How it works:

1 - You transfer securities to the Healthcare Charities Trust
2 - Healthcare Charities sells your securities and uses the proceeds for the EMHS member and program of your choosing

Benefits:

• You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
• You pay no capital gains tax on the securities you donate.
• You can direct your gift to a specific fund or purpose.
• You have the satisfaction of making a significant gift now or funding a life-income gift that benefits an EMHS member later.
• If your security is held in a brokerage account, please call or ask your broker to contact us for electronic transfer instructions.

If you hold the stock certificate, mail it to Healthcare Charities using the following procedure:

• Mail the unsigned certificate by certified mail to Healthcare Charities, Attention: Michael R. Crowley, One Cumberland Place, PO Box 931, Bangor, ME 04402-0931. Be sure to include a letter designating how you would like your gift to be used. In a separate envelope, mail a signed Irrevocable Stock or Bond Power (PDF, type in form and then printout) and a signed Security Release (PDF, type in form and then printout) by ordinary first class mail to the same address as the certificate. 
  
   Download Stock & Bond Power Form (PDF) 
   
• Please call our office (1-866-839-4483) with any questions or for further instructions on donating securities or transferring securities electronically to Healthcare Charities. 
• Be sure to keep acknowledgements and other records of your gifts to assure that you can use your deductions. This is especially important for gifts of $250 or more. 

When securities have decreased in value:

• If the value of your securities is less than their original cost, it is usually better to sell them and make a charitable gift using the cash proceeds. You may then be able to claim tax benefits for both the capital loss and the charitable gift, effectively deducting more than the current value of the assets.

How it works

1- You can provide now for a future gift to Healthcare Charities and an EMHS member of your choice by including a bequest provision in your will or revocable trust.
 
2- Healthcare Charities receives the gift, and applies it to the EMHS member and  purpose(s) you specified.

Benefits

• Your assets remain in your control during your lifetime.
• You can modify your bequest if your circumstances change.
• You can direct your bequest to a particular purpose (be sure to check with Healthcare Charities to make sure your gift can be used as intended).
• There is no upper limit on the estate tax deductions that can be taken for charitable bequests.
• You know that your gift will benefit Healthcare Charities and an EMHS member tomorrow just as you intend it to today.

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How it works

1- You send a check, wire funds, or contribute online to Healthcare Charities.

2- We use your donation for the purpose(s) you specify.

Benefits

• Use the simplest asset to make your donation — no appraisal or acceptance requirements as with gifts of appreciated property.
• Deliver a gift that an EMHS member can use immediately.
• Receive a full charitable deduction, and apply it against a larger percentage of your taxable income than a deduction for a property gift.

When Making a gift with a check, please do the following:

Make the check payable to Healthcare Charities
Indicate the EMHS member and area of support on the memo line of the check or include a letter of instruction stating what you wish to support or how you wish the gift to be used.
Send the check to the Healthcare Charities, One Cumberland Place, PO Box 931, Bangor, ME 04402-0931.

Cash donations allow you to eliminate tax on up to 50% of your adjusted gross income each year. Any amounts not deductible in the year of the gift can be carried over and bring you savings in as many as five future years. Be sure to keep acknowledgements and other records of your gifts to assure that you can use your deductions. This is especially important for gifts of $250 or more.

Cash may be wired directly from your brokerage account to Healthcare Charities. Please call our office (1-866-839-4483) for transfer instructions.

Gifts can be made through your Visa, Mastercard, Discover, or American Express card by calling our office (1-866-839-4483) with your card information or on our Secure Online Giving Form.

Donors are advised to discuss the potential benefits and consequences of making charitable gifts with an attorney, financial, or tax advisor.

Charitable Gift Annuities

How it works

1- You transfer cash or securities to an EMHS member through Healthcare Charities 
2- Healthcare Charities pays you, or up to two annuitants you name, a lifetime annuity. 
3- The principal passes to Healthcare Charities when the contract ends.

