing little or no reduction in spendable income. However, when considering the donation of a security for which the value is less than its cost, it is typically best to sell the security and make a charitable gift of the cash proceeds.

Gifts of Estate

Under the new law, fewer estates are subject to estate tax. The amount that can be left to heirs free of federal estate and gift taxes has increased to approximately $11.2 million for individuals and $22.4 million for married couples. Even for estates still subject to tax, all charitable gifts from the estate remain fully deductible.

As a result of reduced estate taxes, it is no longer necessary for most donors to set aside funds for payment of taxes on gifts to individuals. It may now be more practical to use all or a portion of your tax savings to fund charitable gifts as part of your estate plans. Your heirs will still receive the same amount or more than they would have after paying taxes under the prior law.

Gifts of Retirement Funds

The special tax incentives from making a gift from a retirement account remain substantially unchanged. In cases of a traditional or Roth IRA, individuals age 70 1/2 and older may directly transfer tax-free gifts up to $100,000 per year to a qualified charitable recipient, known as a Qualified Charitable Distribution. The amount given will count toward the donor’s annual required minimum distribution but will not count as income.

This option can be especially attractive to those who do not itemize tax deductions or want to keep reportable income down to avoid social security and other income taxed at a higher rate.

 

Your financial and philanthropic goals can determine the type of planned gift that is best for you. There are many giving opportunities available to leave a lasting legacy to the UMMS Foundation, including:

Bequests

Appreciated Securities

Life Insurance

Real Estate

Retained Life Estate

Retirement Plan Assets

Charitable Lead Trust

Charitable Gift Annuities Trust

Charitable Remainder UniTrust