OFCARE&COMPASSION

Providence Foundation Sourthern California 3

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

WHAT ARE THE TYPES OF

DR. SAMUEL & BEE-DEIt 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.

DELIAAs 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.

JULIAN & GLADYS

It's important that every individual seek out ways to enrichhis city by creating opportunitiesthat will allow individuals livingthere to enrich their own lives.

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

2

JAVIER & MARIAThe care that

Providence has given ourfamily has been

wonderful and we'rehappy to be able to give

something back.We support Providence!

PHIL & BONNIEI'm delighted to help outwith my giving, and I knowBonnie would have sup-ported that, too. I only wishI could do more.

CIRCLE OF

e power of creating a legacy is extraordinary.ere’s no better feeling than giving from yourheart to bring hope and health to others.

Since 1943, Providence in Southern Californiahas been responding to the unique needs ofour communities, caring for the sick and vulnerable. is history of high-quality, compassionate care is built on the generosityof people like you. Legacy gis strengthen ourhealthcare services and extend the outreach of the Providence mission.

e following stories reflect the powerfullegacy of hope and healing others have provided for succeeding generations. Pleasejoin us in supporting a future of excellence andcompassion.

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

CREATING A

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.

www.ProvidencePowerOfGiving.org

Providence Foundation Sourthern California 3

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

WHAT ARE THE TYPES OF

DR. SAMUEL & BEE-DEIt 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.

DELIAAs 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.

JULIAN & GLADYS

It's important that every individual seek out ways to enrichhis city by creating opportunitiesthat will allow individuals livingthere to enrich their own lives.

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

2

JAVIER & MARIAThe care that

Providence has given ourfamily has been

wonderful and we'rehappy to be able to give

something back.We support Providence!

PHIL & BONNIEI'm delighted to help outwith my giving, and I knowBonnie would have sup-ported that, too. I only wishI could do more.

CIRCLE OF

e power of creating a legacy is extraordinary.ere’s no better feeling than giving from yourheart to bring hope and health to others.

Since 1943, Providence in Southern Californiahas been responding to the unique needs ofour communities, caring for the sick and vulnerable. is history of high-quality, compassionate care is built on the generosityof people like you. Legacy gis strengthen ourhealthcare services and extend the outreach of the Providence mission.

e following stories reflect the powerfullegacy of hope and healing others have provided for succeeding generations. Pleasejoin us in supporting a future of excellence andcompassion.

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

CREATING A

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.

www.ProvidencePowerOfGiving.org

4

Javier and Maria Uribe smile at the way things turnedout. As a young man Javier was unable to secure asmall bank loan to start an automobile paint and repairbusiness, so his father helped out. e result was 1-DayPaint & Body Centers, which today has 25 shops, haspainted more than one million cars, and was a spring-board for the couple's ability to assist others.

"We were very fortunate right from the beginning – ina little over 15 years we had 15 shops," Javier saidproudly. "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 aparty to better acquaint the two, and they quickly hit itoff. "I thought he was very good looking," Maria saidof Javier, whose smile is infectious. ey were marriedtwo years later.

Javier's first job was with legendary Earl Scheib Paintand Body, where he quickly assumed a managementposition. Several years later, aer gaining some knowledge of the business and a wealth of experience,Javier founded 1-Day Paint & Body in 1967, later sellingreal estate as well. e Uribes haven't looked back.

e couple's involvement with Providence began whentheir two daughters and son were born in quick succession, each of them at Providence and eachthrough caesarean section. Over the years both Javierand Maria also have been treated there, and in 1992Maria was asked to join the Providence FoundationBoard of Governors, which she eventually chaired; their

daughter, Teresa McGilvray, joined her on the Board ofGovernors years later. Javier and Maria, who also havehosted "friend-raising" events at their home, havemade many contributions to Providence, includinggenerous annual distributions through a charitableIRA rollover. ey began giving philanthropically, as their parents taught them tothrough example, for one simple but very importantreason.

"In its core values Providence had everythingI was looking for," said Maria. "ose corevalues are respect, compassion, justice, excellence and stewardship. In the years thatI've been on the board Providence has reallyworked hard to maintain those core valuesand to fulfill its mission of compassionatecare, and we wholeheartedly support that."

Indeed, Maria and Javier supported the Disney FamilyCancer Center capital campaign, in addition to Phase Iand Phase II of the Neuroscience campaign. Maria alsoserves on the Neuroscience campaign committee.

Javier, who has been treated several times at Providenceand has seen those tenets in play up close, describedhis love for Providence succinctly.

"e care that Providence has given our family hasbeen wonderful and we're happy to be able to givesomething back," he said, adding emphatically, "I support Providence!"

JAVIER & MARIA

Providence Core Values Inspire Philanthropy

4

Javier and Maria Uribe smile at the way things turnedout. As a young man Javier was unable to secure asmall bank loan to start an automobile paint and repairbusiness, so his father helped out. e result was 1-DayPaint & Body Centers, which today has 25 shops, haspainted more than one million cars, and was a spring-board for the couple's ability to assist others.

"We were very fortunate right from the beginning – ina little over 15 years we had 15 shops," Javier saidproudly. "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 aparty to better acquaint the two, and they quickly hit itoff. "I thought he was very good looking," Maria saidof Javier, whose smile is infectious. ey were marriedtwo years later.