Benefits

• You receive an immediate income tax deduction for a portion of your gift.
• Your lifetime annuity is backed by a reserve and the full assets of Healthcare Charities
• Your annuity payments are treated as part ordinary income, part capital gains income (15%), and part tax-free income.
• You have the satisfaction of making a significant gift that benefits you now and your local EMHS member later.

Click here for a rate table for one-life annuity or two-life annuity. Gifts of cash, securities, real estate or other appreciated property can be used to fund a gift annuity. There are no start-up fees, the donor qualifies for a substantial charitable tax deduction and capital gains taxes can be reduced and spread over a number of years.

EXAMPLE:

Paul is a 76-year-old who owns some highly appreciated but low-yielding stock. He can increase his income from the stock and benefit Healthcare Charities and an EMHS member at the same time. In exchange for $20,000 worth of stock, Healthcare Charities could guarantee him a 6.4% fixed annuity on his gift — $1,280 per year for the rest of his life. In addition, he could claim a $8,814 income tax charitable deduction and spread capital gains tax over a number of years. He can sign a fund description detailing how he would like the income from the remaining principal from his gift to be used to benefit an EMHS affiliate after his death.

Deferred Gift Annuities

1 - You transfer cash, securities or other property to an EMHS member through Healthcare Charities.
 
2- Beginning on a specified date in the future, Healthcare Charities begins to pay you, or up to two annuitants you name, fixed annuity payments for life.
 
3- The principal passes to Healthcare Charities when the contract ends.

Benefits

Deferral of payments permits a higher annuity rate and generates a larger charitable deduction.
You can target your annuity payments to begin when you need them, such as retirement or when a grandchild needs help with tuition payments.
The longer you defer payments, the higher the effective rate you will receive.
You have the satisfaction of making a significant gift now that benefits both you and an EMHS member in your community. 

EXAMPLE:

Maureen is a 55-year-old who wants to supplement her retirement income, to claim an income tax charitable tax deduction now while she's better able to use it and to help Healthcare Charities and an EMHS affiliate. If she puts $20,000 into a deferred gift annuity now, her current income tax deduction would be $5,454. When she is 65, the annuity will begin paying her $1,600 each year for life - a return of 8%. After her death, the income from the remaining principal will be used to help the EMHS member Maureen had hoped to assist.  

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How it works

• You contribute securities or other appreciating assets to a charitable lead trust.
• The trust makes annual payments to the EMHS member  for a period of time.
• When the trust terminates, the remaining principal is paid to your heirs.

Benefits

• The present value of the income payments to an EMHS member through Healthcare Charities reduces your gift/estate tax
• All appreciation that takes place in the trust goes tax-free to your heirs.
• The amount and term of the payments to an EMHS member through Healthcare Charities can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
• You have the satisfaction of making a significant gift to an EMHS member through Healthcare Charities now that reduces the taxes due on transfers to your heirs later.

Example:

• George’s goal was to leave $500,000 to his daughter. He was surprised to learn that it could require a gift from his estate of up to $1 million or more for her to realize $500,000 after payment of federal and possibly state estate taxes. After considering a number of options, he decided to use $500,000 to create a charitable lead trust that will pay a fixed amount of 7% or $35,000 for 20 years to Healthcare Charities. He chose the time period and payout rate at the time he established the trust. The charitable gifts from this plan will total $700,000, substantially more than the amount originally placed in trust. At the end of 20 years, the remaining assets in the lead trust will go to his daughter.          

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How it works

• You transfer cash, securities or other appreciated property into a trust.
• The trust makes fixed annual payments to you or to beneficiaries you name.
• When the trust terminates, the remainder passes to Healthcare Charities and the EMHS member of your choice.

Benefits

• You receive an immediate income tax deduction for a portion of your contribution to the annuity trust.
• You pay no upfront capital gains tax on any appreciated assets you donate. 
• You or your designated income beneficiaries receive stable, predictable income for life or a term of years.
• You have the satisfaction of making a significant gift that benefits you now and Healthcare Charities and the EMHS member of your choice later.

