Planning Your Philanthropic Legacy

Which Type of Planned Gift is Right for You

• Bequest

  A bequest is a simple yet powerful way to support Virtua Health’s mission through your will or trust. It involves designating a specific amount, a percentage of your estate, or a particular asset to Virtua Health Foundation in your estate planning documents.

  How does it work?

  • Include a specific directive in your will or trust document to leave a certain asset, a fixed dollar amount, or a percentage of your estate to Virtua Health Foundation (Tax ID: 04-372235).
  • You can choose to leave cash, stocks, real estate, or other valuable assets.
  • You can easily update or change your bequest at any time during your life.
  • Your estate will execute the bequest according to your will or trust instructions after your death.
  • Bequests can be contingent, residual, or specific, depending on how you wish to structure them.

  What are the benefits?

  • May lower the amount of taxes your estate will have to pay.
  • You keep control of your assets for your entire life.
  • Allows for flexibility in estate planning.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.

• Charitable Gift Annuity

  If you are looking for a way to support Virtua Health while also securing your own financial future, a charitable gift annuity may be right for you. By making a gift of cash or securities to Virtua Health Foundation through a charitable gift annuity, you can secure fixed payments for yourself or a loved one for life, while improving the health and wellness of your community.

  How does it work?

  • Make a gift of cash or securities to Virtua Health Foundation of $10,000 or more to fund a charitable gift annuity.
  • Virtua Health Foundation pays you (or up to two beneficiaries) fixed payments for life, based on your age and the amount of your gift.
  • You will receive an immediate tax receipt for part of your gift and a part of each payment may be tax-free.
  • Upon your death (or the death of your last beneficiary), the remaining principal goes to support Virtua Health’s mission.

  What are the benefits?

  • Increases your income and diversifies your portfolio now.
  • You receive payments that are partially or fully tax-free.
  • Can reduce your income tax or capital gains tax.
  • Avoids probate fees or estate taxes.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy to speak with an advisor who can prepare a personal life-income proposal for you at gratitude@virtua.org.

• Retirement Plans

  Naming Virtua Health Foundation as a beneficiary of retirement plan assets, such as an IRA, 401(k), or 403(b), is a tax-efficient way to establish a legacy of philanthropy and create estate planning advantages. You may also use retirement plan assets to make an immediate gift or one that pays you steady income for life.

  How does it work?

  • Name Virtua Health Foundation as a beneficiary on the beneficiary designation form of your retirement plan.
  • After your death, Virtua Health Foundation receives the amount you chose.
  • You can change your mind and update the beneficiary easily at any time during your life.
  • This gift will come from your estate’s most heavily taxed assets, leaving more favorably taxed property for heirs.
  • There is no limit on the amount of retirement assets you can leave.
  • You can make direct charitable rollovers of up to $100,000 annually from an IRA. This option is income-tax free and counts toward your minimum distribution.
  • Assets from other retirement plans such as 401ks can be used for direct charitable rollovers by first transferring them to your IRA and then from your IRA directly to Virtua Health Foundation.
  • You may fund a charitable gift annuity once with up to $50,000 from your IRA and it counts towards your required minimum distribution.

  What are the benefits?

  • Make a significant gift for the future without affecting your finances now or create a tax-advantaged income stream for life.
  • Avoids the potential double taxation (estate and income tax) on retirement assets left to heirs.
  • Reduces the tax burden on your estate and family.
  • Allows for flexibility and control over the distribution of your retirement assets.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.

• Charitable Remainder Trust

  A Charitable Remainder Trust (CRT) is a type of planned gift that allows you to convert assets into lifetime income, supporting both yourself and the mission of Virtua Health. This type of trust pays you, or others you choose, a stream of income for a period of time, after which the remaining assets are donated to Virtua Health Foundation.

  How does it work?

  • You place your assets such as cash, stocks, or real estate into a trust.
  • The trust pays you or your chosen beneficiaries a regular income for a set period.
  • After this period, or upon your passing, the remaining assets in the trust are donated to Virtua Health Foundation.
  • You can choose how often the trust pays out – whether it be yearly, quarterly, or even monthly.
  • The trust can be set up to last for your lifetime, a specific number of years, or until a certain event happens.

  What are the benefits?

  • Provides you or your loved ones with a steady income stream.
  • Can offer significant income and capital gains tax breaks, both immediately and in the future.
  • Allows you to make a commitment now to support Virtua Health Foundation in a substantial way in the future.
  • Offers you the flexibility to change your beneficiaries if needed.
  • Gives you the satisfaction of knowing your assets are being used for a good cause.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.

• Donor-Advised Funds

  Donor-advised funds are like a personal fund for your charitable giving. You put money into the fund and then recommend how it should be distributed to charities like Virtua Health Foundation over time. Donor-advised funds offer a flexible and convenient way to manage your philanthropy.

