Creating a Legacy of Care & Compassion by Providence Health & Services

OF CARE&COMPASSION

CREATING A e power of creating a legacy is extraordinary. ere’s no better feeling than giving from your heart to bring hope and health to others. Since 1943, Providence in Southern California has been responding to the unique needs of our communities, caring for the sick and vulnerable. is history of high-quality, compassionate care is built on the generosity of people like you. Legacy gis strengthen our healthcare services and extend the outreach of the Providence mission.

DELIA As I started to think about my own financial security and ability to give back, I decided to establish a charitable gift annuity with Providence. It gave me a good feeling that I was helping our community by supporting my local medical center.

JAVIER & MARIA The care that Providence has given our family has been wonderful and we're happy to be able to give something back. We support Providence!

e following stories reflect the powerful legacy of hope and healing others have provided for succeeding generations. Please join us in supporting a future of excellence and compassion.

DR. SAMUEL & BEE-DE It is clear to us that Providence should be a natural recipient of our giving. We plan to be loyal and support Providence as long as we're able to.

PHIL & BONNIE

JULIAN & GLADYS

I'm delighted to help out with my giving, and I know Bonnie would have supported that, too. I only wish I could do more.

It's important that every individual seek out ways to enrich his city by creating opportunities that will allow individuals living there to enrich their own lives.

BOB & SUZI Knowing that people can benefit from our gifts, as we've benefited from the gifts of others, is a marvelous feeling. You have to pay it forward, and that's what we're trying to do.

www.ProvidencePowerOfGiving.org

CIRCLE OF e Circle of Caring is a legacy society honoring benefactors who have remembered Providence in an

WHAT ARE THE TYPES OF BEQUESTS & ESTATE GIFTS - PAGE 8

estate plan or who have made a planned gi. Choosing from a full range of planning options, these individuals have helped to ensure that Providence medical centers, hospice and community outreach programs will provide excellent and compassionate care for many years to come.

GIFTS FROM IRAs & RETIREMENT PLANS - PAGE 9 GIFTS THAT PAY INCOME - PAGE 14 GIFTS OF REAL ESTATE - PAGE 20 GIFTS OF LIFE INSURANCE - PAGE 21

This brochure is an educational publication, not legal advice. Prospective donors should seek the advice of a qualified legal, estate and /or tax professional to determine the consequences of his/her gift. 2

OTHER TAX-FRIENDLY GIFTS - PAGE 22 Providence Foundation Sourthern California

JAVIER & MARIA The care that Providence has given our family has been wonderful and we're happy to be able to give something back. We support Providence!

e following stories reflect the powerful legacy of hope and healing others have provided for succeeding generations. Please join us in supporting a future of excellence and compassion.

DR. SAMUEL & BEE-DE It is clear to us that Providence should be a natural recipient of our giving. We plan to be loyal and support Providence as long as we're able to.

PHIL & BONNIE

JULIAN & GLADYS

I'm delighted to help out with my giving, and I know Bonnie would have supported that, too. I only wish I could do more.

It's important that every individual seek out ways to enrich his city by creating opportunities that will allow individuals living there to enrich their own lives.

BOB & SUZI Knowing that people can benefit from our gifts, as we've benefited from the gifts of others, is a marvelous feeling. You have to pay it forward, and that's what we're trying to do.

www.ProvidencePowerOfGiving.org

CIRCLE OF e Circle of Caring is a legacy society honoring benefactors who have remembered Providence in an

WHAT ARE THE TYPES OF BEQUESTS & ESTATE GIFTS - PAGE 8

GIFTS FROM IRAs & RETIREMENT PLANS - PAGE 9 GIFTS THAT PAY INCOME - PAGE 14 GIFTS OF REAL ESTATE - PAGE 20 GIFTS OF LIFE INSURANCE - PAGE 21