Javier's first job was with legendary Earl Scheib Paintand Body, where he quickly assumed a managementposition. Several years later, aer gaining some knowledge of the business and a wealth of experience,Javier founded 1-Day Paint & Body in 1967, later sellingreal estate as well. e Uribes haven't looked back.

e couple's involvement with Providence began whentheir two daughters and son were born in quick succession, each of them at Providence and eachthrough caesarean section. Over the years both Javierand Maria also have been treated there, and in 1992Maria was asked to join the Providence FoundationBoard of Governors, which she eventually chaired; their

daughter, Teresa McGilvray, joined her on the Board ofGovernors years later. Javier and Maria, who also havehosted "friend-raising" events at their home, havemade many contributions to Providence, includinggenerous annual distributions through a charitableIRA rollover. ey began giving philanthropically, as their parents taught them tothrough example, for one simple but very importantreason.

"In its core values Providence had everythingI was looking for," said Maria. "ose corevalues are respect, compassion, justice, excellence and stewardship. In the years thatI've been on the board Providence has reallyworked hard to maintain those core valuesand to fulfill its mission of compassionatecare, and we wholeheartedly support that."

Indeed, Maria and Javier supported the Disney FamilyCancer Center capital campaign, in addition to Phase Iand Phase II of the Neuroscience campaign. Maria alsoserves on the Neuroscience campaign committee.

Javier, who has been treated several times at Providenceand has seen those tenets in play up close, describedhis love for Providence succinctly.

"e care that Providence has given our family hasbeen wonderful and we're happy to be able to givesomething back," he said, adding emphatically, "I support Providence!"

JAVIER & MARIA

Providence Core Values Inspire Philanthropy

Providence Foundation Sourthern California 7

Even while in medical school at the University of thePhilippines, Dr. Samuel Lim's childhood love formathematics and engineering never diminished. Hespent his summer vacations taking advanced mathematics courses and dreamed of a career wherehe could combine mathematics, engineering and medicine. e advent of computerized tomography (CT)and an invitation to fill an unexpected neuroradiologistvacancy at a Providence hospital forged a path to fulfillthis dream.

Sam and Bee-De met in 1965 at an international student event at the University of Washington, whereBee-De earned her Master of Arts in Political Scienceand Dr. Lim was a research fellow. An assistant professorof neuroradiology at the University of Miami MedicalSchool before joining the Providence medical staff in1973, Dr. Lim remained on staff at Providence until hisretirement 25 years later. Along the way, the couplesuccessfully raised three children.

Soon aer Dr. Lim came to Providence, CT was introduced into clinical practice, serving as a cutting-edge and important diagnostic instrument to improvepatient care. To Dr. Lim it was the perfect combinationof mathematics, engineering and medicine. When theSisters endorsed his request to purchase the first CTscanner in Southern California, followed by a magneticresonance imaging (MRI) machine a few years later, hesaw his dream realized. Dr. Lim is eternally grateful to the Sisters for their vision andwisdom in consistently supporting advancedtechnology for patient care.

e Lims’ philanthropic support began soon aer Dr. Lim joined Providence and has included campaigngis, annual giving, support for events, and the creationof the Dr. Samuel T. Lim Family Endowment. Proceedsfrom their generous endowment will benefit Providencein 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. "Providencesaved my life," Dr. Lim said of the open-heart surgeryhe 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 heretoday," she said.

"ere are many ways that people can contribute, giving their time, energy, talentand treasure. is is how we believe we canbest help Providence which has been so closeto our hearts for so many years.”

Indeed, planned giving is the lifeblood of any outstanding healthcare organization. e Lims recognizethis and are doing what they can to ensure that Providence continues to fulfill its healing mission intothe future. "It is clear to us that Providence should be anatural recipient of our giving,” said Dr. Lim. “We planto be loyal and support Providence as long as we'reable to."

DR. SAMUEL & BEE-DE

A Fulfilling Medical Career Leads to Endowment Gift

Providence Foundation Sourthern California 7

Even while in medical school at the University of thePhilippines, Dr. Samuel Lim's childhood love formathematics and engineering never diminished. Hespent his summer vacations taking advanced mathematics courses and dreamed of a career wherehe could combine mathematics, engineering and medicine. e advent of computerized tomography (CT)and an invitation to fill an unexpected neuroradiologistvacancy at a Providence hospital forged a path to fulfillthis dream.

Sam and Bee-De met in 1965 at an international student event at the University of Washington, whereBee-De earned her Master of Arts in Political Scienceand Dr. Lim was a research fellow. An assistant professorof neuroradiology at the University of Miami MedicalSchool before joining the Providence medical staff in1973, Dr. Lim remained on staff at Providence until hisretirement 25 years later. Along the way, the couplesuccessfully raised three children.

Soon aer Dr. Lim came to Providence, CT was introduced into clinical practice, serving as a cutting-edge and important diagnostic instrument to improvepatient care. To Dr. Lim it was the perfect combinationof mathematics, engineering and medicine. When theSisters endorsed his request to purchase the first CTscanner in Southern California, followed by a magneticresonance imaging (MRI) machine a few years later, hesaw his dream realized. Dr. Lim is eternally grateful to the Sisters for their vision andwisdom in consistently supporting advancedtechnology for patient care.

e Lims’ philanthropic support began soon aer Dr. Lim joined Providence and has included campaigngis, annual giving, support for events, and the creationof the Dr. Samuel T. Lim Family Endowment. Proceedsfrom their generous endowment will benefit Providencein 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. "Providencesaved my life," Dr. Lim said of the open-heart surgeryhe 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 heretoday," she said.

