Sometimes, our good intentions are stymied by lack of information! We do not want that to happen to Covenant HealthCare donors. So, we have developed this quick reference guide to assist you.
Current Gift - Your gift may be utilized immediately and you become eligible for a tax deduction in the year of the gift.
Cash, write a check or charge a credit card. Quick, easy, convenient.
Securities or Real Estate - Give long-term appreciated assets.
You receive an income tax deduction and avoid capital gains tax.
Bargain Sale - Sell to Covenant HealthCare real estate below market value.
This is part gift and part sale. You avoid capital gains tax on appreciation attributable to the gift portion.
Charitable Lead Trust - One type of CLT that provides payments to Covenant for a term of years, then pays the remainder to family members.
Recommended for anyone in high estate and gift tax brackets to benefit Covenant and pass principal to family with reduced estate or gift taxes.
A deferred gift is a planned contribution that you arrange now but that won't benefit Covenant until the end of your life. Type
Bequest - Through your will/trust, gift Covenant money, property or a share of estate residue.
A bequest can either be outright or contingent upon the death of a family member. Your gift could memorialize somone.
Life Insurance - Name Covenant the primary or contingent beneficiary - or transfer a policy to us.
This could be a policy you do not find necessary.
Qualified Retirement Plan - Designate Covenant as primary or contingent beneficiary of part or all of your qualified plan or IRA.
This gift avoids twofold taxation (income and estate taxes) on distributions after your lifetime.
Life Estate Agreement - Deed your personal residence or farm to Covenant, while retaining the use.
You avoid selling your property and secure current income tax savings.
Life Income Gift
These plans ensure you (and even a survivor) an income for life as well as substantial tax savings. You can convert low-yielding assets into a higher income stream. You transfer assets to the plan and Covenant receives the remainder after the beneficiary's lifetime.
Charitable Remainder Annuity Trust - Fund with cash, securities or other assets.
You receive payments of a fixed dollar amount for life.
Charitable Remainder Unitrust - Fund with cash, securities or other assets. You receive a fixed percentage of market value of trust assets, revalued annually.
Charitable Gift Annuity - Fund with cash or other assets.
You receive fixed payments for life based on gift amount and interest for your age.
Estate Gift Planning
Covenant HealthCare Foundation has developed a futuristic strategy for fund development that will continue to benefit Covenant Medical Center in the years to come. As we reach out to individuals, families, and companies that have a charitable intent, we ask each entity to consider a future gift from their estate that will benefit Covenant Medical Center. In every case, an estate gift is beneficial to the donor and the donee.
The staff at the Covenant HealthCare Foundation has placed an emphasis on bequests through a will or will/trust agreement. This tool is very common and is relatively easy for legal counsel to prepare.
Charitable Gift Annuities are contracts between the donor and the charity. These contracts can be written by the charity, thereby, eliminating legal fees while retaining the status of a legal, binding contract for the life of the donor(s). Charitable Gift Annuities are an income producing charitable gift that, oftentimes, has a very attractive interest rate that benefits the donor. Upon the death of the annuitant, the charity receives the remainder of the principal from the gift annuity.
Other recognizable charitable giving methods that Covenant would find acceptable are: Charitable Remainder Trusts, stock transfers, gifts of property, life estates, retirement plans and insurance policy beneficiary designations.
As you wish, the Covenant HealthCare Foundation staff will provide you with additional information about estate gift planning if you contact the Foundation Office at 989-583-7600 or email Carol Cottrell email@example.com. Tom Mueller at 989-583-7603 or firstname.lastname@example.org, and Ken Cichewicz at 989-583-7602 mailto:email@example.com
Sample Bequest Language for Covenant HealthCare Foundation
The Covenant Heritage
Covenant HealthCare Foundation has developed a donor recognition program for estate gifts. This program is based on the honor system to honor individuals or families that have included Covenant in their will or will/trust. Donors are invited to an annual luncheon that serves to recognize their future gifts and furthermore, Covenant Heritage donors are listed by name on the "Wall of Honor" at the Covenant Cooper and Harrison campuses.