Gift Planning
Gift Planning provides the opportunity to make a more substantial gift than originally thought possible while maintaining assets for family and giving less to the government in the form of taxes. Utilizing various giving techniques allows you to create ways to continue your giving to The Free Clinic now and upon your death. Gift Planning involves integrating a donor’s charitable gift into his or her overall financial, tax and estate planning objectives to maximize the benefits for both the donor, their family and The Free Clinic. The information contained here is for educational purposes only. You should consult with your own tax or legal advisors to explore the benefits to your particular situation prior to making any planned gift.
All of these types of gifts can be used to support the exempt purposes of The Free Clinic or can be added to the Endowment. The staff welcomes the opportunity to discuss these options with you.
Gifts By Will - Requests
A gift by will (a bequest) is one of the oldest, easiest and most effective means to ensure you fully provide for your family, that your assets are distributed as you wish while making a charitable gift. Many friends have remembered The Free Clinic in their wills and still provided substantial support for their family while providing continuing support to the ongoing work of The Free Clinic.
A gift to The Free Clinic through your will has several advantages:
- Charitable gifts made through your will are 100% deductible for estate tax purposes.
- A charitable bequest may place your estate in a lower estate tax bracket.
- You may specify that your bequest be used for the general purposes of The Free Clinic or for a particular area of interest.
Bequests to The Free Clinic can be made when your will is first created or revised or after it is completed through the execution of a Codicil. Bequests give you the opportunity to express your wishes as to where, to whom and in what order your assets are to go.
The staff of The Free Clinic is available to discuss your wishes and help you create bequest language. Remember to always use the legal name: The Free Medical Clinic of Greater Cleveland. Some suggested sample bequest language follows:
Specific Bequest
I give, devise and bequeath to The Free Medical Clinic of Greater Cleveland, the sum of $_______ OR _______% OR the remainder of my estate, or the following described property _______, OR after all other specific bequests are made, I give, devise and bequeath to the Free Medical Clinic of Greater Cleveland all OR _______% of the rest, residue and remainder of the estate, to be used for its exempt purposes.
Life Insurance
Gifts of Life Insurance Policies are a simple and quick way to make a substantial gift in support of The Free Clinic’s programs and mission. Donating an existing policy does not affect your cash flow nor requires you to decrease your savings. Whether you have an existing policy that is no longer needed or purchase a new policy specifically to donate, contact the company holding your policy to request a change in beneficiary and owner of the policy to complete the gift. You may also choose to donate another asset and purchase a new policy for the benefit of your heirs to replace the asset given to the Free Clinic. Thus your family’s inheritance does not decrease and in many instances can increase.
Real Estate
Real estate often appreciates in value and selling it may result in your paying large capital gains taxes. You can donate your residence, condominium, vacation home or other investment property to The Free Clinic resulting in an income tax deduction for yourself and your estate. This is an opportunity to give more than you originally thought possible.
Retirement Assets
An IRA, Keogh, 401(k), 403(b) or other type of retirement plan asset results in the payment of high income and estate taxes since you’ve accumulated the funds tax free. You can name The Free Medical Clinic of Greater Cleveland as a beneficiary of all or a specified percentage of your plan’s assets to eliminate both income and estate taxes. You can also divide this asset amongst your family, The Free Clinic and other charities. NOTE: designating a specific dollar amount, as opposed to a specified percentage, will result in the inclusion of these funds in the gross income of our estate.
Charitable Reminder Trust
The charitable remainder trust is an attractive method of achieving a variety of goals while ensuring income for life for yourself and your heirs. What’s more, many have found comfort in knowing that after their lifetime, the property remaining in the trust will be used by the Free Clinic explicitly as they specified. Trusts are wonderful to use for handling retirement assets or converting securities to income producing property.
Charitable trusts can be created during your lifetime or through estate plans. Each trust is tailored to fit the specific financial and philanthropic goals of the individual. The two types of charitable remainder trusts are: Unitrust – where income fluctuates annually with the fair market value of the trust and Annuity Trust – where income payments are fixed and determined when the gift is made. Each provides you with a charitable tax deduction.
There are many advantages of a Charitable Remainder Trust. For example, you receive income for life, avoid capital gains tax if the trust is funded with appreciated securities, and receive immediate charitable income tax deductions. In addition, there is the possibility of reducing your estate tax, and, of course, the deep feeling of satisfaction gained by supporting The Free Clinic.
Both types of trusts allow you to attain your own personal financial objectives while making a significant gift to The Free Clinic. The best type for you depends on your own individual needs.
Charitable Gift Annuities
This type of gift allows you to make a gift, receive a charitable income tax deduction and receive guaranteed fixed payments for the rest of your life. If you are interested in this type of gift, please contact our development department for further information. They will be able to provide you with a sample of the financial benefits to you.
For more information, please This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call our development office at (216) 707-3418.
