Gifts that Reduce Your Taxes

Securities, bonds and mutual funds that have appreciated in value are among the best ways to drive breakthroughs at Fred Hutch. Assuming you have owned the securities for over a year, you will receive a tax deduction for the full market value of the securities and avoid paying capital gains tax on any increase in the value of the securities. You receive a tax deduction for income that was never taxed! Ready to make a gift of securities? You can learn more here.

We gratefully accept grants from donor advised funds and can work with your fund’s administrator to ensure your grant supports the research most meaningful to you.

Here’s how it works:

• If you are aged 70½ or older, you can direct your IRA administrator to transfer the amount of your gift directly from your IRA to Fred Hutch.
• Beginning at age 73, the transferred funds count toward your annual Required Minimum Distribution (RMD).
• You pay no income tax on the distribution, as long as the funds transfer directly from your IRA to Fred Hutch.

Some rules to keep in mind:

• You must be age 70½ or older.
• Transfers are limited to a total of $105,000 per year for an individual and $210,000 per year for a married couple.
• The transfer must be made directly from your IRA account to Fred Hutch.

If you are interested in this popular way to support Fred Hutch, download a sample letter to your IRA administrator here.

Learn about IRA giving

You may have a life insurance policy that has served its purpose and you no longer need it. If so, you can use it to fund a legacy gift for Fred Hutch to further our crucial work to cure cancer faster. You can transfer ownership of the policy to Fred Hutch or name us as a beneficiary.

Transfer ownership:

Giving a life insurance policy to Fred Hutch during your lifetime can help our mission in one of two ways. We can cash it in (assuming there is a build-up in value) and use the proceeds immediately toward our mission. Alternatively, it might make more sense to retain the policy until maturity. In that case, we would use the death proceeds to support our science in the future. Either way, you are helping to advance the work of the internationally renowned scientists at Fred Hutch.

Because it is an irrevocable gift, you may receive an immediate tax deduction when you transfer the policy to Fred Hutch. For any continuing premium payments you make, you will receive a charitable deduction in the year of the payment.

Name us as a beneficiary:

You can name Fred Hutch as a beneficiary of all or a portion of your life insurance policy. With this gift arrangement, Fred Hutch will receive the proceeds of your policy when you pass away. You can change your beneficiary at any time. However, this flexibility means you will not receive an income tax deduction. Instead, your estate will receive a charitable deduction, which may reduce your estate taxes.

Another option, perhaps when your family is young, is for you to name Fred Hutch as the contingent beneficiary. This allows you to make sure you have provided for your loved ones should you predecease them, while also potentially providing a legacy gift to Fred Hutch.

The gift is easy to arrange — you simply complete and sign a beneficiary designation form.

When you redeem savings bonds, you will owe income tax on the appreciation. So will the person who inherits them. You can eliminate the income tax on bonds you plan to redeem by donating them to Fred Hutch. Because Fred Hutch is tax-exempt, 100 percent of your gift of savings bonds will go to supporting our shared mission in the fight against cancer.

Benefits:

• Reduce your income tax with a current gift.
• Reduce income tax and possibly estate taxes for your loved ones.
• Create your lasting legacy with Fred Hutch.

With this option, you can transfer assets to your children while reducing or eliminating gift or estate taxes, and create your legacy with Fred Hutch. You will receive a gift or estate tax deduction when you fund the trust. Annual payments are made to Fred Hutch for a period of time, after which your family will receive the remaining trust assets, as well as any increase in value, free of any estate or gift taxes.

Benefits:

• Reduce gift or estate taxes.
• Transfer assets to your family at reduced or no cost.
• Make annual gifts to Fred Hutch.