OTHER TAX-FRIENDLY GIFTS - PAGE 22 Providence Foundation Sourthern California

JAVIER & MARIA Providence Core Values Inspire Philanthropy Javier and Maria Uribe smile at the way things turned out. As a young man Javier was unable to secure a small bank loan to start an automobile paint and repair business, so his father helped out. e result was 1-Day Paint & Body Centers, which today has 25 shops, has painted more than one million cars, and was a springboard for the couple's ability to assist others. "We were very fortunate right from the beginning – in a little over 15 years we had 15 shops," Javier said proudly. "In one year we painted more than 100,000 cars." In 1957, Javier, who was reared in Texas, met Maria, who grew up in Los Angeles. Friends had arranged a party to better acquaint the two, and they quickly hit it oﬀ. "I thought he was very good looking," Maria said of Javier, whose smile is infectious. ey were married two years later. Javier's first job was with legendary Earl Scheib Paint and Body, where he quickly assumed a management position. Several years later, aer gaining some knowledge of the business and a wealth of experience, Javier founded 1-Day Paint & Body in 1967, later selling real estate as well. e Uribes haven't looked back. e couple's involvement with Providence began when their two daughters and son were born in quick succession, each of them at Providence and each through caesarean section. Over the years both Javier and Maria also have been treated there, and in 1992 Maria was asked to join the Providence Foundation Board of Governors, which she eventually chaired; their

daughter, Teresa McGilvray, joined her on the Board of Governors years later. Javier and Maria, who also have hosted "friend-raising" events at their home, have made many contributions to Providence, including generous annual distributions through a charitable IRA rollover. ey began giving philanthropically, as their parents taught them to through example, for one simple but very important reason.

"In its core values Providence had everything I was looking for," said Maria. "ose core values are respect, compassion, justice, excellence and stewardship. In the years that I've been on the board Providence has really worked hard to maintain those core values and to fulfill its mission of compassionate care, and we wholeheartedly support that." Indeed, Maria and Javier supported the Disney Family Cancer Center capital campaign, in addition to Phase I and Phase II of the Neuroscience campaign. Maria also serves on the Neuroscience campaign committee. Javier, who has been treated several times at Providence and has seen those tenets in play up close, described his love for Providence succinctly. "e care that Providence has given our family has been wonderful and we're happy to be able to give something back," he said, adding emphatically, "I support Providence!"

DR. SAMUEL & BEE-DE A Fulfilling Medical Career Leads to Endowment Gift Even while in medical school at the University of the Philippines, Dr. Samuel Lim's childhood love for mathematics and engineering never diminished. He spent his summer vacations taking advanced mathematics courses and dreamed of a career where he could combine mathematics, engineering and medicine. e advent of computerized tomography (CT) and an invitation to fill an unexpected neuroradiologist vacancy at a Providence hospital forged a path to fulfill this dream. Sam and Bee-De met in 1965 at an international student event at the University of Washington, where Bee-De earned her Master of Arts in Political Science and Dr. Lim was a research fellow. An assistant professor of neuroradiology at the University of Miami Medical School before joining the Providence medical staﬀ in 1973, Dr. Lim remained on staﬀ at Providence until his retirement 25 years later. Along the way, the couple successfully raised three children. Soon aer Dr. Lim came to Providence, CT was introduced into clinical practice, serving as a cuttingedge and important diagnostic instrument to improve patient care. To Dr. Lim it was the perfect combination of mathematics, engineering and medicine. When the Sisters endorsed his request to purchase the first CT scanner in Southern California, followed by a magnetic resonance imaging (MRI) machine a few years later, he saw his dream realized. Dr. Lim is eternally

grateful to the Sisters for their vision and wisdom in consistently supporting advanced technology for patient care.

e Lims’ philanthropic support began soon aer Dr. Lim joined Providence and has included campaign gis, annual giving, support for events, and the creation of the Dr. Samuel T. Lim Family Endowment. Proceeds from their generous endowment will benefit Providence in perpetuity. Not only did Dr. Lim spend years caring for patients at Providence, but both he and Bee-De have received excellent treatment there as patients. "Providence saved my life," Dr. Lim said of the open-heart surgery he underwent at Providence and the treatment he received for a life-threatening infection. "Providence is very important to me." It also is important to Bee-De. "Without Providence we wouldn't be here today," she said.

"ere are many ways that people can contribute, giving their time, energy, talent and treasure. is is how we believe we can best help Providence which has been so close to our hearts for so many years.” Indeed, planned giving is the lifeblood of any outstanding healthcare organization. e Lims recognize this and are doing what they can to ensure that Providence continues to fulfill its healing mission into the future. "It is clear to us that Providence should be a natural recipient of our giving,” said Dr. Lim. “We plan to be loyal and support Providence as long as we're able to."

Providence Foundation Sourthern California

grateful to the Sisters for their vision and wisdom in consistently supporting advanced technology for patient care.

