Uveitis OID Support Group| Patient Information | MERSI Ocular Inflammation and Uveitis Foundation

Consider Planned Giving: Gifts Other Than Cash (OTC)

Let me start off by saying that my 3 year old daughter Raquel, has been a patient of Dr. Foster's. I found him last year when we discovered that Raquel had bilateral anterior and posterior idiopathic uveitis. My frantic, though diligent, research into this disease led to Dr. Foster. His office accommodated us with an appointment on very short notice and we flew in to see him. It turns out that he knows our primary ophthalmologist here in MI and even called him while we were in his office in order to consult on treatment procedures and order tests. Long story short is that Raquel has now been inflammation free for many months, although the condition did damage the optic nerve in one eye and left her with severely impaired vision in that eye.

So when I got the information that Dr. Foster had established the Ocular Immunology and Uveitis Foundation, I decided that I might be able to offer a little service back to him and gave Alison Justus a call. As a Certified Financial Planner™ professional and Accredited Investment Fiduciary, I help my clients with all types of planning needs, from investments and investment strategies to retirement, estate planning and charitable giving.

Part of charitable giving includes what can be called Gifts OTC (other than cash). Many people may not realize that they can make gifts to OIUF that are not cash contributions. While cash contributions are immensely important to the foundation, there are other ways to make a difference as well. Sometimes those OTC gifts can be made immediately, other times they take effect upon the donor's death(Bequests). And often times, those OTC strategies come with significant tax advantages to the donor. For example, here are some simple illustrations:

Gift of publicly traded securities: Rather than selling stock and writing a check, you can give OIUF shares of publicly traded stock and avoid paying a capital gains tax. You get a deduction for the full market value of the securities and OIUF can sell the shares as they see fit without any tax implications.

Gift of real estate: Any real estate held by you may be given as a gift, even your home. (You can live in the home until death, but get the tax deduction now). Vacation homes, commercial or income producing property may be gifted as well.

Gift of tangible personal property: This can be any type of tangible property--art work, baseball cards, rare books - provided OIUF is willing to accept it. For tax purposes, you should have the property appraised. You get a deduction for the fair market value.
Gift of life insurance: Name the OIUF as a beneficiary of a life insurance policy. Get a deduction for the value of a policy you may no longer need and OIUF gets the eventual proceeds.

Other Bequests: Any gift made to OIUF that is stipulated in your will or estate documents. Your estate receives the charitable tax deduction when the gift is made after death. You can also name OIUF as a beneficiary of your retirement account, 401k, IRA, annuity, etc. and your estate will get a corresponding tax deduction.

Some more sophisticated OTC gifting strategies might include:

Charitable remainder trust: This type of trust typically first benefits you or someone designated by you, and then later the OIUF. The trust is created in your name and is funded with a tax-deductible gift (usually consisting of some appreciated asset(s)). Someone designated by you manages the asset and the trust makes regular payments from its income, or a percentage of its principal, to whomever you designate. When the life of the trust ends, the principal then goes to the OIUF.

Charitable lead trust: In this arrangement, the OIUF typically benefits immediately. You create a trust and make a tax deductible gift. The asset is managed and a regular stream of income from the gift goes to the charity. At the end of the trust's life, the principal gift can return to you, your heir or someone else.There are more strategies than can be listed here, so if you have an interest in any of those mentioned or would like information on how you can provide for the OIUF in your estate plan or with gifts other than cash, please contact Alison Justus.Michael Acho, CFP®, AIF®