"ere are many ways that people can contribute, giving their time, energy, talentand treasure. is is how we believe we canbest help Providence which has been so closeto our hearts for so many years.”

Indeed, planned giving is the lifeblood of any outstanding healthcare organization. e Lims recognizethis and are doing what they can to ensure that Providence continues to fulfill its healing mission intothe future. "It is clear to us that Providence should be anatural recipient of our giving,” said Dr. Lim. “We planto be loyal and support Providence as long as we'reable to."

DR. SAMUEL & BEE-DE

A Fulfilling Medical Career Leads to Endowment Gift

Providence Foundation Sourthern California 9

GIFTS FROM

WHAT ARE THE DETAILS?

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 orIRA custodian and fills out a designation form naming aProvidence foundation as the beneficiary upon the donor’spassing.

In some years, tax laws have encouraged IRA owners tomake tax-free lifetime gis 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.

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

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.

BEQUESTS &

WHAT ARE THE BENEFITS?A bequest or other estate gi is not effective until the donor passes away. edonor can easily revoke or change the charitable gi.

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

•Anyone can create a legacy with a bequestor estate gi. A charitable estate gi or bequest does not have to be of a certain size and the donor does not have to be wealthy to make a difference.

A GIFT BY WILL OR FROM YOUR ESTATE IS EASY TO MAKE ANDCREATES A LASTING LEGACY.

• 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.

• 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.

• e will or trust can leave the “residue or remainder”of the donor’s estate to Providence, aer expenses and other gis have been paid.

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

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

1

2

A gi from your estate will have an impact on Providence beyond your years. It is by this generousact, that your family and friends will remember whatwas important to you: helping others and strengthening your community. A gi by will or fromyour estate to Providence is an enduring statement ofyour values.

WHAT ARE THE DETAILS?

A bequest is a gi from a will or from an amendmentto a will. A bequest does not take effect until the donorhas 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 fora donor to make a gi to Providencefrom a living trust that will not take effect until the donor has passed away.

ere are other simple ways for donors tomake estate gis to Providence. Brokerage,financial accounts and other property canbe owned by the donor with a “payable ondeath” or “transfer on death” title. With a“transfer on death” or “payable on death”title, the property goes to Providence uponthe 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.

8

Providence Foundation Sourthern California 9

GIFTS FROM

WHAT ARE THE DETAILS?

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 orIRA custodian and fills out a designation form naming aProvidence foundation as the beneficiary upon the donor’spassing.

In some years, tax laws have encouraged IRA owners tomake tax-free lifetime gis 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.

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

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.

BEQUESTS &

WHAT ARE THE BENEFITS?A bequest or other estate gi is not effective until the donor passes away. edonor can easily revoke or change the charitable gi.

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

•Anyone can create a legacy with a bequestor estate gi. A charitable estate gi or bequest does not have to be of a certain size and the donor does not have to be wealthy to make a difference.

A GIFT BY WILL OR FROM YOUR ESTATE IS EASY TO MAKE ANDCREATES A LASTING LEGACY.

• 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.

• 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.

• e will or trust can leave the “residue or remainder”of the donor’s estate to Providence, aer expenses and other gis have been paid.

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

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

1

2

A gi from your estate will have an impact on Providence beyond your years. It is by this generousact, that your family and friends will remember whatwas important to you: helping others and strengthening your community. A gi by will or fromyour estate to Providence is an enduring statement ofyour values.

WHAT ARE THE DETAILS?

A bequest is a gi from a will or from an amendmentto a will. A bequest does not take effect until the donorhas 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 fora donor to make a gi to Providencefrom a living trust that will not take effect until the donor has passed away.

ere are other simple ways for donors tomake estate gis to Providence. Brokerage,financial accounts and other property canbe owned by the donor with a “payable ondeath” or “transfer on death” title. With a“transfer on death” or “payable on death”title, the property goes to Providence uponthe 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.

8

10

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 livingfor his wife, Gladys, and himself. e couple also hadlove in their hearts for those less fortunate and anoverflowing spirit of philanthropy, perhaps instilledby 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 alwaysthought of others. Julian became a pilot whose passion for flight led him to join the Flying Samaritans,transporting medical professionals to Mexico to assistthose who had no access to health care. Closer tohome, Gladys also became known for her charitabledeeds and her willingness to help those in need. edie 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 allowindividuals 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 wasborn in British Columbia and was raised there in asmall village, Bella Coola. She and Julian met inBritish Columbia, married in Washington state and

eventually settled in the North San Fernando Valleyin the mid 1950’s. ere, Julian followed in his father's footsteps and went to work in the auto industryas a salesman. Twenty years later he was the dealershipowner.

As their success grew, the couple began to supportProvidence through annual giving, and their giswere oen designated for emergency care. at support continued for more than two decades, even aer Gladys passed away in 2005 and Julian'sdeath in 2011.

rough his estate, Julian endowed Providence with a $7 million trust that is funded through commercialreal estate in Mission Hills plus municipal and corporate bonds.

is is a planned giving arrangement that enabledhim to provide for his surviving spouse and supportProvidence with tax-free distributions over time. Hisgenerosity will strengthen Providence long into thefuture, fulfilling a commitment to support the Providence mission of compassionate care while payingback the community that helped the couple achieve success for so many years.

"is is one of those gis that doesn't happen all thetime," said Al Ghirardelli, Julian's longtime estate attorney. "All of Julian's objectives were achieved andhe still had assets remaining to give to charity."