Providence Foundation Sourthern California

GIFTS FROM

BEQUESTS & A GIFT BY WILL OR FROM YOUR ESTATE IS EASY TO MAKE AND CREATES A LASTING LEGACY. A gi from your estate will have an impact on Providence beyond your years. It is by this generous act, that your family and friends will remember what was important to you: helping others and strengthening your community. A gi by will or from your estate to Providence is an enduring statement of your values.

WHAT ARE THE DETAILS?

WHAT ARE THE BENEFITS?

A bequest or other estate gi is not eﬀective until the donor passes away. e donor can easily revoke or change the charitable gi.

WHAT ARE THE DETAILS?

• e donor can completely enjoy his/her property, regardless of the bequest or estate gi. e “gied” property still belongs to the donor.

• Anyone can create a legacy with a bequest or estate gi. A charitable estate gi or bequest

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does not have to be of a certain size and the donor does not have to be wealthy to make a diﬀerence. • It is simple to designate Providence as a beneficiary or change title to property so that Providence receives an estate gi. It is easy for a lawyer to add a charitable gi to a will or a living trust.

A bequest is a gi from a will or from an amendment to a will. A bequest does not take eﬀect until the donor has passed away. is means the donor is free to revoke or change the gi at any time. Many people have created a living trust as part of their estate plan. It is easy for a donor to make a gi to Providence from a living trust that will not take eﬀect until the donor has passed away. ere are other simple ways for donors to make estate gis to Providence. Brokerage, financial accounts and other property can be owned by the donor with a “payable on death” or “transfer on death” title. With a “transfer on death” or “payable on death” title, the property goes to Providence upon the donor’s passing. A donor can easily name Providence as a beneficiary of a life insurance policy or an individual retirement account (IRA) or pension plan.

• An estate gi can be planned so that the donor’s family or other loved ones are the primary beneficiaries of the estate, while Providence receives some support. • A bequest or estate gi can carry out the donor’s intention in many diﬀerent ways. • e will or trust can designate a sum of money or certain property (for example, a vacation home or shares of stock) to Providence.

It is easy for a donor to make an estate gi from a retirement plan or an individual retirement account (IRA). e donor contacts the retirement plan administrator or IRA custodian and fills out a designation form naming a Providence foundation as the beneficiary upon the donor’s passing. In some years, tax laws have encouraged IRA owners to make tax-free lifetime gis to charity from their IRA accounts.

WHAT ARE THE BENEFITS? • e donor can easily change or revoke the estate gi by changing a beneficiary designation form.

• e will or trust can leave the “residue or remainder” of the donor’s estate to Providence, aer expenses and other gis have been paid.

• When family members or friends inherit money from a tax-qualified retirement plan or a traditional IRA oen they will have to pay income taxes on the property. Instead, if the IRA owner names Providence as the beneficiary, there will be no income taxes.

• Alternatively, the will or trust can leave a designated percentage or share of the donor’s net estate to Providence.

Other property that will not be “income taxed” at the donor’s passing is better le to family members and friends.

• A gi to Providence is deductible from the federal estate tax.

Providence Foundation Sourthern California

GIFTS FROM

WHAT ARE THE DETAILS?

WHAT ARE THE BENEFITS?

A bequest or other estate gi is not eﬀective until the donor passes away. e donor can easily revoke or change the charitable gi.

WHAT ARE THE DETAILS?

• e donor can completely enjoy his/her property, regardless of the bequest or estate gi. e “gied” property still belongs to the donor.

• Anyone can create a legacy with a bequest or estate gi. A charitable estate gi or bequest

1 2

WHAT ARE THE BENEFITS? • e donor can easily change or revoke the estate gi by changing a beneficiary designation form.

• e will or trust can leave the “residue or remainder” of the donor’s estate to Providence, aer expenses and other gis have been paid.

• Alternatively, the will or trust can leave a designated percentage or share of the donor’s net estate to Providence.

Other property that will not be “income taxed” at the donor’s passing is better le to family members and friends.

• A gi to Providence is deductible from the federal estate tax.

