Here are a few ways to incorporate charitable gifts into your financial plans.
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Gifts by Will or Trust
A charitable gift from your estate is a favored method of giving that enables you to achieve your financial goals and benefit Froedtert West Bend Hospital. No other planned gift is as simple to make or as easy to change, should you ever need the assets during your lifetime.
A bequest may be right for you if:
- You want to make a gift to Froedtert West Bend Hospital.
- You want the flexibility to change your mind.
- You want continued access to your wealth, should you need it.
- You are concerned about outliving your resources.
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Naming Us as a Beneficiary
One of the simplest ways to make a gift to Froedtert West Bend Hospital is to designate Froedtert West Bend Hospital to receive your assets at the end of your lifetime. You can specify all or a percentage of the assets you want each beneficiary to receive. Often, it's as easy as filling out a form.
Beneficiary designations are an option for giving the following financial assets.
Retirement Account Assets
An alternative to a charitable bequest is to designate Froedtert West Bend Hospital as the beneficiary of your retirement account assets. This gift is simple because there is no need to modify your will or living trust. All you need to do is complete a beneficiary designation form with your plan administrator.
A gift of retirement assets has the added advantage of being a very tax-wise way to make an estate gift. This is because your retirement assets, if left to individuals, will be subject to income tax when they receive distributions and, for most non-spouses, those distributions must take place within 10 years, potentially pushing your beneficiaries into higher income tax brackets. If you give your retirement assets to a tax-exempt organization such as Froedtert West Bend Hospital, 100 percent of the retirement assets will be available for its charitable purposes. If you want to remember us in your estate plan, a tax-efficient strategy is to leave other types of assets — cash, securities, real estate — to your heirs and give the more heavily taxed retirement assets to Froedtert West Bend Hospital.
Note: Directing your retirement assets to both charitable and noncharitable beneficiaries can accelerate the income tax. Always consult with your advisors before naming the beneficiaries of your retirement assets.
Life Insurance
You can also use a life insurance policy to make a gift to Froedtert West Bend Hospital. It’s usually as simple as completing a form with the insurance company designating Froedtert West Bend Hospital as the beneficiary of all or a portion of the death benefit of your life insurance policy. As an alternative to naming Froedtert West Bend Hospital as the beneficiary, you can transfer ownership of the policy. Transferring ownership can produce an immediate income tax charitable deduction for the value of the policy and future income tax deductions if you continue to pay premiums on the policy.
Other Assets
Commercial Annuity Contracts: A commercial annuity will sometimes have a remaining value at the end of the annuitant’s lifetime. You can name Froedtert West Bend Hospital to receive all or part of this amount by designating us as a beneficiary (sole or partial) on the appropriate form from the insurance company.
Bank Accounts: You can instruct your bank to pay Froedtert West Bend Hospital all or a portion of what remains in a checking or savings account. Your bank can provide you with the appropriate beneficiary designation form.
Investment Accounts: You can instruct your investment company to transfer to Froedtert West Bend Hospital some or all investments held in the account at the time of your passing. Your broker or agent can help you complete the process, which may be as simple as amending the name on the account to include Froedtert West Bend Hospital.
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The IRA Gift (QCD)
Your IRA can provide a tax-smart way to make an impact with Froedtert West Bend Hospital Foundation now. The Qualified Charitable Distribution or QCD (sometimes called an “IRA Charitable Rollover”) is a great way to make a tax-free gift now to Froedtert West Bend Hospital and satisfy your Required Minimum Distribution (RMD), too.
How Do I Qualify?
The Qualified Charitable Distribution (QCD) offers multiple benefits for making gifts from your IRA.
- You must be 70½ years or older at the time of the gift.
- Gifts must go directly from your IRA to Froedtert Hospital and Medical College of Wisconsin.
- For 2024, total QCD gifts cannot exceed $105,000 per donor.
Benefits of Qualified Charitable Distribution
- If you don’t itemize your income tax deductions, a QCD offers all of the benefits of an itemized income tax charitable deduction
- If you are age 73 or older and must take a Required Minimum Distribution RMD, a QCD gift can satisfy your RMD without increasing your income taxes.
- You may direct your gift to a program or area of your choice.
- It is a wonderful way to create an immediate impact on Froedtert West Bend Hospital Foundation.
- It is a wonderful way to create an immediate impact on Froedtert West Bend Hospital Foundation.
How Can I Make an IRA Charitable Rollover?
Contact your IRA administrator to request a Qualified Charitable Distribution from your IRA to Froedtert West Bend Hospital Foundation.
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Stocks and Bonds
Make a gift of publicly-traded securities to Froedtert West Bend Hospital Foundation and potentially save income tax and capital gains tax, too.
A gift of publicly-traded securities could be right for you if:
- You own publicly-traded securities that you have owned for at least one year.
- Some of these securities have increased in value since you bought them.
- Some of these securities may provide you with little or no income.
- You would like to make a gift to Froedtert West Bend Hospital Foundation.
How It Works
- You transfer shares of one or more publicly-traded securities, such as stock, bonds, and mutual funds, to Froedtert West Bend Hospital Foundation.
- The two most common ways to give publicly-traded securities are to make an outright gift of your securities or to make a gift of your securities and receive payments for life.
To make a gift of stock, please call 262-836-7290 or e-mail [email protected].
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Retirement Assets
Your IRA, 401(k), 403(b), or other Qualified Retirement Plan can provide a tax-smart way to make an impact on Froedtert West Bend Hospital Foundation either now or after the end of your lifetime. The Qualified Charitable Distribution or QCD (sometimes called an “IRA Charitable Rollover”) is a great way to make a tax-free gift now to Froedtert West Bend Hospital Foundation and satisfy your Required Minimum Distribution (RMD) too.