JULIAN & GLADYS

Gift Planning Enriches the Lives of Others

10

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 livingfor his wife, Gladys, and himself. e couple also hadlove in their hearts for those less fortunate and anoverflowing spirit of philanthropy, perhaps instilledby 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 alwaysthought of others. Julian became a pilot whose passion for flight led him to join the Flying Samaritans,transporting medical professionals to Mexico to assistthose who had no access to health care. Closer tohome, Gladys also became known for her charitabledeeds and her willingness to help those in need. edie 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 allowindividuals 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 wasborn in British Columbia and was raised there in asmall village, Bella Coola. She and Julian met inBritish Columbia, married in Washington state and

eventually settled in the North San Fernando Valleyin the mid 1950’s. ere, Julian followed in his father's footsteps and went to work in the auto industryas a salesman. Twenty years later he was the dealershipowner.

As their success grew, the couple began to supportProvidence through annual giving, and their giswere oen designated for emergency care. at support continued for more than two decades, even aer Gladys passed away in 2005 and Julian'sdeath in 2011.

rough his estate, Julian endowed Providence with a $7 million trust that is funded through commercialreal estate in Mission Hills plus municipal and corporate bonds.

is is a planned giving arrangement that enabledhim to provide for his surviving spouse and supportProvidence with tax-free distributions over time. Hisgenerosity will strengthen Providence long into thefuture, fulfilling a commitment to support the Providence mission of compassionate care while payingback the community that helped the couple achieve success for so many years.

"is is one of those gis that doesn't happen all thetime," said Al Ghirardelli, Julian's longtime estate attorney. "All of Julian's objectives were achieved andhe still had assets remaining to give to charity."

JULIAN & GLADYS

Gift Planning Enriches the Lives of Others

Providence Foundation Sourthern California 1312

A brief advertisement in the local newspaper seekingvolunteers was the only prompting that Delia (Del)McCulloch needed to call Providence. e Californianative was intrigued by the opportunity to become a“caller” for the telephone reassurance program Company Calls, a daily check-in service for olderadults living alone.

Company Calls offered the perfect role for the womanwhose childhood ambition was to become a radio actress. “I was shy,” explained Del. “I wanted to beheard, but not seen.”

Del was born and raised during the Great Depression,graduated from Hollywood High School and studiedradio while attending Los Angeles City College. Despite her shy nature, Del’s sense of adventure prevailed and she began a 16-year career in theUnited States Foreign Service. Diplomatic missions inHong Kong and India were Del’s favorite stations, andit was while on leave from Hong Kong that Del firstmet future husband Paul McCulloch on an Americanpassenger ship. Paul and Del married in November

1978 and enjoyed their late-in-life marriage until Paulpassed away in 1995.

Once widowed, Del – always a woman with a zest fortravel, exercise and gardening – discovered her loyaltyto Providence. For over a decade, Del’s involvementwith Company Calls advanced the Sisters’ mission ofcaring 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 countedon us to contact them every day.”

As Del started to think about her own financial securityand ability to give back, she decided to establish a charitable gi annuity with Providence. “I just wishpeople realized how valuable a charitablegi annuity is,” said Del. “It gave me a goodfeeling that I was helping our community bysupporting my local medical center. Plus, itassured me an income for the rest of my life.I was so pleased that I set up a second annuitya few years aer the first one.”

DELIAVolunteer Discovers the Value of Her Gift

Providence Foundation Sourthern California 1312

A brief advertisement in the local newspaper seekingvolunteers was the only prompting that Delia (Del)McCulloch needed to call Providence. e Californianative was intrigued by the opportunity to become a“caller” for the telephone reassurance program Company Calls, a daily check-in service for olderadults living alone.

Company Calls offered the perfect role for the womanwhose childhood ambition was to become a radio actress. “I was shy,” explained Del. “I wanted to beheard, but not seen.”

Del was born and raised during the Great Depression,graduated from Hollywood High School and studiedradio while attending Los Angeles City College. Despite her shy nature, Del’s sense of adventure prevailed and she began a 16-year career in theUnited States Foreign Service. Diplomatic missions inHong Kong and India were Del’s favorite stations, andit was while on leave from Hong Kong that Del firstmet future husband Paul McCulloch on an Americanpassenger ship. Paul and Del married in November

1978 and enjoyed their late-in-life marriage until Paulpassed away in 1995.

Once widowed, Del – always a woman with a zest fortravel, exercise and gardening – discovered her loyaltyto Providence. For over a decade, Del’s involvementwith Company Calls advanced the Sisters’ mission ofcaring 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 countedon us to contact them every day.”

As Del started to think about her own financial securityand ability to give back, she decided to establish a charitable gi annuity with Providence. “I just wishpeople realized how valuable a charitablegi annuity is,” said Del. “It gave me a goodfeeling that I was helping our community bysupporting my local medical center. Plus, itassured me an income for the rest of my life.I was so pleased that I set up a second annuitya few years aer the first one.”

DELIAVolunteer Discovers the Value of Her Gift

GIFTS THAT

ere is great flexibility when planning a charitable githat 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.

CHARITABLE GIFT ANNUITIES

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 toProvidence. In return, Providence agreesto make stable, periodic payments (an “annuity”) to one or two people for theirlives. When the people have passed awayand the annuity ends, Providence uses theremaining funds to support its mission.

IT IS POSSIBLE TO MAKE A GIFT TO PROVIDENCE, BUT RETAIN A STREAM OF INCOME FROM THE “GIFTED” PROPERTY.

