Other ways to contribute to SVCHC

Planned Giving at Sonoma Valley Community Health Center

We believe in the power of philanthropy to positively change lives. Learn more about the many ways you can invest in the people of Sonoma Valley, all while accomplishing your personal long-term financial and charitable giving goals. We’re here to help you make a difference.

For more information about directing a legacy gift to Sonoma Valley Community Health Center, please email Ryan Pocock, Director of Development at rpocock@svchc.org or call 858-334-9259.

Wills and Living Trusts

Interested in helping Sonoma Valley Community Health Center with our mission but feel overwhelmed by the thought of writing another check or giving up your assets today? A simple, flexible and versatile way to ensure we can continue our work for years to come is a gift in your will or living trust, known as a charitable bequest. A charitable bequest is one or two sentences in your will or living trust that designates an amount of money, a gift contingent upon certain events or a percentage of your estate to  Sonoma Valley Community Health Center.

By including a bequest to Sonoma Valley Community Health Center in your will or living trust, you are ensuring that we can continue our mission for years to come.

Story of a Donor Like You
When Tom and Martha got married, they made a point to put together a will to protect their assets. They both loved Sonoma Valley Community Health Center and decided to include a bequest of $75,000 to us in their will. As Tom and Martha’s family grew to include three children, they decided to revise their gift to ensure their children’s future financial security. They met with their attorney and simply revised the bequest language so that their gift to Sonoma Valley Community Health Center was now a percentage of their estate instead of a specific amount. Tom and Martha now rest easy knowing upon their passing, their plans will provide for the people and charitable work they love.

Beneficiary Designations

Are you passionate about supporting Sonoma Valley Community Health Center even after your lifetime? This is both possible and easy to do, with a beneficiary designation. Just name Sonoma Valley Community Health Center as a beneficiary of your assets such as retirement plans or life insurance policies. You can complete this gift simply by filling out a form (separate from your will). This is both an easy and flexible way to give—you aren’t locked into the choices you make today. You can review and adjust beneficiary designations any time you want. A beneficiary designation clearly identifies how specific assets will be distributed after your death.

Story of a Donor Like You
Robert and Carol treasure the financial help they’ve been able to give their children and Sonoma Valley Community Health Center over the years. Now that their children are grown, Robert and Carol changed their estate plan so it could work harder for the people and causes they love. The couple updated their will to leave stocks and real estate to their children. And, they gifted a $75,000 IRA to be transferred to Sonoma Valley Community Health Center after their death. Because Sonoma Valley Community Health Center is tax-exempt, the full $75,000 will support our mission. If Robert and Carol had left the IRA to their children, approximately $18,000* would have gone to pay federal income taxes—leaving only $57,000 for their family’s use. Robert and Carol are comforted knowing they are making the most of their hard-earned money thanks to their updated estate plan.

*Based on an assumption of a 24 percent marginal income tax bracket.

Charitable Gift Annuities

When you are looking for ways to support Sonoma Valley Community Health Center you shouldn’t feel like you are choosing between your philanthropic goals and financial security. One gift that allows you to support Sonoma Valley Community Health Center’s work while receiving fixed payments for life is a charitable gift annuity. Not only does this gift provide you with regular payments and allow us to further our work, but when you create a charitable gift annuity with Sonoma Valley Community Health Center, you can receive a variety of tax benefits, including a federal income tax charitable deduction when you itemize. A charitable gift annuity involves a simple contract between you and Sonoma Valley Community Health Center where you agree to make a gift to Sonoma Valley Community Health Center and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

Story of a Donor Like You
For example, Justin, 66, and Mary, 65, want to make a contribution to Sonoma Valley Community Health Center that will support our work for generations to come, but they also want to ensure that they have dependable income during their retirement years. They establish a $20,000 charitable gift annuity with Sonoma Valley Community Health Center. Based on their ages, they will receive a payment rate of 4.5 percent, which means that they will receive $900 each year for the remainder of their lives. They were also eligible for a federal income tax charitable deduction of $6,129* when they itemized. Finally, they know that after their lifetimes, the remaining amount will be used to support our mission.

