Bequests, which are gifts made through a will, have been an extremely popular way of providing support for the charitable organizations that are so important in our lives. It is the simplest and most frequently used method of gift planning because it provides you important flexibility.
You can make a charitable gift to the Sutter Health network by naming one of our affiliates as a beneficiary in your will. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction.
Using funds from a retirement account to make bequests is often a good strategy. If there is a balance in your retirement account at your death, not only is there a potential income tax burden, but there may be estate taxes as well. Estimates are that taxes could eat up as much as 70-75% of retirement assets under certain circumstances. Careful planning concerning retirement funds needs to be done. Some additional information regarding retirement assets is available.

How it Works

David and Ann originally established a fund that would help purchase needed equipment, supplies, and provide for maintenance. They had made an outright gift of some appreciated stock. It was later, after their experiences with the staff, that they changed their will to include a bequest that will magnify the fund tenfold.

Ann: "We felt good about helping through establishing a small fund. But we had no idea what the fund would bring to us."

David: "Over the years, we have met with some of the people involved who are on the front lines - doing the work. We've even been able to help a little ourselves. I can't describe how good it feels to sit with these people, to hear them describe their dreams and ambitions and how we've helped. What a joy to realize that we have become a part of their future and that these people have literally become a part of our family."

Ann: "I feel like we really have accomplished something good!"

Setting all the emotional rewards aside, this was a wise financial move. First, there were some immediate tax benefits on the initial gift based not on the cost of the stock, but on its appreciated value. Second, their estate will benefit by having a write-off to charity through the bequest.

There is some additional information available about the benefits of utilizing a charitable bequest and how bequests enable you to keep control of your assets.

Another option to consider in making a gift is to use life insurance policies that are no longer needed or necessary. There are some different ways to make a gift of life insurance.