Providence Foundation Sourthern California

JULIAN & GLADYS Gift Planning Enriches the Lives of Others As a businessman, Julian Saunders had a knack for success. During his long career he established Saunders Ford in Mission Hills and two thriving self-storage warehouses, earning a comfortable living for his wife, Gladys, and himself. e couple also had love in their hearts for those less fortunate and an overflowing spirit of philanthropy, perhaps instilled by a charitable gi that Julian's father provided in 1949 – one that earned the gratitude of Mother Teresa. In fact, throughout their lives the couple always thought of others. Julian became a pilot whose passion for flight led him to join the Flying Samaritans, transporting medical professionals to Mexico to assist those who had no access to health care. Closer to home, Gladys also became known for her charitable deeds and her willingness to help those in need. e die was cast for the couple to support Providence in a significant way. "I am the eternal optimist," Julian once said. "It's important that every individual seek out ways to enrich his city by creating opportunities that will allow individuals living there to enrich their own lives." Julian was born to British parents in Calcutta, India. From there he moved to Australia, then to British Columbia, Canada, in his early twenties. Gladys was born in British Columbia and was raised there in a small village, Bella Coola. She and Julian met in British Columbia, married in Washington state and

eventually settled in the North San Fernando Valley in the mid 1950’s. ere, Julian followed in his father's footsteps and went to work in the auto industry as a salesman. Twenty years later he was the dealership owner. As their success grew, the couple began to support Providence through annual giving, and their gis were oen designated for emergency care. at support continued for more than two decades, even aer Gladys passed away in 2005 and Julian's death in 2011. rough his estate, Julian endowed Providence with a $7 million trust that is funded through commercial real estate in Mission Hills plus municipal and corporate bonds. is is a planned giving arrangement that enabled him to provide for his surviving spouse and support Providence with tax-free distributions over time. His generosity will strengthen Providence long into the future, fulfilling a commitment to support the Providence mission of compassionate care while paying back the community that helped the couple achieve success for so many years. "is is one of those gis that doesn't happen all the time," said Al Ghirardelli, Julian's longtime estate attorney. "All of Julian's objectives were achieved and he still had assets remaining to give to charity."

DELIA Volunteer Discovers the Value of Her Gift A brief advertisement in the local newspaper seeking volunteers was the only prompting that Delia (Del) McCulloch needed to call Providence. e California native was intrigued by the opportunity to become a “caller” for the telephone reassurance program Company Calls, a daily check-in service for older adults living alone. Company Calls oﬀered the perfect role for the woman whose childhood ambition was to become a radio actress. “I was shy,” explained Del. “I wanted to be heard, but not seen.” Del was born and raised during the Great Depression, graduated from Hollywood High School and studied radio while attending Los Angeles City College. Despite her shy nature, Del’s sense of adventure prevailed and she began a 16-year career in the United States Foreign Service. Diplomatic missions in Hong Kong and India were Del’s favorite stations, and it was while on leave from Hong Kong that Del first met future husband Paul McCulloch on an American passenger ship. Paul and Del married in November

1978 and enjoyed their late-in-life marriage until Paul passed away in 1995. Once widowed, Del – always a woman with a zest for travel, exercise and gardening – discovered her loyalty to Providence. For over a decade, Del’s involvement with Company Calls advanced the Sisters’ mission of caring for the poor and vulnerable. “I got to know people over the phone through the years,” said Del, “and they became almost like friends. ey counted on us to contact them every day.” As Del started to think about her own financial security and ability to give back, she decided to establish a charitable gi annuity with Providence. “I just wish

people realized how valuable a charitable gi annuity is,” said Del. “It gave me a good feeling that I was helping our community by supporting my local medical center. Plus, it assured me an income for the rest of my life. I was so pleased that I set up a second annuity a few years aer the first one.”

Providence Foundation Sourthern California

GIFTS THAT IT IS POSSIBLE TO MAKE A GIFT TO PROVIDENCE, BUT RETAIN A STREAM OF INCOME FROM THE “GIFTED” PROPERTY. ere is great flexibility when planning a charitable gi that provides income. • e payments may be fixed or variable amounts. • e payments may be for a person’s lifetime or for a term of years. • A stream of payments may be given to one, two, or three or more individuals chosen by the donor depending on the type of gi.

WHAT ARE THE BENEFITS? By creating a CGA, a donor can turn funds or property that is not providing much income into a guaranteed stream of payments for one or two people for the rest of their lives.

CHARITABLE REMAINDER TRUSTS

WHAT ARE THE BENEFITS? ere are substantial tax savings that make a charitable remainder trust ideal, especially if it is funded with long-term capital-gains (appreciated) property:

e annuity payments are stable regardless of changes in the economy.

• ere is an immediate tax-deduction for the value of the charitable remainder gi to Providence.

e eﬀective annuity rates oﬀered by Providence are very generous because of the significant tax savings for donors:

• When the donor transfers appreciated property to the CRT, there is no upfront capital-gains tax to be paid.

