Planned Giving at Bradley Hospital
Planned giving allows donors to carry on the philanthropic tradition of George and Helen Bradley who had the foresight to create Bradley Hospital through a planned gift in honor of their only child, Emma Pendleton Bradley. Without this crucial support, the hospital would not be able to fulfill the vision Mr. and Mrs. Bradley had for the future of mental health care for children. It is only through the generosity of individuals like yourself that Bradley Hospital can continue to provide its renowned high level of care and commitment, and continue “Healing the hearts and minds of children and their families.”
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.
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 Bradley Hospital. Your estate will be entitled to a charitable deduction for the full, fair-market value of your gift.
The contingent bequest provides for family and friends and will benefit the hospital only if the named beneficiaries predecease you.
Sample language for bequests:
I hereby give, devise and bequeath [written amount or percentage of the estate or description of property] to Bradley Hospital Foundation located in East Providence, RI, income and principal to be applied in its discretion for its general uses and purposes.
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.
Bradley Hospital's tax identification number is 05-0258806.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
Charitable Gift Annuity
How It Works
Through a simple contract, you agree to make a donation of cash, stocks, or other assets to Bradley Hospital Foundation. In return, you or a loved one receive a fixed amount each year for the rest of your lifetime.
Below is an example based upon a donor 72 years of age establishing a $10,000 immediate payment charitable gift annuity with cash.
- 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. Bradley Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.
In addition to providing a gift to Bradley Hospital Foundation 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.
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, Bradley Hospital Foundation 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.
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. Bradley Hospital will receive remaining principal when annuity ends. May reduce estate taxes and costs.
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.
Charitable Remainder Unitrust
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 Bradley Hospital Foundation.
A charitable remainder unitrust can be arranged for gifts of $100,000 or more.
- 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.
Below is an example based upon two lives, ages 65 and 66, with appreciated securities of $100,000 with a cost basis of $25,000.
- 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. Bradley Hospital will receive remaining principal when trust ends. May reduce estate taxes and costs.
Charitable Lead Trust
A charitable lead trust is the opposite of a charitable remainder trust. A donor places assets in a trust to generate annual income for Bradley Hospital Foundation, 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
A charitable lead trust:
- Provides initial annual support for Bradley Hospital Foundation.
- 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
Cash, Securities, and Real Estate
Cash is the easiest of all assets to transfer in order to fund a life income gift to Bradley Hospital Foundation. 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.
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 Bradley Hospital Foundation 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.
Bradley Hospital Foundation 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.