WHAT ARE THE BENEFITS?By creating a CGA, a donor can turn funds or propertythat is not providing much income into a guaranteedstream of payments for one or two people for the restof their lives.

e annuity payments are stable regardless of changesin the economy.

e effective annuity rates offered by Providence arevery generous because of the significant tax savings fordonors:

• e donor receives a charitable income-tax deduction for the gi portion of the CGA.

• Annuity payments are partially income-tax-free, oen 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 annuitantwill continue to receive the same annuity amount.

• 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.

CHARITABLE REMAINDER TRUSTS

WHAT ARE THE DETAILS?A charitable remainder trust (CRT) is a gi plan thatallows a donor to create a stream of payments for one,two, three, or more people, for their lifetimes or for aspecified time period (such as 20 years). Aer the payments end, the trustee of the CRT will transfer theremaining property, tax-free, to Providence.

e donor creates the CRT and makes a permanentgi of funds or other property (for example, appreciatedreal estate) to the CRT. e CRT’s trustee managesand invests the trust property for the duration of thetrust. e trustee makes periodic payments (“payouts”)to individual beneficiaries from the trust property fortheir lives or for a term of years. At the end of thebeneficiaries’ lives or when the term of years ends, thetrustee will transfer the remaining trust property,tax-free, to Providence.

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

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

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

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

• e trust property can grow tax-free. e charitable remainder trust is tax-exempt; as the trust propertyis 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 amountsto 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.

14 Providence Foundation Sourthern California 15

GIFTS THAT

ere is great flexibility when planning a charitable githat 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.

CHARITABLE GIFT ANNUITIES

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 toProvidence. In return, Providence agreesto make stable, periodic payments (an “annuity”) to one or two people for theirlives. When the people have passed awayand the annuity ends, Providence uses theremaining funds to support its mission.

IT IS POSSIBLE TO MAKE A GIFT TO PROVIDENCE, BUT RETAIN A STREAM OF INCOME FROM THE “GIFTED” PROPERTY.

WHAT ARE THE BENEFITS?By creating a CGA, a donor can turn funds or propertythat is not providing much income into a guaranteedstream of payments for one or two people for the restof their lives.

e annuity payments are stable regardless of changesin the economy.

e effective annuity rates offered by Providence arevery generous because of the significant tax savings fordonors:

• e donor receives a charitable income-tax deduction for the gi portion of the CGA.

• Annuity payments are partially income-tax-free, oen 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 annuitantwill continue to receive the same annuity amount.

• 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.

CHARITABLE REMAINDER TRUSTS

WHAT ARE THE DETAILS?A charitable remainder trust (CRT) is a gi plan thatallows a donor to create a stream of payments for one,two, three, or more people, for their lifetimes or for aspecified time period (such as 20 years). Aer the payments end, the trustee of the CRT will transfer theremaining property, tax-free, to Providence.

e donor creates the CRT and makes a permanentgi of funds or other property (for example, appreciatedreal estate) to the CRT. e CRT’s trustee managesand invests the trust property for the duration of thetrust. e trustee makes periodic payments (“payouts”)to individual beneficiaries from the trust property fortheir lives or for a term of years. At the end of thebeneficiaries’ lives or when the term of years ends, thetrustee will transfer the remaining trust property,tax-free, to Providence.

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

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

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

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

• e trust property can grow tax-free. e charitable remainder trust is tax-exempt; as the trust propertyis 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 amountsto 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.

14 Providence Foundation Sourthern California 15

16

During her 65 years Bonnie Jue touched the lives ofmany. She was a loving wife, a devoted friend, and acommitted volunteer. To honor her memory, and tocarry on her legacy, her husband, Phil, chose to support Providence through planned giving aer shepassed away at home on hospice care.

For Phil and Bonnie, it was love at first sight. Both ofthem insurance professionals, they met on a blinddate in 1977. Invited to the home of colleagues fordinner, they immediately clicked. "I said, 'is is it,' "Phil recalled, adding that they were married twoyears later. "I still remember what she wore."

e couple bought a home in Burbank, and Bonnie,who was kind, fun loving and energetic, wasted littletime creating a lovely backyard garden. When she be-came a volunteer for the Sepulveda Basin Commu-nity Garden Center, growing vegetables for the zooprimates, it was only a matter of time before the zooasked her to create and maintain “Bonnie's Garden”on-site.

“Bonnie's Garden” was a natural fit for the lifelongBurbank resident. Not only was she a master gar-dener, but she loved cooking, adored animals, andwas passionate about volunteering.

en Bonnie received a diagnosis of cancer. e dis-ease progressed and eventually weakened Bonnie.

A team of hospice angels from Providenceprovided comfort, care and dignity at homeduring her final months.

So blessed were the couple by the care they receivedthat Phil decided to support Providence by pledgingtheir estate, through planned giving, to support thehospice program.

"ey were caring, but they also were honest and di-rect—which I wanted," Phil said. "e hospice staffwho came to this house, no matter what time of day,were always gentle and respectful, and they never letoo soon. ey were wonderful."

Phil, who embraces life by singing, baking, support-ing the Meals on Wheels program through his localKiwanis Club and – of course – maintaining Bonnie'sthriving backyard garden, is no stranger to hospice.

Not only did Bonnie receive outstandinghospice care, but so did Phil's father andmother. His gi to Providence in support ofthe program seemed a fitting way to thankthose who cared for Bonnie while ensuringthat others receive the same loving assistance during their own time of need.