*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Charitable Remainder Trusts

Looking for a way to give Sonoma Valley Community Health Center a significant gift? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust. A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

Benefits of a charitable remainder trust include:

  • Potential for a partial charitable income tax deduction
  • Potential for increased income
  • Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

Story of a Donor Like You
Susan, 75, wants to make a gift to Sonoma Valley Community Health Center but would also like more income in the future. Susan creates a charitable remainder unitrust which pays her 6 percent of the fair market value of the trust assets every year for the rest of her life. The value of the trust assets are revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $30,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $276,880* in the year she creates and funds the trust. This deduction saves Susan $88,232 in her 32 percent tax bracket.

*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Charitable Lead Trusts

Would you like to support Sonoma Valley Community Health Center, receive tax savings and preserve future assets for your family? You can achieve these goals by creating a charitable lead trust. A charitable lead trust is when you give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

There are two ways charitable lead trusts make payments:

A charitable lead annuity trust pays a fixed amount each year to Sonoma Valley Community Health Center and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, for example, the payments to Sonoma Valley Community Health Center go up as well.

Story of a Donor Like You
George would like to support Sonoma Valley Community Health Center and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George’s trust pays $70,000 (7 percent of the initial fair market value) to Sonoma Valley Community Health Center each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

Real Estate

Want to make a big gift to Sonoma Valley Community Health Center without touching your bank account? Consider giving us real estate. Real estate can be a personal residence, vacation home, farm, commercial property or undeveloped land. Such a generous gift helps us continue our work for years to come. And a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property’s maintenance costs, property taxes or insurance. Another benefit: you don’t even have to sell the property. You can deed the property directly to Sonoma Valley Community Health Center or ask your attorney to add a few sentences in your will or trust agreement.

Ways to Give Real Estate

You can give real estate to Sonoma Valley Community Health Center in the following ways:

An outright gift. When you make a gift today of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property’s full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation.

A gift in your will or living trust. A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence, you can ensure that your support for Sonoma Valley Community Health Center continues after your lifetime.

A retained life estate. Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to Sonoma Valley Community Health Center but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though Sonoma Valley Community Health Center would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you qualify for a federal income tax charitable deduction for a portion of your home’s value.

A deferred charitable gift annuity.  Are you tired of the hassles of maintaining your property such as paying taxes, utilities and repair bills? Consider donating the property to Sonoma Valley Community Health Center in exchange for reliable payments for life for you (and someone else, if you choose). When you arrange a charitable gift annuity, you receive a federal income tax charitable deduction in the year you set up the gift annuity when you itemize on your taxes. If you use appreciated real estate to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. A gift of unmortgaged property to fund a deferred gift annuity is preferable and generates the greatest tax benefit.

A bargain sale. Want to sell us your property for less than the fair market value? A «bargain sale» may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it’s worth. The difference between the actual value and the sale price is considered a gift to us. A bargain sale can be an effective way to dispose of property that has increased in value and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction (when you itemize) at the same time.

A charitable remainder unitrust. You can contribute any type of appreciated real estate you’ve owned for more than one year, provided it’s unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.

A charitable lead trust. This gift can be a wonderful way for you to benefit Sonoma Valley Community Health Center and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.

A memorial or endowed gift. A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.

Story of a Donor Like You
Janet purchased a rental property years ago and has watched it grow steadily in value. Still active in her career and traveling frequently, she’s beginning to find management of the property more and more of a hassle. At this stage of her life, Janet has decided to move to a 55+ condominium development, where all exterior maintenance is provided and she doesn’t have to worry about security issues. Janet sees this as an opportunity to give her rental property to a charity that’s important to her while realizing valuable tax benefits.

Janet avoids capital gains tax on the appreciation and qualifies for a federal income tax charitable deduction of $250,000, which is the property’s fair market value today. She is able to claim 30 percent of her $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, she can continue to use up the remaining $190,000 deduction. Janet is happy in her new condo and loves knowing that the gift of her property will make a big difference supporting our mission.

Next Steps

  1. Contact Ryan Pocock at 858-334-9259 or rpocock@svchc.org to discuss the possibility of making an estate gift to Sonoma Valley Community Health Center.
  2. Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
  3. If you include Sonoma Valley Community Health Center in your plans, please use our legal name and federal tax ID.

Legal Name: Sonoma Valley Community Health Center
Address: 19270 Sonoma Highway, Sonoma, CA 95476
Federal Tax ID Number: 68-0286382