The following information provides an explanation of the various ways donors can plan significant gifts to the campaign while taking full advantage of the income and estate tax benefits allowed under the law. Campaign volunteers will be trained in how to recognize when it might be appropriate to solicit such a gift, and in how to respond appropriately when a prospect shows interest in making such a gift.
Print a Pledge Form or Donate Online
For Baystate employees:
Print a Pledge Form or Donate Online
Cash: Gifts of cash, paid outright or pledged over a suggested five year period*, provide immediate
support for Baystate. Those who itemize their income tax returns are entitled to a charitable deduction of up to 50% of annual adjusted gross income, with a five-year carry-over period for the excess. Donors also are encouraged to match their gifts if their company/employer offers such a program.
* Both variable levels and length of pledge payments can be negotiated in order to encourage donors to
consider making an impactful gift. For example, payments can be smaller for the initial years and ballooned towards the end of the payment period. Under special circumstances, payment periods more than five years will be considered.
Securities: Gifts of long-term, appreciated securities provide the same benefits as cash and offer the donor the additional benefit of paying no capital gains tax. The contribution is based on the mean value of the stock on the day it is transferred to Baystate. The donor is entitled to a charitable deduction up to 30% of annual adjusted gross income (with five-year carry-over) thereby avoiding the capital gains if the securities were sold privately.
Closely-Held Stock: A charitable gift of stock in a closely-held corporation with no ready market
price requires a partial appraisal summary or in the case of gifts over $10,000, a qualified appraisal
to determine the value of the gift. The donor receives a charitable deduction based on the appraised value of the stock, incurs no capital gains tax liability and can claim a deduction equal to 30% of his/her adjusted gross income (with a five-year carry-over.)
Life Income Gifts
Charitable Gift Annuity: In exchange for a gift of cash or securities, Baystate can provide a donor with income for life through a charitable gift annuity contract. The annuity rate is based on the age(s) of the annuitant(s), the donor, and/or another person. When exchanging appreciated stock for a gift annuity, no immediate capital gains tax is incurred on the transfer; part of the annuity payment will be tax-free; and the donor will receive an income tax deduction based on the hospital’s remainder interest in the gift.
A Gift in Trust: Many options with associated benefits exist in creating a charitable trust arrangement which suits a donor’s unique circumstances and can provide income for life or a term of years. For example, a donor can choose a fixed or fluctuating payment, the rate of such payment, as well as many other features. No capital gains tax is incurred on the transfer of appreciated assets (securities or real estate) and the donor receives an immediate income tax deduction for part of the gift. As with all life income plans, the funds are distributed to Baystate upon the death of the life income beneficiary (ies).
Charitable Bequests: A gift by will offers estate tax savings and creates a living legacy to help
ensure a secure future for Baystate. If the donor is 70 years of age or older, the hospital will
honor such intentions to provide a charitable bequest to the campaign by giving full gift credit
for the documented value of the bequest.
A Gift of an Income Stream: A donor can provide annual payments to Baystate from assets which later will be distributed to one’s heirs. Known as a charitable lead trust, this plan allows the donor to direct income payments to the hospital for a specific number of years. At the end of the trust’s term, assets are transferred to the donor or a family member (usually, the next generation). Any appreciation of the asset realized during the term of the trust passes tax-free.
Please contact Susan Toner at 413-794-4288 for more information.