A gift of retirement plan assets could be right for you if:
- You have an IRA or other Qualified Retirement Plan such as a 401(k) or 403(b).
- You do not expect to need all of your retirement plan assets during your lifetime.
- You have other assets, such as securities and real estate, that you want to pass to heirs.
- You want to provide income or payments to loved ones after you are gone.
- You would like to make a charitable bequest to Froedtert Hospital and MCW.
Option 1: Make a tax-free gift now with a Qualified Charitable Distribution (an “IRA Charitable Rollover”)
You can make a tax-free gift with a Qualified Charitable Distribution (QCD) from your IRA. (Other Qualified Retirement Plans such as 401(k)s and 403(b)s are not eligible). You must be at least 70½ years old to take advantage of this opportunity. Your QCD must go directly from your IRA administrator to Froedtert Hospital and MCW. The total of all of your QCD gifts for 2024 cannot exceed $105,000 per person however, your spouse with a separate IRA can also make a QCD of up to $105,000 in 2024 if they otherwise qualify.
The benefits of a QCD gift include:
- If you don’t itemize your income tax deductions, a QCD provides the tax benefits of an itemized income tax charitable deduction.
- If you are age 73 and must take a Required Minimum Distribution (RMD), your QCD gift can satisfy your RMD without increasing your income taxes.
- Your gift provides immediate support for the important work of Froedtert Hospital and MCW with a tax-free gift.
Option 2: Designate your remaining Qualified Retirement Plan assets as a contribution to Froedtert West Bend Hospital Foundation.
Another attractive option is to designate Froedtert West Bend Hospital Foundation as the recipient of some or all of what’s left in your IRA, 401(k), 403(b), or other Qualified Retirement Plan at the end of your lifetime.
In addition to having the satisfaction of making a significant future gift to Froedtert Hospital and MCW, your benefits include:
- Your estate is entitled to an unlimited estate tax charitable deduction for the value of your Qualified Retirement Plan donated to Froedtert West Bend Hospital Foundation
- Since Froedtert West Bend Hospital Foundation is tax-exempt, there will be no income taxes paid on the distribution to Froedtert West Bend Hospital Foundation.
- A tax-smart estate planning strategy is to contribute taxable Qualified Retirement Plan assets to Froedtert West Bend Hospital Foundation and preserve non-retirement plan assets for your heirs.
Note: Directing your Qualified Retirement Plan to charitable and noncharitable beneficiaries can accelerate the income tax. Always consult with your advisors before naming the beneficiaries of your Qualified Retirement Plan.
Option 3: Designate your remaining Qualified Retirement Plan assets for a life income plan.
Alternatively, you can designate that at the end of your lifetime some or all of the assets remaining in your IRA, 401(k), 403(b), or other Qualified Retirement Plan be used to fund a charitable remainder trust or charitable gift annuity that will make payments to family members or other loved ones for the rest of their lives. When the life income gift arrangement ends, what is left will go to Froedtert West Bend Hospital Foundation.
In addition to having the satisfaction of making a significant future gift to Froedtert Hospital and MCW, your benefits include:
- A charitable remainder trust or charitable annuity can provide a lifetime of income or payments to your chosen beneficiary.
- The gift portion of your charitable remainder trust or charitable gift annuity provides an estate tax charitable deduction if your estate is subject to estate taxes.
- A tax-smart estate planning strategy is to contribute Qualified Retirement Plan assets for a life income gift and preserve non-retirement plan assets for your heirs.
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Donor-Advised Fund
The donor-advised fund (DAF) is becoming an increasingly popular way to make a charitable gift. DAFs can provide you with immediate tax benefits while making your charitable giving easier.
Here are two simple ways you can make a gift through your DAF:
- Make an outright gift by suggesting a grant to Froedtert West Bend Hospital.
- Designate Froedtert West Bend Hospital to receive all or a portion of the fund value upon the termination of the fund.
You can select the option that best suits your philanthropic and financial goals to support the Froedtert West Bend Hospital. Just contact your fund administrator to request a distribution or beneficiary form or download the appropriate form(s) from your administrator’s website.
If you include Froedtert West Bend Hospital in your plans, please let us know and use our legal name and federal tax ID.
Legal Name: Froedtert West Bend Hospital Foundation
Address: 3200 Pleasant Valley Road, West Bend, WI 53095
Federal Tax ID Number: 39-2034296Creating a Donor-Advised Fund
Creating a donor-advised fund can provide you with immediate tax benefits while making your charitable giving easier for years to come.
How It Works
You establish a fund at a sponsoring charity. This could be a community foundation, a public charity with a donor-advised fund program, or even one of the well-known investment companies that sponsor donor-advised funds. First, check with the fund sponsor about the minimum contribution to start a fund as it ranges from $5,000 to $25,000. Then, make an initial contribution to start your fund of cash or appreciated assets such as stocks or mutual funds. You’ll get an immediate income tax deduction and some sponsors will even let you name your fund.
Once established, you can suggest that your favorite public charities, such as Froedtert West Bend Hospital receive grants from your fund. The grants can be relatively modest or larger for projects such as a capital campaign or a new building.
You do not get an additional tax deduction for these grants. You can also suggest which charities you want to have any remaining assets in your fund at your passing. Froedtert West Bend Hospital is grateful for gifts that come from donor-advised funds.
If you are considering establishing a donor-advised fund we can suggest several fund sponsors for your review. You should also consult your professional advisor for their guidance.