Information for Financial Professionals

The following information is provided to aid Financial Planners who assist individuals in attaining their philanthropic goals. Please contact the Foundation at 608-784-6449 for additional information.


Important Tax Information

Mayo Clinic Health System – Franciscan Healthcare Foundation, Inc. is a 501(c)(3) not-for-profit organization, incorporated to enhance the health care programs and services of Mayo Clinic Health System - Franciscan Healthcare. A small portion of Foundation funding may also be directed to support health-related programs within the communities served by Franciscan Healthcare.

The Foundation's federal tax ID number is 39-1186647.


Gifts

Gifts to the Foundation are deductible from income, capital gain and estates taxes to the full extent allowed by law. Gifts may be designated for a particular program or service, or may be made for the Foundation's general use as determined by the board of directors.

The Foundation accepts and encourages gifts through a variety of vehicles which may provide tax advantages to the benefactor and his or her family or other heirs. Gift options include:

Current Gifts

Cash

  • Tax deductible if donor itemizes deductions.
  • Up to 50 percent of adjusted gross income can be deducted in any one year.
  • Excess can be deducted over the next five years.
  • Actual savings depend on tax rate.
  • The higher the tax rate, the greater the savings.

Pledges

  • Payable over a three- to five-year period.
  • Deductible in the year a payment is made.

Matching gifts

  • Takes advantage of programs offered by many employers.
  • Leverages donor's gifts to a higher level.

Appreciated Property

  • If qualified as a long-term capital asset (one year and one day), property should be
  • Given outright.
  • Avoids payment of capital gains tax due if property were sold.
  • Deduction given for full value of property, limited to 30 percent of adjusted gross income. Excess beyond 30 percent can be carried forward for five years.

Property that has Lost Value

  • Donor sells the property, takes loss for tax purposes, then contributes the cash received from sale.
  • Deductions given for both the loss and the charitable gift.

Real Estate

  • Possible for donor to make gift of residence, farm, or vacation home, reserving right of occupancy as long as donor and spouse live.
  • Irrevocable gift qualifies for immediate tax deduction based on present value of remainder interest.
  • Assign directly to the Foundation or, preferably, through a broker.
  • Amount of contribution is fair market value on the date of transfer.

Closely Held Stock

  • Produces a current tax deduction equal to fair market value of the stock.
  • Corporation may redeem shares of the stock from the Foundation.
  • Could reduce liability for accumulated earnings tax. 

Deferred Gifts 

Bequests
Outright bequests, as well as certain bequests in trust, are not subject to estate taxes. Bequest can take any of the following forms:

  • Bequest of a dollar amount of particular securities or other property.
  • Residual bequest of all or portion of estate after payment of specific amounts to other beneficiaries.
  • Contingent bequest to take effect if other beneficiaries die before donor.
  • A bequest can often be arranged simply with the addition of a codicil amending an existing will.

Charitable Gift Annuity

  • Provides a fixed income for the lifetime(s) of one or two annuitants.
  • Amount paid determined by rates adopted by American Council on Gift Annuities.
  • Portion of gift and income tax are tax deductible.

Pooled Income Fund

  • Contributions pooled and managed by investment advisors.
  • Income paid to one or two beneficiaries.
  • Income fluctuates based on earnings of fund.
  • Immediate tax deduction for portion of gift.
  • Avoids capital gains tax if appreciated securities are given.

Life Income Trusts

  • Trust assets are funds or property contributed by donor (usually $100,000 or more)
  • Flexibility in type of property that can be donated.
  • Can provide fixed or variable levels of income.

Charitable Lead Trust

  • Donor provides assets for use for a limited period of time
  • Funds are invested to provide income to the Foundation
  • Asserts returned to donor or donor's estate at end of designated period.
  • Can fulfill a pledge while reducing estate and gift taxes that might otherwise be due on assets given outright to heirs.

Wealth Replacement Trust

  • Protects inheritance interests of heirs.
  • Using resulting tax savings of current or deferred charitable gifts, donor purchases a life insurance policy with heirs as beneficiaries.

Life Insurance

  • Make the Foundation sole owner and beneficiary of paid-up policy.
  • Receive income tax deduction for the cash surrender value of the policy.
  • If policy not fully paid, continue to pay premiums.
  • Receive tax deduction for annual premium amounts.

Please contact the Foundation Office at 608-784-6449 for more information. 


Sample Bequest Language

Unrestricted Gift, to be used where the need is greatest: I give to Mayo Clinic Health System – Franciscan Healthcare Foundation, Inc., a non-profit 501(c)(3) corporation, located in La Crosse, WI, the sum of $________* for its general purposes.

Gift for a specific purpose: I give to Mayo Clinic Health System – Franciscan Healthcare Foundation, Inc., a non-profit 501(c)(3) corporation, located in La Crosse, WI, the sum of $________* to be used (state purpose).

Gift for perpetual endowment: I give to Mayo Clinic Health System – Franciscan Healthcare Foundation, Inc., a non-profit 501(c)(3) corporation, located in La Crosse, WI, the sum of $________* to be used as a permanent endowment, the income only from which shall be used for its general purposes (or describe specific purpose, if desired).

Residuary Bequest, leaving any remainder after all other bequests have been paid: All the rest, residue, and remainder of my estate, both real and personal, I give to Mayo Clinic Health System – Franciscan Healthcare Foundation, Inc., a non-profit 501(c)(3) corporation, located in La Crosse, WI, for its general purposes (or describe specific purpose, if desired).

*rather than specific sum, a percentage of the estate or a description of the property to be given may be substituted.