CHARITABLE GIFT ANNUITIES • e donor receives a charitable income-tax deduction for the gi portion of the CGA. • Annuity payments are partially income-tax-free, oen for many years. • If the donor uses appreciated property to fund the CGA, the donor can reduce the capital-gains tax that is due, and spread out the payment of the remaining capital-gains tax over years. • When one annuitant passes away, the other annuitant will continue to receive the same annuity amount.

WHAT ARE THE DETAILS? A charitable gi annuity (CGA) provides a safe and secure fixed income to one or two people for their lifetimes.

To create a CGA, the donor makes a permanent gi of funds or property to Providence. In return, Providence agrees to make stable, periodic payments (an “annuity”) to one or two people for their lives. When the people have passed away and the annuity ends, Providence uses the remaining funds to support its mission.

• CGA rates depend on the annuitant’s age, not on his/her medical condition or gender. • CGA programs are regulated by law and CGAs are guaranteed. Providence annuity agreements are backed by the Providence Foundation’s assets. • CGAs are flexible and can be planned to meet the donor’s needs. Payments can begin immediately or be deferred until retirement, for a higher rate.

WHAT ARE THE DETAILS? A charitable remainder trust (CRT) is a gi plan that allows a donor to create a stream of payments for one, two, three, or more people, for their lifetimes or for a specified time period (such as 20 years). Aer the payments end, the trustee of the CRT will transfer the remaining property, tax-free, to Providence. e donor creates the CRT and makes a permanent gi of funds or other property (for example, appreciated real estate) to the CRT. e CRT’s trustee manages and invests the trust property for the duration of the trust. e trustee makes periodic payments (“payouts”) to individual beneficiaries from the trust property for their lives or for a term of years. At the end of the beneficiaries’ lives or when the term of years ends, the trustee will transfer the remaining trust property, tax-free, to Providence.

• e trust property can grow tax-free. e charitable remainder trust is tax-exempt; as the trust property is sold and reinvested, there are no capital-gains or income taxes paid. If the CRT is a unitrust, this tax-free growth translates to higher payout amounts to the individual beneficiaries. • e payouts to the beneficiaries may avoid some taxation at ordinary-income tax rates. • e payout amounts are highly competitive. e payout is chosen by the donor when creating the CRT, subject to tax law restrictions. • When the charitable trust property is transferred tax-free to Providence, it is not in the donor’s estate, bypassing probate costs and fees.

e CRT’s “payout” to individual beneficiaries can be a fixed dollar amount that never changes (charitable remainder annuity trust) or a fixed percentage of the trust’s property valued annually (a charitable remainder unitrust). e choice is up to the donor creating the CRT.

Providence Foundation Sourthern California

WHAT ARE THE BENEFITS? By creating a CGA, a donor can turn funds or property that is not providing much income into a guaranteed stream of payments for one or two people for the rest of their lives.

CHARITABLE REMAINDER TRUSTS

WHAT ARE THE BENEFITS? ere are substantial tax savings that make a charitable remainder trust ideal, especially if it is funded with long-term capital-gains (appreciated) property:

e annuity payments are stable regardless of changes in the economy.

• ere is an immediate tax-deduction for the value of the charitable remainder gi to Providence.

e eﬀective annuity rates oﬀered by Providence are very generous because of the significant tax savings for donors:

• When the donor transfers appreciated property to the CRT, there is no upfront capital-gains tax to be paid.

WHAT ARE THE DETAILS? A charitable gi annuity (CGA) provides a safe and secure fixed income to one or two people for their lifetimes.

Providence Foundation Sourthern California

PHIL & BONNIE Estate Gift Provides Comfort and Caring to Others During her 65 years Bonnie Jue touched the lives of many. She was a loving wife, a devoted friend, and a committed volunteer. To honor her memory, and to carry on her legacy, her husband, Phil, chose to support Providence through planned giving aer she passed away at home on hospice care. For Phil and Bonnie, it was love at first sight. Both of them insurance professionals, they met on a blind date in 1977. Invited to the home of colleagues for dinner, they immediately clicked. "I said, 'is is it,' " Phil recalled, adding that they were married two years later. "I still remember what she wore." e couple bought a home in Burbank, and Bonnie, who was kind, fun loving and energetic, wasted little time creating a lovely backyard garden. When she became a volunteer for the Sepulveda Basin Community Garden Center, growing vegetables for the zoo primates, it was only a matter of time before the zoo asked her to create and maintain “Bonnie's Garden” on-site. “Bonnie's Garden” was a natural fit for the lifelong Burbank resident. Not only was she a master gardener, but she loved cooking, adored animals, and was passionate about volunteering. en Bonnie received a diagnosis of cancer. e disease progressed and eventually weakened Bonnie.