EXAMPLE:
Mr. and Mrs. W., ages 61 and 62, are planning to retire in a few years. They own substantial amounts of securities that they have acquired over time. The securities are worth more than they paid for them, but yield little or no income. Deciding that they would like to convert the securities to income-producing assets, they explore selling the holdings, but learn that they will owe capital gains tax on the entire increase in value, leaving less to invest for more income. They use a portion of their securities to fund a charitable remainder trust. The trust can sell the assets, pay no capital gains tax at the time of the sale, and reinvest the entire net proceeds in a way that will yield tax-favored payments. They are entitled to a charitable income tax deduction in the year of the gift and are assured that the amounts placed in the trust will be removed from their estate for estate tax purposes. Mr. and Mrs. W. have provided for management of their assets should they become incapacitated in later years and gained great satisfaction in having funded an Endowment for their local EMHS affiliate.

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How to Establish a Fund

Healthcare Charities staff can assist in writing a detailed fund description specifying how the fund will be used and administered.

Permanent endowments specify the principal is to be invested and only the income as prescribed by the Healthcare Charities Board of Directors (approximately 5%) may be used.

Once established, funds are invested as part of the General Endowment Fund. The General Endowment is a professionally managed $28 million pool of assets consisting of nearly 275 individual funds providing much needed support for EMHS members.

You may establish a fund during your lifetime or upon your death with one of our deferred giving plans. Many donors choose to establish a fund and contribute to it over their lifetime and provide an additional gift upon their death. A named fund can be established for as little as $2,500, but Healthcare Charities will accept smaller amounts to which additional sums may be added over time. See the various funding options available for making current or deferred gifts.

            Example: Donor establishes an endowed pediatric fund in memory of his or her parents with a gift valued at $20,000. Let’s assume the average net investment return of the General Endowment Fund is 8% and the amount of income distributed to Healthcare Charities is 5%.

	Earnings	Income Paid to Healthcare Charities	Ending Balance
			$20,000.00
Year 1	$1,600.00	$0.00	$21,600.00
Year 2	$1,728.00	$1,080.00	$22,248.00
Year 3	$1,780.00	$1,112.00	$22,915.00
Year 4	$1,833.00	$1,146.00	$23,603.00
Year 5	$1,888.00	$1,180.00	$24,311.00
Year 10	$2,189.00	$1,368.00	$28,183.00
Year 25	$3,410.00	$2,131.00	$43,908.00
Year 50	$7,141.00	$4,463.00	$91,934.00

In fifty years, your Fund established with an initial gift of $20,000 will have grown to nearly $91,934 while providing over $117,000 in support of local healthcare.

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

 

Not in a position to make an outright gift to Healthcare Charities? Are you finding it difficult to live off your fixed income? There are a number of ways to meet your retirement needs and provide for an EMHS member in your community. A gift to a life income plan (gift annuity , charitable remainder trust ) provides you and/or your spouse an income stream for your life (lives) while benefiting Healthcare Charities, which may entitle you to a charitable tax deduction.

Prospective donors are encouraged to consult with their legal and financial advisors concerning charitable gift programs and their personal financial and estate plans. Healthcare Charities staff is available to assist prospective donors and their advisors regarding charitable gift opportunities.

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How it works

• You transfer ownership of a paid-up life insurance policy to Healthcare Charities.
• Healthcare Charities cashes the policy now, or maintains it and receives the death benefit later.

Benefits

• You receive gift credit and an immediate income tax deduction for the cash surrender value of the policy.
• In some cases, you can use the cash value in your policy to fund a life-income gift, such as a deferred gift annuity.
• You gain the satisfaction of making a significant gift to EMHS member in your community without adversely affecting your cash flow.

There are at least six ways to use life insurance to benefit Healthcare Charities

1.         Name Healthcare Charities as primary, secondary or final beneficiary of a policy you own;

2.         Purchase a new policy for the benefit of Healthcare Charities;

3.         Give a paid up policy you already own by changing the owner and beneficiary;

4.         Give a policy on which you are still paying premiums and deduct premium payments as charitable gifts;

5.         Buy a policy benefiting your heirs to replace money or property you have given to Healthcare Charities; or

6.         If it is more advantageous, purchase a life insurance policy on the life of another person.

Upon the death of the insured, Healthcare Charities will receive full policy benefits, which will be endowed for the purposes you direct.

