Whether your client is planning for today or far in the future, whether it is personal involvement that’s desired or an “automatic” system, we have the experience to provide counsel and the resources to make the process stress-free.
Here is an easy guide – 7 key questions — to help your clients define financial, charitable and lifetime goals:
Any of these types of assets can be used to establish a fund at Excellence or contribute to one.
Cash. Because it is so simple, giving via check, wire transfer and other forms of cash is the most popular option. You can give as much or little as you want or combine multiple gifts to establish a fund. A gift of $100,000 or more establishes an endowed fund of your choice that begins generating income for grants immediately and continues in perpetuity, or you can establish a donor-advised fund.
Stocks, bonds or mutual funds. A gift of long-term appreciated holdings may yield greater tax benefits than cash of equivalent value, especially if they have a low cost basis. The deduction you receive is for the full market value of your holdings, even if you bought for far less. You would also pay no capital gains tax, which is otherwise due with a sale of stock, bonds or mutual funds. Closely held stocks are also a good option for giving. You can combine multiple gifts, all of which will reduce the size of your estate.
Real estate and personal property. Real estate of any kind — a home, a farm, a commercial property, undeveloped land – makes a welcome charitable gift. Tangible personal property, like art, antiques, rare books, gems or collections, is also an excellent option for giving. Gifts of real estate or personal property incur no capital gains tax and qualify for a deduction based on the original investment. They reduce your taxable estate while relieving you and your heirs of the difficulties of selling property.
Converting a private foundation. So often, families who establish private foundations come to dislike the complexities and expense of administration. If you convert a private foundation to an Excellence fund, you can focus solely on the part you love most – grant-making!
All of these methods are ways to make a planned gift and help your client accomplish his or her charitable goals.
Charitable bequests. Gifts made through wills or trusts are the cornerstone of philanthropic tradition, allowing you to make more significant contributions than at any other time. Bequests can be used to establish any kind of fund or to give to an existing fund. Remembering us in your will may reduce your estate taxes while supporting a cause that needs your help. Give a specific dollar amount, property, a percentage of your estate or a remainder gift: what is left over after bequests to family and friends.
Retirement plan assets. One of the most efficient tax strategies is to transfer retirement plan assets to a charitable fund upon your death. Deferred income tax and estate tax can reduce retirement assets to your heirs; in some cases, the combination can reach as high as 80%. By leaving retirement assets to a fund at Excellence, you can preserve 100% of your hard-earned assets for the good of the mental health community – forever. Naming Excellence as a beneficiary is as easy as adding a sentence like this to your IRA beneficiary form: “I leave x% of my assets to the Foundation for Excellence in Mental Health Care (FEMHC), a nonprofit corporation, to be used to enhance (or create) a component fund (to be) known as the X Fund.”
Life Insurance Policies. Giving a life insurance policy is a simple, inexpensive way to make a substantial contribution. It’s easy — name Excellence as the beneficiary and the death benefit will go to Excellence tax-free while your estate receives a tax deduction. Or donate a paid-up life insurance policy to Excellence to receive a current income tax deduction equal to your basis in the policy or the policy value, whichever is less. A third option is to transfer an existing policy or buy a new policy on your life naming Excellence as the owner and donating enough to Excellence every year to pay the annual premiums.
Charitable lead or remainder trusts (CLTs and CRTs). Charitable trusts allow you to “donate the milk and keep the cow.” You make significant gifts now while transferring wealth to your heirs at reduced gift and estate tax rates (CLT) or providing a lifetime income for yourself or your heirs (CRT). Through the trust, you determine how much will be paid to Excellence and for how long. The principal that remains after the trust ends will revert to you or a person you name. Charitable trusts effectively exclude assets – and their subsequent appreciation – from your taxable estate while ensuring that mental health reform receives significant charitable support. Minimum to establish a CLT or CRT: $150,000.
We make it easy to do more with your contribution.
Excellence Donor-Advised Funds
A donor-advised fund allows you flexibility, influence and involvement
Private foundations require substantial assets and a dedicated administrative infrastructure
Commercial Charitable Gift Funds
Available through banks and investment companies, comparatively less flexible
8532 SW St. Helens Drive, Suite 250
Wilsonville, Oregon 97070
The Foundation for Excellence in Mental Health Care is a registered 501(c)(3) charity.
Donations to any of our funds are tax-deductible to the full extent of the law. Tax ID: 27-4682873. A copy of our latest 990 may be obtained here.
Or by writing to the Oregon Department of Justice, Charitable Activities Section,
1162 Court Street NE
Salem, Oregon 97301-4096