Phil knows firsthand the kind of comfort and peacefamilies experience through hospice.

"Providence wants to grow the hospice program, andit's certainly one that I believe is deserving of sup-port," said Phil, who also assists Providence throughannual giving. "I'm delighted to help out with my giv-ing, and I know Bonnie would have supported that,too. I only wish I could do more."

PHIL & BONNIE

Estate Gift Provides Comfort and Caring to Others

16

During her 65 years Bonnie Jue touched the lives ofmany. She was a loving wife, a devoted friend, and acommitted volunteer. To honor her memory, and tocarry on her legacy, her husband, Phil, chose to support Providence through planned giving aer shepassed away at home on hospice care.

For Phil and Bonnie, it was love at first sight. Both ofthem insurance professionals, they met on a blinddate in 1977. Invited to the home of colleagues fordinner, they immediately clicked. "I said, 'is is it,' "Phil recalled, adding that they were married twoyears later. "I still remember what she wore."

e couple bought a home in Burbank, and Bonnie,who was kind, fun loving and energetic, wasted littletime creating a lovely backyard garden. When she be-came a volunteer for the Sepulveda Basin Commu-nity Garden Center, growing vegetables for the zooprimates, it was only a matter of time before the zooasked her to create and maintain “Bonnie's Garden”on-site.

“Bonnie's Garden” was a natural fit for the lifelongBurbank resident. Not only was she a master gar-dener, but she loved cooking, adored animals, andwas passionate about volunteering.

en Bonnie received a diagnosis of cancer. e dis-ease progressed and eventually weakened Bonnie.

A team of hospice angels from Providenceprovided comfort, care and dignity at homeduring her final months.

So blessed were the couple by the care they receivedthat Phil decided to support Providence by pledgingtheir estate, through planned giving, to support thehospice program.

"ey were caring, but they also were honest and di-rect—which I wanted," Phil said. "e hospice staffwho came to this house, no matter what time of day,were always gentle and respectful, and they never letoo soon. ey were wonderful."

Phil, who embraces life by singing, baking, support-ing the Meals on Wheels program through his localKiwanis Club and – of course – maintaining Bonnie'sthriving backyard garden, is no stranger to hospice.

Not only did Bonnie receive outstandinghospice care, but so did Phil's father andmother. His gi to Providence in support ofthe program seemed a fitting way to thankthose who cared for Bonnie while ensuringthat others receive the same loving assistance during their own time of need.

Phil knows firsthand the kind of comfort and peacefamilies experience through hospice.

"Providence wants to grow the hospice program, andit's certainly one that I believe is deserving of sup-port," said Phil, who also assists Providence throughannual giving. "I'm delighted to help out with my giv-ing, and I know Bonnie would have supported that,too. I only wish I could do more."

PHIL & BONNIE

Estate Gift Provides Comfort and Caring to Others

When Providence doctors saved Bob Gulcher's lifeduring a surgical procedure following an early boutwith cancer, neither he nor his wife, Suzi, needed further encouragement to begin their 20-year legacyof giving, both financially and in service, to the missionof the Sisters.

eir generosity has taken many forms. Since tenderinga gi to support cardiac rehabilitation in 1990, theGulchers have made annual giving a tradition. eyfaithfully support Providence special events and havepledged funds to important hospital campaigns – in-cluding one that Bob spearheaded to raise $50 million.In addition, by choosing to designate Providence asthe beneficiary of an IRA, Bob and Suzi discoveredanother significant way to benefit their hospital.

ey also have given tirelessly of their time. Bobchaired the Foundation board of trustees, eventuallybecoming a trustee emeritus, while Suzi, who spearheaded the establishment of a palliative careprogram for Providence, serves on the CommunityMinistry Board, which she chaired. She also serves onthe Hospice Board, chaired the Providence MissionCommittee and is a member of the vitally importantEthics Committee.

"I truly believe that if we are part of thecommunity, and we benefit from it, then it'sour responsibility to use the time and talents God has given us to help those wecan serve," said Suzi. "Providence is ourhospital – it is part of our family."

Bob and Suzi grew up in Ohio and attended Ohio

State University, where Bob majored in engineering.Aer graduation, the two found themselves workingin Columbus for the aircra division of North American Aviation, which became Rockwell International. Aer Bob's first wife passed away, heand Suzi, a systems analyst, eventually began dating, announcing their engagement a month later. eywere married in 1969 and moved out west in 1979when Bob, a chief engineer, was transferred to thecompany's California headquarters for the B-1 program. You might say the move was...providential.

rough the years the Gulchers and their childrenhave received outstanding care at Providence. Inkeeping with their commitment to repay that blessing,the couple have done their best to support clinicalprograms, cutting-edge technology and other hospitalservices, each designed to improve patient outcomesand save lives. ey enjoy giving to Providence because they can watch their gis help the hospitalfulfill its compassionate mission.

"It really comes down to the Sisters and their mission,"Bob said. "ey have dedicated their lives to caring forpeople, and that inspires them. It inspires us, too, andthat's a big reason why we support Providence."

To Bob and Suzi Gulcher, giving is important. It isnot an option for them, but rather a privilege that enables them to support the greater good. eywouldn't have it any other way.

"Knowing that people can benefit from our gis, aswe've benefited from the gis of others, is a marvelous feeling," Suzi said. "You have to pay it forward, and that's what we're trying to do."