A team of hospice angels from Providence provided comfort, care and dignity at home during her final months.

So blessed were the couple by the care they received that Phil decided to support Providence by pledging their estate, through planned giving, to support the hospice program. "ey were caring, but they also were honest and direct—which I wanted," Phil said. "e hospice staﬀ who came to this house, no matter what time of day, were always gentle and respectful, and they never le too soon. ey were wonderful." Phil, who embraces life by singing, baking, supporting the Meals on Wheels program through his local Kiwanis Club and – of course – maintaining Bonnie's thriving backyard garden, is no stranger to hospice.

Not only did Bonnie receive outstanding hospice care, but so did Phil's father and mother. His gi to Providence in support of the program seemed a fitting way to thank those who cared for Bonnie while ensuring that others receive the same loving assistance during their own time of need. Phil knows firsthand the kind of comfort and peace families experience through hospice. "Providence wants to grow the hospice program, and it's certainly one that I believe is deserving of support," said Phil, who also assists Providence through annual giving. "I'm delighted to help out with my giving, and I know Bonnie would have supported that, too. I only wish I could do more."

A team of hospice angels from Providence provided comfort, care and dignity at home during her final months.

BOB & SUZI Generosity Benefits the Sisters’ Mission of Compassion When Providence doctors saved Bob Gulcher's life during a surgical procedure following an early bout with cancer, neither he nor his wife, Suzi, needed further encouragement to begin their 20-year legacy of giving, both financially and in service, to the mission of the Sisters. eir generosity has taken many forms. Since tendering a gi to support cardiac rehabilitation in 1990, the Gulchers have made annual giving a tradition. ey faithfully support Providence special events and have pledged funds to important hospital campaigns – including one that Bob spearheaded to raise $50 million. In addition, by choosing to designate Providence as the beneficiary of an IRA, Bob and Suzi discovered another significant way to benefit their hospital. ey also have given tirelessly of their time. Bob chaired the Foundation board of trustees, eventually becoming a trustee emeritus, while Suzi, who spearheaded the establishment of a palliative care program for Providence, serves on the Community Ministry Board, which she chaired. She also serves on the Hospice Board, chaired the Providence Mission Committee and is a member of the vitally important Ethics Committee.

"I truly believe that if we are part of the community, and we benefit from it, then it's our responsibility to use the time and talents God has given us to help those we can serve," said Suzi. "Providence is our hospital – it is part of our family." Bob and Suzi grew up in Ohio and attended Ohio

State University, where Bob majored in engineering. Aer graduation, the two found themselves working in Columbus for the aircra division of North American Aviation, which became Rockwell International. Aer Bob's first wife passed away, he and Suzi, a systems analyst, eventually began dating, announcing their engagement a month later. ey were married in 1969 and moved out west in 1979 when Bob, a chief engineer, was transferred to the company's California headquarters for the B-1 program. You might say the move was...providential. rough the years the Gulchers and their children have received outstanding care at Providence. In keeping with their commitment to repay that blessing, the couple have done their best to support clinical programs, cutting-edge technology and other hospital services, each designed to improve patient outcomes and save lives. ey enjoy giving to Providence because they can watch their gis help the hospital fulfill its compassionate mission. "It really comes down to the Sisters and their mission," Bob said. "ey have dedicated their lives to caring for people, and that inspires them. It inspires us, too, and that's a big reason why we support Providence." To Bob and Suzi Gulcher, giving is important. It is not an option for them, but rather a privilege that enables them to support the greater good. ey wouldn't have it any other way. "Knowing that people can benefit from our gis, as we've benefited from the gis of others, is a marvelous feeling," Suzi said. "You have to pay it forward, and that's what we're trying to do."

Providence Foundation Sourthern California

GIFTS OF

YOUR GIFT OF REAL ESTATE – ESPECIALLY APPRECIATED REAL ESTATE –CAN GREATLY BENEFIT THE DONOR AND PROVIDENCE.

INSURANCE CAN PROVIDE A FAR GREATER GIFT TO PROVIDENCE THAN THE OWNER/DONOR COULD AFFORD TO GIVE OUTRIGHT.