  How does it work?

  • You make an irrevocable contribution of personal assets to a donor-advised fund.
  • Immediately receive a tax deduction for the year of your contribution.
  • You can then recommend grants from the fund to the qualified charities that are important to you.
  • The fund is managed by a sponsoring organization, who oversees the fund’s investment and administration.
  • You can continually add to the fund and involve family members in the decision-making process.

  What are the benefits?

  • Simplifies your charitable giving and record-keeping.
  • Offers immediate tax benefits and potential for tax-free growth of contributions.
  • Provides flexibility in supporting multiple charities from one source.
  • Encourages family involvement and a legacy of giving.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.

• Family Foundations

  A family foundation is a private, non-profit 501(c)3 organization set up to manage your charitable giving as a family legacy. It is a formal and structured way to create multi-generational support for the causes you and your family care most about.

  How does it work?

  • You set up a foundation and fund it with assets, which can include cash, stocks, or other property.
  • Through the foundation, you then make grants to charities based on your family’s interests.
  • Family members can be actively involved in running the foundation and making decisions.
  • The foundation can operate indefinitely, extending your family’s philanthropic impact for generations.
  • A family foundation runs just like a small charity, with its own set of rules and regulations. It requires adherence to certain legal and operational regulations, including annual grant-making and reporting.

  What are the benefits?

  • Creates a multi-generational family legacy of giving and community support.
  • Provides significant tax benefits, both in income and estate taxes.
  • Offers a structured way for your family to be actively involved in philanthropy, working together on something meaningful.
  • Allows for personalized, focused charitable efforts on the causes you care most about.
  • Can serve as a tool for teaching future generations about the value of philanthropy and social responsibility.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your family to help ensure your giving accurately reflect your wishes.

• Appreciated Securities

  Donating appreciated securities, such as stocks, bonds, or mutual funds, is a tax-efficient way of supporting Virtua Health Foundation. This type of planned gift can be more beneficial than giving cash, as it involves donating securities that have increased in value over time.

  How does it work?

  • You transfer stocks, bonds, or mutual funds that have appreciated in value to Virtua Health Foundation.
  • Virtua Health Foundation can then sell these securities without incurring capital gains taxes.
  • You can donate securities held for more than one year directly to Virtua Health Foundation.
  • You receive a receipt for tax deduction from Virtua Health Foundation for the market value of the securities at the time of the donation.

  What are the benefits?

  • Avoids capital gains tax on the appreciation of the securities.
  • Offers a charitable income tax deduction based on the fair market value of the securities.
  • Potentially increases the amount of your support compared to selling the securities and donating cash.
  • Provides an opportunity to rebalance your investment portfolio.
  • Supports the mission of Virtua Health Foundation in a tax-efficient manner.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.

• Real Estate

  Donating real estate, such as a home, vacation property, or undeveloped land, can be an efficient way to contribute to Virtua Health’s mission. This type of gift can be particularly advantageous if the property has appreciated in value.

  How does it work?

  • You donate property directly to Virtua Health Foundation.
  • Virtua Health Foundation can use the property for its mission-driven purposes or sell it.
  • The process involves legal documentation, such as a deed transfer.
  • An appraisal is typically required to establish the property’s fair market value.
  • You will need to ensure there are no encumbrances or liens against the property.

  What are the benefits?

  • Avoids capital gains taxes on appreciated property.
  • Provides a charitable income tax deduction based on the property’s current market value.
  • Releases you from the responsibilities of owning and managing the property.
  • Can significantly boost the resources for community support available to Virtua Health.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.

• Life Insurance Policies

  Donating a life insurance policy that you no longer need can be a meaningful way to support Virtua Health’s mission. This type of planned gift is often overlooked but can be a powerful tool in charitable giving.

  How does it work?

  • You name Virtua Health Foundation as the beneficiary, or co-beneficiary of your life insurance policy.
  • You can also transfer the ownership of the policy to Virtua Health Foundation.
  • Virtua Health Foundation may choose to cash in the policy or hold on to it.
  • If you transfer ownership, you may continue to pay the premiums on the policy.
  • The gift arrangement is documented with both the insurance company and Virtua Health Foundation.

  What are the benefits?

  • Provides a significant future gift to Virtua Health with potential current tax benefits for yourself.
  • If you transfer ownership, you can receive a charitable income tax deduction for the policy’s cash value.
  • Continuing to pay premiums can increase your tax deduction.
  • Offers you a way to make a substantial difference with a small annual cost.
  • Creates an enduring legacy of philanthropy at Virtua Health.

  Next Steps

  • We’re here to help! Contact Virtua’s Office of Philanthropy at gratitude@virtua.org and a member of our team will guide you and your advisors to help ensure your plans accurately reflect your wishes.