BOB & SUZI

Generosity Benefits the Sisters’ Mission of Compassion

Providence Foundation Sourthern California 19

When Providence doctors saved Bob Gulcher's lifeduring a surgical procedure following an early boutwith cancer, neither he nor his wife, Suzi, needed further encouragement to begin their 20-year legacyof giving, both financially and in service, to the missionof the Sisters.

eir generosity has taken many forms. Since tenderinga gi to support cardiac rehabilitation in 1990, theGulchers have made annual giving a tradition. eyfaithfully support Providence special events and havepledged funds to important hospital campaigns – in-cluding one that Bob spearheaded to raise $50 million.In addition, by choosing to designate Providence asthe beneficiary of an IRA, Bob and Suzi discoveredanother significant way to benefit their hospital.

ey also have given tirelessly of their time. Bobchaired the Foundation board of trustees, eventuallybecoming a trustee emeritus, while Suzi, who spearheaded the establishment of a palliative careprogram for Providence, serves on the CommunityMinistry Board, which she chaired. She also serves onthe Hospice Board, chaired the Providence MissionCommittee and is a member of the vitally importantEthics Committee.

"I truly believe that if we are part of thecommunity, and we benefit from it, then it'sour responsibility to use the time and talents God has given us to help those wecan serve," said Suzi. "Providence is ourhospital – it is part of our family."

Bob and Suzi grew up in Ohio and attended Ohio

State University, where Bob majored in engineering.Aer graduation, the two found themselves workingin Columbus for the aircra division of North American Aviation, which became Rockwell International. Aer Bob's first wife passed away, heand Suzi, a systems analyst, eventually began dating, announcing their engagement a month later. eywere married in 1969 and moved out west in 1979when Bob, a chief engineer, was transferred to thecompany's California headquarters for the B-1 program. You might say the move was...providential.

rough the years the Gulchers and their childrenhave received outstanding care at Providence. Inkeeping with their commitment to repay that blessing,the couple have done their best to support clinicalprograms, cutting-edge technology and other hospitalservices, each designed to improve patient outcomesand save lives. ey enjoy giving to Providence because they can watch their gis help the hospitalfulfill its compassionate mission.

"It really comes down to the Sisters and their mission,"Bob said. "ey have dedicated their lives to caring forpeople, and that inspires them. It inspires us, too, andthat's a big reason why we support Providence."

To Bob and Suzi Gulcher, giving is important. It isnot an option for them, but rather a privilege that enables them to support the greater good. eywouldn't have it any other way.

"Knowing that people can benefit from our gis, aswe've benefited from the gis of others, is a marvelous feeling," Suzi said. "You have to pay it forward, and that's what we're trying to do."

BOB & SUZI

Generosity Benefits the Sisters’ Mission of Compassion

Providence Foundation Sourthern California 19

GIFTS OF

NAMING PROVIDENCE AS THE BENEFICIARY OF A LIFE INSURANCEPOLICY

WHAT ARE THE DETAILS?It is simple for a donor to name Providence as the beneficiary of a life insurance policy. All the donorneeds to do is to fill out a beneficiary designation formsupplied 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.

Many people have life insurance policies they nolonger need. For example, a policy was taken outmany years ago to protect a young family and now thechildren are grown. Or a policy was taken out to payoff estate taxes and under current law, the estate is nottaxable. at excess insurance might provide a fargreater gi to Providence than the individual policyowner/donor could afford to give outright.

TRANSFERRING OWNERSHIP OF A LIFEINSURANCE POLICY TO PROVIDENCEWHAT ARE THE DETAILS?Sometimes a donor is burdened with paying premiumson a life insurance policy that is not needed. Instead,ownership of the policy can be permanently given toProvidence. e gi may be made easily by filling outinsurance company forms. (e donor should consultwith advisors about the tax and financial consequencesof 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 gis.

• 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.

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.

GIFTS OF

GIFTS THAT PAY INCOME

WHAT ARE THE DETAILS?A charitable remainder trust (CRT) or a charitable giannuity (CGA), funded with real estate, can be used tocreate a stream o f payments and reduce taxes.

WHAT ARE THE BENEFITS?A donor who wants to give real estate and receive anannuity, can create a CGA. is may be an alternative to a reverse mortgage for a donor, whogives his/her house but continues to live in it.

Before listing their appreciated real property forsale, many astute owners transfer some or all of thereal property to a CRT that will benefit Providencesomeday. ey want to receive payments from theCRT 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 reinveststhe 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.

BARGAIN SALES WHAT ARE THE DETAILS?A bargain sale is a sale of property to Providence at lessthan 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.

- 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 capital-gains tax that is due on the sale portion of the transaction.

GIFTS OF REALTY WITH A RESERVED LIFE ESTATEWHAT ARE THE DETAILS?e donor makes a permanent transfer of a home,condo, vacation home or farm to Providence. Provi-dence and the donor agree that the donor and thedonor’s spouse will continue to use and enjoy theproperty for life. e donor will continue paying formaintenance, 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.

• is deduction will offset the donor’s future paymentsfor 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.

20 Providence Foundation Sourthern California 21

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

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

GIFTS OF

NAMING PROVIDENCE AS THE BENEFICIARY OF A LIFE INSURANCEPOLICY

WHAT ARE THE DETAILS?It is simple for a donor to name Providence as the beneficiary of a life insurance policy. All the donorneeds to do is to fill out a beneficiary designation formsupplied 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.