GIFTS THAT PAY INCOME

Many people have life insurance policies they no longer need. For example, a policy was taken out many years ago to protect a young family and now the children are grown. Or a policy was taken out to pay oﬀ estate taxes and under current law, the estate is not taxable. at excess insurance might provide a far greater gi to Providence than the individual policy owner/donor could aﬀord to give outright.

BARGAIN SALES WHAT ARE THE DETAILS? A bargain sale is a sale of property to Providence at less than fair market value. WHAT ARE THE BENEFITS? • A bargain sale allows the donor to receive funds from the transfer of property to Providence, but still make a charitable gi. • e donor in a bargain sale may wind up with almost the same benefits as if he/she had sold the property to a non-charitable buyer.

WHAT ARE THE DETAILS? A charitable remainder trust (CRT) or a charitable gi annuity (CGA), funded with real estate, can be used to create a stream o fpayments and reduce taxes. WHAT ARE THE BENEFITS? A donor who wants to give real estate and receive an annuity, can create a CGA. is may be an alternative to a reverse mortgage for a donor, who gives his/her house but continues to live in it. Before listing their appreciated real property for sale, many astute owners transfer some or all of the real property to a CRT that will benefit Providence someday. ey want to receive payments from the CRT property and reduce their taxes: • ere is no capital gains tax to be paid when the donor transfers appreciated real estate to the CRT. • e donor receives a tax deduction for the value of the remainder gi to charity. • While in the CRT, the property grows on a tax-free basis. If the trustee sells CRT property and reinvests the proceeds, there are no taxes to be paid. • A portion of the payments made by the CRT may avoid income taxes when received by the CRT individual beneficiary.

- A bargain sale is two transactions occurring at one time: a charitable gi and a sale of property. - e donor gets a charitable deduction from the gi part of the bargain sale. e donor’s deduction will oﬀset – maybe even eliminate – the capitalgains tax that is due on the sale portion of the transaction.

GIFTS OF REALTY WITH A RESERVED LIFE ESTATE WHAT ARE THE DETAILS? e donor makes a permanent transfer of a home, condo, vacation home or farm to Providence. Providence and the donor agree that the donor and the donor’s spouse will continue to use and enjoy the property for life. e donor will continue paying for maintenance, insurance and taxes on the property. WHAT ARE THE BENEFITS? • e donor receives a charitable tax deduction for the value of the remainder gi to Providence.

NAMING PROVIDENCE AS THE BENEFICIARY OF A LIFE INSURANCE POLICY

TRANSFERRING OWNERSHIP OF A LIFE INSURANCE POLICY TO PROVIDENCE WHAT ARE THE DETAILS? Sometimes a donor is burdened with paying premiums on a life insurance policy that is not needed. Instead, ownership of the policy can be permanently given to Providence. e gi may be made easily by filling out insurance company forms. (e donor should consult with advisors about the tax and financial consequences of the gi.) WHAT ARE THE BENEFITS? • e donor receives an income-tax deduction for the gi to Providence. • As the donor makes annual premium payments to maintain the policy, those payments are tax-deductible charitable gis. • e donor will be recognized by Providence for his/her substantial gi of insurance proceeds, regardless of the financial or accounting value of the policy.

WHAT ARE THE DETAILS? It is simple for a donor to name Providence as the beneficiary of a life insurance policy. All the donor needs to do is to fill out a beneficiary designation form supplied by the insurance company. WHAT ARE THE BENEFITS? • A gi of life insurance proceeds can be modified or revoked. • A gi of the proceeds of life insurance can provide Providence with a very large gi for comparatively little money spent by the donor. e donor can do more to support Providence than he or she thought was possible.

• is deduction will oﬀset the donor’s future payments for maintenance, insurance and taxes on the property. • e transferred real estate is not part of the donor’s estate, avoiding probate and possibly reducing the estate tax.

This brochure is an educational publication, not legal advice. Any prospective donor should seek the advice of a qualified legal, estate and /or tax professional to determine the consequences of his/her gift. 20

Providence Foundation Sourthern California

GIFTS OF

YOUR GIFT OF REAL ESTATE – ESPECIALLY APPRECIATED REAL ESTATE –CAN GREATLY BENEFIT THE DONOR AND PROVIDENCE.

INSURANCE CAN PROVIDE A FAR GREATER GIFT TO PROVIDENCE THAN THE OWNER/DONOR COULD AFFORD TO GIVE OUTRIGHT.