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How it works

• You deed your home, a commercial building, or investment property to Healthcare Charities.
• Healthcare Charities may use the property for its own purposes, or, more likely, will sell it and use the proceeds to benefit the EMHS member and program of your choosing.

Benefits

• You receive an income tax deduction for the fair market value of the real estate, no matter what you originally paid for it.
• You pay no capital gains tax on the transfer.
• You can direct the proceeds from your gift to a specific EMHS member through Healthcare Charities.

You may donate a residence or condo, farm or forestland, commercial property, or other real estate as an outright gift or retain the right to occupy the property for life. A gift of a remainder interest in a personal residence or farm gives you a current income tax deduction for the present value of the remainder interest and lets you eliminate any capital gains on the appreciation.

Example: A married couple ages 83 and 81 donated their interest in a retirement community with an appraised value of $368,000. The couple retained the right to live in the home for the remainder of their lives. The gift with the life estate resulted in a charitable contribution of $245,051. Upon the death of the last to die, the interest in their retirement community home will be sold and the net proceeds will be added to their endowment at the Foundation.

Tangible and Intangible Personal Property

How it works

You transfer a painting, antiques, collectibles or other personal property to Healthcare Charities. Healthcare Charities may elect to hold the property and display or use it in the furtherance of its mission. Healthcare Charities may elect to sell the property at some point in the future and use the proceeds to beneit an EMHS member.

Benefits

• You receive gift credit and an immediate income tax deduction for the appraised value of your gift and pay no capital gains tax, provided your gift satisfies the "related use" requirements of the IRS.
• In certain cases, you can use personal property to fund a life-income gift, that benefits an EMHS member in your community and provides you with income now.
• You can have the satisfaction of making a significant gift now to Healthcare Charities without adversely affecting your cash flow.

 Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.

How it works

You name Healthcare Charities as the beneficiary of your IRA, 401(k) or other qualified plan. After your lifetime, the residue of your plan passes to Healthcare Charities and the EMHS member you choose  tax-free.

Benefits

• You can escape both income AND estate tax levied on the residue left in your retirement account by leaving it to Healthcare Charities.
• Give the most-taxed asset in your estate to Healthcare Charities, and leave more favorably taxed property to your heirs.
• You can continue to take withdrawals during your lifetime.
• You can change the beneficiary if your circumstances change.

Example:
Mary, a widow, has recently died. She has one surviving child. Her estate assets include her home, valued at $300,000 and an Individual Retirement Account of $300,000. Mary’s will divides her estate equally between her child and Healthcare Charities, specifying that her child will receive the IRA account, and that her house will go to Healthcare Charities for the benefit of one of our EMHS members. 

Result:
The house will pass to Healthcare Charities with no estate or income tax consequences. The IRA account given the child will not create a taxable federal estate. However, the amounts paid from the IRA will be taxed at the child’s income tax bracket when received. If the child is in the 31% tax bracket, the amount remaining after income taxes of $93,000 will be $207,000. The child's inheritance has been depleted by nearly 1/3!

Better result:
Mary should leave her house to her child, who can sell it immediately, with no federal income tax or capital gains taxes if it is sold at Mary's date of death value. The child will receive approximately $300,000. Healthcare Charities should be designated as beneficiary of the IRA account worth $300,000. Because Healthcare Charities is a tax-exempt organization, it will not be subject to income taxes on the IRA distributions. This simple rearrangement saves $93,000 in taxes and increases the amount passing to Mary's heir!

The gift of a qualified retirement plan or IRA is one of the most complex types of gifts. It is suggested that if a donor is interested in this type of gift, one of our professional giving officers should be contacted to work with the donor, the donor's financial advisor, accountant, or lawyer.

Healthcare Charities has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-866-839-4483.