Many people have life insurance policies they nolonger need. For example, a policy was taken outmany years ago to protect a young family and now thechildren are grown. Or a policy was taken out to payoff estate taxes and under current law, the estate is nottaxable. at excess insurance might provide a fargreater gi to Providence than the individual policyowner/donor could afford to give outright.

TRANSFERRING OWNERSHIP OF A LIFEINSURANCE POLICY TO PROVIDENCEWHAT ARE THE DETAILS?Sometimes a donor is burdened with paying premiumson a life insurance policy that is not needed. Instead,ownership of the policy can be permanently given toProvidence. e gi may be made easily by filling outinsurance company forms. (e donor should consultwith advisors about the tax and financial consequencesof 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 gis.

• 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.

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.

GIFTS OF

GIFTS THAT PAY INCOME

WHAT ARE THE DETAILS?A charitable remainder trust (CRT) or a charitable giannuity (CGA), funded with real estate, can be used tocreate a stream o f payments and reduce taxes.

WHAT ARE THE BENEFITS?A donor who wants to give real estate and receive anannuity, can create a CGA. is may be an alternative to a reverse mortgage for a donor, whogives his/her house but continues to live in it.

Before listing their appreciated real property forsale, many astute owners transfer some or all of thereal property to a CRT that will benefit Providencesomeday. ey want to receive payments from theCRT 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 reinveststhe 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.

BARGAIN SALES WHAT ARE THE DETAILS?A bargain sale is a sale of property to Providence at lessthan 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.

- 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 capital-gains tax that is due on the sale portion of the transaction.

GIFTS OF REALTY WITH A RESERVED LIFE ESTATEWHAT ARE THE DETAILS?e donor makes a permanent transfer of a home,condo, vacation home or farm to Providence. Provi-dence and the donor agree that the donor and thedonor’s spouse will continue to use and enjoy theproperty for life. e donor will continue paying formaintenance, 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.

• is deduction will offset the donor’s future paymentsfor 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.

20 Providence Foundation Sourthern California 21

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

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

OTHER

• For a donor who is already making major gis to Providence, a CLT may give the donor a chance to continue those gis and save taxes when transferringproperty to family members.

• A CLT can be planned so that it lowers income taxes paid by the donor.

ENDOWMENTSEndowment gis 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 aProvidence 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 abovea minimum threshold, designates the purpose for the endowment and names the endowment.

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

• e endowment may grow larger. e donor and thedonor’s family and friends can make additional gis to the endowment fund, honoring the donor’s intention.

• Endowment gis to Providence are tax-deductible.

GIFTS OF APPRECIATED STOCK ANDOTHER SECURITIES WHAT ARE THE DETAILS?Giving long-term appreciated stock or other securitiesis better for the donor than giving the equivalentamount 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

WHAT ARE THE DETAILS?e donor creates a charitable lead trust (CLT) andtransfers property to the trust. e CLT’s trustee paysincome to Providence for a selected term of years orfor someone’s life span. When Providence’s interestends, the trustee transfers the CLT property to thedonor or to individuals who were chosen by the donor.

WHAT ARE THE BENEFITS?A CLT allows a wealthy donor to avoid estate and gi taxes on transfers of propertyto family members like children andgrandchildren, with the possibility of delaying the transfer of property until they are mature enough to receive it.

CORE

RESPECTWe 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

JUSTICEWe 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

THE PROVIDENCE

As People of Providence,

we reveal God's love for all,

especially the poor and vulnerable,

through our compassionate service.

22

Pocket with card slots

www.ProvidencePowerOfGiving.org

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.

OTHER

• For a donor who is already making major gis to Providence, a CLT may give the donor a chance to continue those gis and save taxes when transferringproperty to family members.

• A CLT can be planned so that it lowers income taxes paid by the donor.

ENDOWMENTSEndowment gis 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 aProvidence 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 abovea minimum threshold, designates the purpose for the endowment and names the endowment.

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

• e endowment may grow larger. e donor and thedonor’s family and friends can make additional gis to the endowment fund, honoring the donor’s intention.

• Endowment gis to Providence are tax-deductible.

GIFTS OF APPRECIATED STOCK ANDOTHER SECURITIES WHAT ARE THE DETAILS?Giving long-term appreciated stock or other securitiesis better for the donor than giving the equivalentamount 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

WHAT ARE THE DETAILS?e donor creates a charitable lead trust (CLT) andtransfers property to the trust. e CLT’s trustee paysincome to Providence for a selected term of years orfor someone’s life span. When Providence’s interestends, the trustee transfers the CLT property to thedonor or to individuals who were chosen by the donor.

WHAT ARE THE BENEFITS?A CLT allows a wealthy donor to avoid estate and gi taxes on transfers of propertyto family members like children andgrandchildren, with the possibility of delaying the transfer of property until they are mature enough to receive it.

CORE

RESPECTWe 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

JUSTICEWe 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

THE PROVIDENCE

As People of Providence,

we reveal God's love for all,

especially the poor and vulnerable,

through our compassionate service.

22www.ProvidencePowerOfGiving.org

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.

Providence Holy Cross • Providence Saint Joseph • Providence TarzanaThe Office of the Director of Planned Giving, Valley

818.847.4678 or 818.847.4673

Providence Little Company of Mary /Torrance • San PedroThe Office of the Director of Planned Giving, South Bay

310.514.5330 or 310.303.5340

Providence TrinityCare HospiceValley - 818.847.4673

South Bay - 310.543.3440

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

www.ProvidencePowerOfGiving.org

F O R M O R E I N F O R M A T I O N

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.