Summer Soiree

Planned Giving at Newport Hospital

You can use Planned Giving to provide meaningful support for Newport Hospital and carry on the tradition of philanthropy that supports our unyielding pursuit of excellence in patient care, respect of the individual, and the creation of a measurably healthier Newport County. Without this crucial support the hospital would not be able to provide the high level of care and commitment, for which we are renowned, to our patients and the community.

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.
 

How It Works 

Through a simple contract, you agree to make a donation of cash, stocks or other assets to Newport Hospital. In return, you or a loved one receive a fixed amount each year for the rest of your lifetime.   

Example based upon a donor 72 years of age establishing a $10,000 immediate payment charitable gift annuity with cash

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

Newport Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.

 

In addition to providing a gift to Newport Hospital 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.

 

* Minimum gift amount $10,000


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 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.

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.

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

Newport 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, Newport 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 Newport Hospital can agree to pay.  In most cases, part of each payment is tax-free, increasing each payment's after-tax value.

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 Newport Hospital.  Your estate will be entitled to a charitable deduction for the full, fair-market value of your gift.

Sample language for an outright bequest:

I give Newport Hospital, Newport, Rhode Island _____ dollars ($_____).

I give Newport Hospital, Newport, Rhode Island ___ percent (___%) of my estate.

 

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 a contingent bequest:

I give, devise, and bequeath to my brother, John Doe the sum of _____ dollars ($_____). In the event he shall predecease me, I direct this sum be paid to Newport Hospital, Newport, Rhode Island.

 

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.

Newport Hospital tax identification number is 05-0258914.

 

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 Newport Hospital.

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

Benefits:

  • 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.

Example based upon two lives aged 65 and 66 with appreciated securities of $100,000 with a cost basis of $25,000

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

Newport Hospital will receive remaining principal when trust ends. May reduce estate taxes and costs.

Did you also 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 Newport Hospital and transfer assets to your heirs—with significantly reduced tax consequences.

 

Charitable Lead Trusts

This gift option is the opposite of a charitable remainder trust. A donor places assets in a trust to generate annual income for Newport Hospital, 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 include:

  • Provides initial annual support for Newport Hospital.
  • 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.

Assets Information: Cash, Securities, and Real Estate

Cash

Cash is the easiest of all assets to transfer in order to fund a life income gift to Newport Hospital. 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. Learn more about donating securities and/or mutual funds.

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 Newport Hospital  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 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.

Donor Story: Jim Purviance

Jim PurvianceJim Purviance, a Newport resident since 1977 and a stockbroker at Barrett & Company in Providence, knows the value of a good investment. Over the years he has invested in Newport Hospital in many different ways. He has been a governor since 2000 and a board member since 2002, and now serves on the Lifespan investment committee. Jim has also served on the finance, development and quality committees. He has invested his time, talent and treasure to make Newport Hospital a better place.

When asked why he named Newport Hospital in his will, Jim said, “Whether someone is considering living here or opening a business, or is simply interested in the future of this city, there are certain things to consider, such as the school system and the quality of our health care system. They want to know that our community hospital is highly regarded and is properly funded. The availability of good health care here on the island is something that everyone needs and it contributes to the quality of life. With the changes occurring nationally in health care, it is now more critical that we have a state-of-the-art facility.”

He adds, “Newport Hospital has always served as a safety net for individuals who, for one reason or another, are unable to fund their medical care. That is how this hospital began, and we have a responsibility to make sure that it can continue to fulfill its mission. You can make a case for supporting many of the nonprofit organizations in our community, but Newport Hospital should be a top priority, as everyone needs immediately available superior health care.”

 

11 Friendship Street | Newport, RI 02840 | 401-846-6400 | Email Us | Terms of Use | Privacy | Corporate Compliance ©2017

Connect with Us:  | Facebook |  |  Share