The Impact Of Your Gifts

The impact of your gifts through the Mid-Florida Medical Services Foundation

Every gift no matter how large or small touches every aspect of our health service organization. In recent years local and regional donors have helped our organization's nurses receive scholarships and pursue advanced training. Other donors have provided funds to purchase state-of-the-art medical equipment. Several major donors have made possible many essential services and advancements at Winter Haven Hospital, and the Regency Medical Center. Some of our donors have chosen to make these advancements possible in a very public fashion while others have chosen to help improve our organization's ability to deliver high quality healthcare very quietly. The Mid-Florida Medical Services Foundation is proud to acknowledge gifts according to our donor's wishes. Recognition can come through our various publications, at appreciation and social events and by the naming of facilities and through endowments made possible by our donor's vision and generosity.

Our donors determine how they want their gifts to be applied

The Mid-Florida Medical Services Foundation welcomes discussion with donors about their preferences for the use of their gifts. Whether a donor has an interest in a specific disease (e.g. heart or cancer) or they are interested in a service area (e.g. women's services, emergency services, rehab services), we are devoted to assuring your gift will be applied in the way you desire, and to make the biggest impact for the communities we serve.

Unrestricted Giving (for the most current needs of our organization)

An unrestricted gift gives the Foundation the ability to direct resources where the need is most urgent, to focus resources where the opportunities are greatest. Making an unrestricted gift allows you as a donor to have a part in every project, every educational initiative, and every patient's care through the wide spread daily operations of Mid-Florida Medical Services. Unrestricted gifts impact everything our health service organization does.

Gifts to help purchase medical equipment

To insure our not-for-profit health service organization will have the best equipment available for diagnosis, treatment, and therapy, our organization invests hundreds of thousands of dollars a year to maintain its technological leadership. A significant portion of that annual investment needs to come from private philanthropic sources in the form of funds to be used for the purchase of vital healthcare equipment.

Gifts to enhance departments and service areas

Many donors wish to dedicate their gifts to a fairly specific part of our organization. Each of our hospital's service areas, departments, sections, nursing units, and technology divisions are all pleased to receive and recognize gifts in support of their activities and work. Many elements of our organization have established gift and endowment funds. Donors who have a specific idea or would like some suggestions in this area should contact the Foundation at 863-293-1121 Ext. 5826.

Donors determine when their gifts will be used by our organization

As a donor you may choose the timing of your gift for the impact you find most desirable.

Immediately for current needs

Some donors wish to designate their gift for current uses. In this way their gift will go directly to work right away in a crucial area of need.

For a specific period of time

Many donors like to make a multi-year pledge to fund a project or program for a specific amount of time. Examples might include; a three year pledge to provide funding to help operate the Level II Neonatal Intensive Care Unit at the Regency Medical Center or a five year pledge to help with Nursing education, recruitment or retention.

In perpetuity through an endowment

Some donors like the idea of leaving a permanent legacy. Through this type of giving donors may wish to have their gift added to the Foundation's permanent endowment or they may wish to create and name an endowment. Thus providing support for the project of their choice for generations to come.

There are many ways to give and continue to meet your goals

The quickest and simplest way to provide a gift is to write a check or give cash. However, other asset types may provide greater advantages to you in terms of short-term tax savings, net cost, eventual charitable impact, and long term estate planning. The Foundation encourages donors to consult with their legal and financial advisors to determine the optimal way to fund a gift. The Foundation staff is always happy to meet with donors and their advisors to make a donor's wishes become reality.

Gifts of Cash

A gift of cash can be made either as a one-time contribution to the Foundation or as a pledge to be paid on a schedule of the donor's determination. If you wish to make a gift in the future and would like a reminder at that time, please let us know and we will follow-up accordingly.

Gifts of Securities

Many donors find it preferable from a tax standpoint to provide gifts of securities (stocks or bonds) that have appreciated in value since the time they were acquired. Providing gifts of such "appreciated" securities: have two advantages: donors can deduct the full value of the securities on the day they are given and avoid capital gains taxes. Some donors have securities with sentimental value (a family company stock or a favorite holding). The Foundation encourages donors to talk to their advisors about how to give such securities, take a deduction, and buy the securities back later on a "stepped-up" basis to decrease tax exposure. There are traditionally two ways to make gifts of securities: donors can speak with their broker or mutual fund company agent and have them transfer these assets directly to the Mid-Florida Medical Services Foundation, or they can have them mail "unendorsed" assets to the Foundation. In either case we encourage donors to call the Foundation beforehand to make sure the transfer is completed effectively.

Gifts of Real Estate and Personal Property

Personal property that has appreciated in value since acquired (such as real estate or art collections) can be a very effective way for donors to make a gift. Federal tax laws support such gifts but are quite complicated. Please call the Foundation and we will work closely with you and your advisors to ensure your wishes are implemented. Many donors make very important gifts in this way, especially through gifts of real estate. The following is an example of a creative way to provide such a gift: a donor gives their home to the Foundation, they take a substantial tax deduction right away and stay in their home for the rest of their life. In addition, a donor can designate the future use of their gift for the project of their choice.