GIFTS THAT PAY INCOME

NAMING PROVIDENCE AS THE BENEFICIARY OF A LIFE INSURANCE POLICY

Providence Foundation Sourthern California

THE PROVIDENCE

OTHER GIFTS OF APPRECIATED STOCK AND OTHER SECURITIES WHAT ARE THE DETAILS? Giving long-term appreciated stock or other securities is better for the donor than giving the equivalent amount in cash to Providence. WHAT ARE THE BENEFITS? • When long-term appreciated property is donated to charity, the donor avoids paying a capital-gains tax on the property. is tax savings makes the “cost” to the donor of the gi lower than if the donor made an equivalent contribution of cash. e donor receives an immediate income-tax deduction for the gi.

CHARITABLE LEAD TRUSTS

• For a donor who is already making major gis to Providence, a CLT may give the donor a chance to continue those gis and save taxes when transferring property to family members. • A CLT can be planned so that it lowers income taxes paid by the donor.

ENDOWMENTS Endowment gis are Providence’s permanent funding, providing a financial anchor for each Providence ministry.

WHAT ARE THE DETAILS? • If a donor designates a gi as an endowment fund, the principal of that gi is saved and invested by a Providence foundation; it cannot be spent except in very unusual circumstances. Only the earnings, or a portion of the earnings, may be spent to support the endowment’s purpose. • To create an endowment, the donor makes a gi above a minimum threshold, designates the purpose for the endowment and names the endowment.

WHAT ARE THE BENEFITS? • e donor has created a lasting legacy.

WHAT ARE THE DETAILS? e donor creates a charitable lead trust (CLT) and transfers property to the trust. e CLT’s trustee pays income to Providence for a selected term of years or for someone’s life span. When Providence’s interest ends, the trustee transfers the CLT property to the donor or to individuals who were chosen by the donor.

As People of Providence, we reveal God's love for all, especially the poor and vulnerable, through our compassionate service.

CORE RESPECT We welcome the uniqueness and honor the dignity of every person COMPASSION We nurture the spiritual, physical and emotional well-being of one another and those we serve JUSTICE We believe everyone has a right to the basic goods of the earth EXCELLENCE We strive to transform conditions for a better tomorrow while serving the needs of today STEWARDSHIP We seek simplicity in our lives and in our work

• e endowment may grow larger. e donor and the donor’s family and friends can make additional gis to the endowment fund, honoring the donor’s intention. • Endowment gis to Providence are tax-deductible.

WHAT ARE THE BENEFITS?

A CLT allows a wealthy donor to avoid estate and gi taxes on transfers of property to family members like children and grandchildren, with the possibility of delaying the transfer of property until they are mature enough to receive it.

Pocket with card slots

www.ProvidencePowerOfGiving.org 22

THE PROVIDENCE

CHARITABLE LEAD TRUSTS

ENDOWMENTS Endowment gis are Providence’s permanent funding, providing a financial anchor for each Providence ministry.

WHAT ARE THE BENEFITS? • e donor has created a lasting legacy.

As People of Providence, we reveal God's love for all, especially the poor and vulnerable, through our compassionate service.

WHAT ARE THE BENEFITS?

www.ProvidencePowerOfGiving.org 22

Providence Holy Cross Medical Center Providence Little Company of Mary Medical Center Torrance Providence Little Company of Mary Medical Center San Pedro Providence Saint Joseph Medical Center Providence Tarzana Medical Center Providence TrinityCare Hospice Providence High School

F O R M O R E I N F O R M AT I O N Providence Holy Cross • Providence Saint Joseph • Providence Tarzana The Office of the Director of Planned Giving, Valley

818.847.4678 or 818.847.4673 Providence Little Company of Mary /Torrance • San Pedro The Office of the Director of Planned Giving, South Bay

310.514.5330 or 310.303.5340 Providence TrinityCare Hospice Valley - 818.847.4673 South Bay - 310.543.3440

www.ProvidencePowerOfGiving.org We are grateful for the charitable support we receive from our friends in the community. If you wish to no longer receive Foundation communications, please let us know by calling (818) 847-4673, faxing (818) 847-4672, emailing CAFoundation.OptOut@providence.org, or writing to Annual Giving Coordinator, Providence Foundations-Southern California, 501 South Buena Vista Street, Burbank CA 91505. Please allow 4-6 weeks to honor this request.