Recognizing our Partners on National Philanthropy Day
The Central Valley Chapter of the Association of Fundraising Professionals presented the National Philanthropy Day awards recently, and four of the honorees are well known to Children's Hospital.
We acknowledge with gratitude their achievements, which have made a significant impact upon our community.
2014 Outstanding Philanthropists: Bill & Linda Smittcamp
2014 Outstanding Fundraising Organization: OCAT, Inc.
2014 Outstanding Youth Philanthropy, Age 5-7: Sundale Union Elementary
2014 Outstanding Fundraising Professional: Jane Fortune
Legacies of Healing
There are many ways to use charitable gift plans to meet a variety of needs. Through the use of charitable remainder trusts, for example, it's possible to achieve a number of goals all at one time.
For example: Mr. and Mrs. Johnson are planning to retire in two years. They would like to make a gift to Children's Hospital from their estate, but their immediate concern is ensuring they have sufficient funds to live on during retirement. They own securities worth $200,000 for which they paid $80,000 over the last 20 years. The securities now pay dividends of only one percent, or $2,000, per year. Of course, the Johnsons would like these assets to yield more. Instead of selling the securities and generating considerable capital gains tax liability on the $120,000 increase, the Johnsons decide to transfer them to a charitable remainder unitrust. The unitrust will pay them an income equal to 5 percent of the value of the trust assets each year.
Because the trust will not be liable for capital gains tax at the time it is created, the entire $200,000 will be available to earn for them. The first year they will receive $10,000 from the trust - five times what they now earn.
The Johnsons will receive a significant tax deduction of nearly $63,000 in the year the trust is funded. The money they save in taxes could be invested or used to purchase life insurance to help replace the assets placed in the trust. The Johnsons have gained higher retirement income, enjoyed significant tax savings, and have arranged a very generous gift to Children's Hospital Foundation.
If you are interested in making a gift like this, please contact Brad Stith, Director of Major Gifts and Planned Giving, at (559) 353-7196 or firstname.lastname@example.org.