Gifts of Retirement Assets

Gifts of retirement assets often make better financial sense to donors than gifts of cash, securities, or personal property. The Foundation encourages donors to talk with their advisors before making such a gift. Retirement funds such as IRA's and 401K's are typically a very significant part of most donors' estates. These assets are taxed more aggressively by the federal government than others. To some donors it makes more sense to commit all or part of these assets to the Foundation so we can help improve local quality of life rather than letting a significant percentage of the assets go undesignated to the Internal Revenue Service. This is a very important consideration with some donors due to the fact that in some cases, estate and retirement funds can be subject to taxes as high as 80%, leaving little for heirs. As always, the Foundation encourages donors to get advice on what to give and which assets are better to keep for heirs.

Gifts of Insurance

Many donors have reached a point in their life where they don't need life insurance anymore. The insurance coverage they have developed over many years may now actually cause them to be subject to significant estate taxes. If such policies are passed on to heirs, this may cause heirs to incur high tax liability. A gift of life insurance provides some donors with a particularly appealing way of making a substantial gift to the Foundation. Such a gift lets the Foundation acknowledge and recognize donors now. It also allows donors to make a larger gift than they might normally be capable of through their current income. Providing gifts through insurance also allows donors to make good use of these types of assets now that they are becoming less important. To ensure such gifts are deductible, donors must make them "irrevocable" and the Foundation must be named the owner and beneficiary of the respective policy. If a donor's gift is from a "paid-up" (e.g. there are no additional premiums to be paid) life insurance policy, donors can receive an immediate income tax deduction generally equal to the sum of the premiums paid. For policies that donors are still paying premiums on, deductions are different but still can be very beneficial. The Foundation encourages donors to think about future uses of such gifts applied to facility and endowment naming opportunities. Another important consideration with life insurance is "wealth replacement". If a donor makes a substantial gift to the Foundation they are often reducing the amount of their estate assets that will go to their heirs. Increasingly many donors are using some of their tax savings (from their charitable deduction) to purchase an insurance policy on their own life and designate their heirs the owners and beneficiaries of that policy. When properly constructed such a wealth replacement strategy can permit both a larger gift and a larger inheritance for donor's heirs.

A strategy for providing a gift today and receiving income for life

The Foundation encourages donors to think about making a "life income" gift by transferring assets into a charitable agreement which provides substantial benefits for both the donor and the Foundation. Through such an arrangement donors can receive income from these assets for life. When the donor or their beneficiaries pass away the Foundation receives the assets. Donors may designate how their assets will be utilized by the Foundation. Donors will also receive an income tax deduction, an estate tax reduction and perhaps avoid capital gains taxes through such a strategy. As always, donors should consult with their legal and financial advisors and with the Foundation to see what options might work best for them.

Giving through a charitable remainder trust

Donors may transfer assets in the form of cash, securities, or property to a trust. In so doing, donors can name a trustee or agent to manage their trust assets and make distributions in accordance with their wills. Trusts can be designated to generate income distributions to donors and if specified, to a second beneficiary each year. After a donor passes away the trust assets can be transferred to the Foundation. In view of the fact that such trusts are irrevocable they often offer specific advantages to the donor: capital gains taxes are eliminated with the transfer of the gift; trust assets are managed by an estate planning professional, and in many cases the trust will produce substantially more income than was produced by the assets that were used to create it: for example, low yielding securities can be transferred to the trust which can in turn sell them to purchase high yielding securities while avoiding capital gains taxes.

Giving through a charitable remainder unitrust

A unitrust pays the beneficiary a fixed percentage of the trust assets as valued annually. The dollar amount paid to the beneficiary depends on the performance of the trust investments. For example, if a donor creates a 7% charitable remainder unitrust and transfers $50,000 to the trust, the beneficiary would receive $3,500 ($50,000 times 7%) the first year. If the assets of the trust appreciated during the second year to $60,000, the trust would pay the beneficiary $4,200 ($60,000 times 7%). Should the assets in the trust depreciate in future years, the amount paid to the beneficiary will be lower. A donor's income tax charitable deduction is based upon several considerations: (1) the amount of the gift, (2) the percentage pay out selected by the donor, (3) the ages of the beneficiaries.

Giving through a charitable remainder annuity trust

An annuity trust pays a fixed amount to the beneficiary annually. For example, a donor transfers $50,000 worth of low yielding securities to an annuity trust and stipulates that he or she desires to receive $4,000 annually. The trust is obligated to pay the $4,000 each year. The "overage" is added to the trust principle. Conversely if the trust earns less than the stipulated $4,000, the shortfall would be made up by invasion of principle. The beneficiary is guaranteed a $4,000 annual income as long as the trust has assets.

