Gifts That Pay You Income
You can make a gift to Methodist Health Foundation through a special trust or annuity that will pay you and/or another beneficiary annually. At the death of the last income beneficiary, the remaining principal is transferred to Methodist Health Foundation. You can designate your gift for a specific purpose, should you prefer.
Charitable Gift Annuities
A charitable gift annuity is a simple contract between you and Methodist Health Foundation that potentially offers a tax-advantaged way to provide for income during retirement. In the future, your gift provides support to IU Health Methodist Hospital.
You can begin to receive income right away, or at a predetermined future date. You also can decide when the income payments begin within a future time frame, determined when you make your gift. In any case, your income is taxed at a favorable blended rate.
How
Please contact Methodist Health Foundation to learn how to establish a charitable gift annuity.
Benefits of Charitable Gift Annuities
- Steady, guaranteed lifetime payments
- Potential charitable income tax deduction
- Potential avoidance of capital gains tax
- Savings on gift and estate taxes
- Sustained support for IU Health Methodist Hospital in the future
Charitable Remainder Trusts
A charitable remainder trust is a separate tax-exempt account into which you transfer your gift.
Dr. Richard and Jean Nay 
Dr. Richard Nay and his wife Jean were outstanding examples of the charitable traditions of the hospital and Foundation. A cardiologist for 40 years at Methodist, Dr. Nay was also instrumental in developing other philanthropic relationships for the hospital. In 1973, the Nays worked with benefactress Grace Showalter to establish the Showalter Fund, a $2 million gift that has been used at Methodist to advance cardiovascular care.
Dr. Nay became the first doctor elected to the hospital’s board of directors, in 1981 and in 1983, the coronary unit at Methodist was named the Richard M. Nay Coronary Care Unit.
Over the years, grateful patients made multi-million dollar donations in honor of Dr. Nay – gifts that supported Krannert Pavilion, Midwest Eye Institute and the cardiovascular center.
The Nays donated generously to support the educational needs of cardiac care nurses at Methodist, including establishing a charitable remainder trust. Today, their gifts are still benefiting the hospital and supporting the critical care needs.
The trust can pay you a percentage of the trust’s value as income at present, typically 4-5%. As the value of the trust changes, so too does your income.
Alternatively, the trustee can pay you a fixed payment each year, based on a percentage, typically equivalent to 4-5%, of the funding amount of the trust.
How
Charitable remainder trusts can be established at a financial institution. Either that institution or Methodist Health Foundation can serve as trustee.
Benefits of Charitable Remainder Trusts
- Income for life
- Support for spouse or other beneficiaries
- Potential for growth of income over time
- Investment diversification
- Less capital gains tax on gifts of appreciated assets
- Charitable income tax deduction
- Gift and estate tax savings
- Significant future support of IU Health Methodist Hospital
Assets You Can Give
There are many options regarding the gift you make to Methodist Health Foundation. Cash, IRAs/Retirement Plans, and life insurance are just a few examples of the assets you can give.
Illene Maurer 
Illene Maurer remembers being involved in her community even as a child. "You did what you had to do. Everyone volunteered. We sold War Bonds, even in grade school."
Methodist Hospital was recommended to Illene and her husband, the late Michael B. “Mickey” Maurer, when they started their family. "All three of my children were born at Methodist; surgeries were performed at Methodist. When my husband was fatally injured, he was LifeLined to Methodist. I believe in the hospital. Plain and simple."
Because of that belief, Illene has given her time – as a former Methodist Health Foundation board member; and past president of Methodist Hospital Task Core – and her treasure, by making a planned gift as a member of Hughes Campbell Society.
"We have to give back to the community. For our family, music and health are our priorities. And when it comes to health, we only think of Methodist."
IRAs/Retirement Plan Assets
Methodist Health Foundation can be designated as a beneficiary of a portion or all of the remainder of your retirement plan or IRA.
Distributions from retirement plans at the death of the survivor of the account-holder can be subject to both income and death taxes. In a large estate, these taxes can leave less than 30 cents on the dollar of the plan’s balance for your children or other heirs.
If you name Methodist Health Foundation as a beneficiary of the remainder of your retirement plan the distribution is not subject to income or death taxes. The Foundation is able to use the entire remainder for the future patients’ care at the hospital.
How
You must notify your plan's administrator.
A change of beneficiary document will be required.
Sample Language
"The primary beneficiary is my spouse as long as he/she survives me. The beneficiary of any amount(s) remaining in the plan after the death of my spouse, or of the entire amount in the plan upon my death if my spouse does not survive me, or of any portion thereof that my spouse may disclaim, is Methodist Health Foundation, Inc., for its general charitable purposes or for the benefit of (specific purpose)."
Gifts of Life Insurance
In the event that you have more coverage than is necessary, you may consider gifting the policy to Methodist Health Foundation. You receive a charitable income tax deduction equal to the policy’s cash surrender value or cost basis when you transfer ownership of the policy to the Foundation.
Appreciated Securities
How
You can make a gift of long term appreciated securities or stock to Methodist Health Foundation, often with a minimal amount of out-of-pocket cost. You realize no capital gains tax if stock is transferred directly to Methodist Health Foundation. The fair market value of the securities on the date of the gift determines the potential amount of the income tax deduction.
Gifts of securities are often made to life income plans such as charitable remainder trusts and gift annuities. In addition to getting income for yourself and/or your loved ones, you receive an income tax deduction, reduce capital gains tax, and reduce your taxable estate.