Giving through a charitable gift annuity

Many donors wish to make a gift of cash or appreciated securities to the Foundation which guarantees by written contract to pay a donor (and secondary beneficiaries if appropriate) a specific amount quarterly for life. A portion of the income gained may be tax free. If appreciated securities are used to make the gift there is a capital gain liability which can be spread over the actuarial life of the donor. The amount of the income and the charitable deduction is based upon the amount of the gift and the age of the donor.

Giving through a charitable lead trust

A lead trust in many ways is the opposite of a remainder trust, which was discussed above. Donors can place assets into a lead trust and designate the income from these assets to be used by the Foundation. At the end of the trusts operation (donor's lifetime or term of years) the assets revert to the donor or to a beneficiary of the donor's choosing. A lead trust is a great way for a family to transfer assets (especially in a family owned business) to the next generation without incurring estate taxes. If donors have assets they want their heirs to have and they don't need the income from these assets now, a lead trust can be a good estate planning strategy.

Providing a gift through your will

While the vast majority of donors provide gifts to various charitable causes during their lifetimes, many miss the opportunity to leave a permanent legacy. A significant number of Americans for whatever reason pass away without a will and thus never get around to designating how their estate assets will be divided after their passing. Many donors are more comfortable with the idea of retaining control of their assets during their lifetime and leaving charitable commitments to their will executors. The Foundation is grateful to know that many donors have included the Foundation in their estate plans through their wills. If you as a donor have been kind enough to acknowledge the Foundation in this way, please tell us so we can say thanks, to understand and honor your intentions and so that we can recognize you in the Foundation's Society.

Recommended Will Language

If you wish to make a gift in this way, you may name specific beneficiaries of your estate such as family, friends, and the Foundation. If it is your pleasure to include the Foundation in your plans, the following language may be helpful: "I ___________ bequeath (or give) to the Mid-Florida Medical Services Foundation, a not for profit 501C3 corporation, (the sum of $________) (____% of the residual and residue of my estate) to be used at the discretion of the Board of Trustees of the Foundation for the benefit of the Mid-Florida Medical Services Foundation, Inc. If you as a donor or your attorney prefers alternative language, you may call the Foundation and alternatives will happily be arranged.

Utilizing a bequest to endow an annual gift

Many donors have made yearly gifts to the Foundation's annual fund over the years. Some donor's desire to continue their annual giving for generations to come by endowing it through a bequest. For information on this giving option, please contact the Foundation.

Ensuring your heirs are adequately provided for

Many donors are understandably reluctant to provide gifts from assets that could potentially benefit their heirs. Federal tax laws and good estate planning provide ways for donors to restore the value of certain types of assets to their heirs. For example: if a donor's estate is greater than $625,000 per spouse it is subject to estate taxes that begin at 37% (on the first dollar over $625,000) and rise to 55% (and sometimes more) on estates over three million dollars. IRA and other retirement plan assets are included in a taxable estate. In addition, your house and other investments may have appreciated substantially over the years. Millions of people in the U.S. have an estate large enough to be taxable and do not realize it, what's more they're not prepared with an estate plan. The assets donors intend to leave to their heirs cannot reach them until they have passed through estate tax requirements (Probate). When a donor provides a charitable gift they may experience a reduction in several types of taxes; Income taxes, capital gains taxes, gift taxes, and estate taxes can all be affected. Restoring the value of bequeathed charitable assets to heirs can be accomplished by purchasing an insurance policy on yourself and giving it to your heirs. If your heirs own it or if you put it in a trust it is not considered part of your taxable estate by the IRS. Donors or their heirs can pay for it at least in part with a tax savings from the charitable gift. The amount of insurance bought need not equal the amount of the charitable gift. For practical purposes it can equal the amount heirs would have gotten if the asset given were taxed as part of the donor's estate. With this same line of reasoning it is considered better to make a charitable gift at an age early enough to ensure cost effective rates. This strategy also gives the donor time to enjoy the impact of their generosity. Another effective strategy for ensuring heirs are provided for is implementation of a charitable lead trust, which was previously discussed.

Mid-Florida Medical Services Foundation Naming Opportunities

One of the best philanthropic traditions in the United States is "naming". The Mid-Florida Medical Services Foundation is proud to recognize the generosity of it's current and historical donors through naming appropriate Winter Haven Hospital, Regency Medical Center, and other system facilities, endowments, and programs in their honor. It is a fact that others are inspired by seeing the legacy of past donors. To this extent the Foundation wants to remind everyone that the healthcare they receive today is better due to yesterday's philanthropists. When properly planned the impact of a named gift lasts for many future generations benefit. Providing a named gift is one of the few things you can do that will out last your lifetime. It is also one of the best ways donors or their loved ones can be remembered for their good deeds and works for ages to come. Donors may wish to name something for themselves in honor of their parents, their family, their favorite nurse/physician, or some significant other person in their life. The Foundation staff is always happy to talk with you about the endless possibilities. For more information please call the Foundation at 863-293-1121 Ext.5826.