Non-cash Assets: How Donating These Assets Helps You and Baystate Health Foundation

Making a donation of non-cash assets can benefit donors while also supporting charitable and nonprofit causes they care about. Most donors know about giving through cash, a credit card or a check. They do not always know about how to give with non-cash assets, which may offer them tax savings and other financial benefits.

What is considered a non-cash asset?

In its simplest terms, a non-cash asset is an item that cannot simply be converted to cash but does have value that increases over time. Examples of non-cash assets include stocks, real estate, mutual funds, retirement assets, artwork, and antiques.

What are the benefits of giving a non-cash asset?

Donating non-cash assets to a charity offers numerous benefits, such as:

• Avoiding capital gains tax.
• Creating an income stream for now or later with a life income gift.
• Enjoying a charitable tax deduction.
• Saving your heirs taxes.
• Establishing a legacy gift without giving up any assets now.
• Meeting your required minimum distribution from an IRA by making a gift directly from it to Baystate Health Foundation.
• Saving on Medicare or Social Security taxes by making a gift directly from your IRA.

By leveraging non-cash assets, you can make a meaningful contribution while ensuring your support continues for years to come.

Giving through IRA: Qualified Charitable Distribution

For donors who are 70.5 or older, a qualified charitable distribution (QCD) is a great way to make a tax-free gift and support Baystate Health. With a QCD, donors can transfer up to $110,000 in 2025 ($105,000 in 2024) directly from their IRA (or IRAs) to a qualified charity, such as Baystate Health Foundation, each year.

For those who are 73 or older, a QCD can save you taxes and satisfy your Required Minimum Distribution (RMD)—the minimum amount you must withdraw from your retirement accounts, saving you taxes.

Give More with a Donation of Appreciated Stock

Donors who make gifts of securities, including appreciated stocks, bonds or mutual funds that have been held for more than a year, are provided with special tax savings. Donors receive a charitable deduction for the current fair-market value of the asset while avoiding capital gains taxes.

Donate Through a Donor Advised Fund

Many donors appreciate the immediate tax benefits of a Donor Advised Fund (DAF) and take satisfaction in witnessing the impact of their contributions. There are two straightforward ways to make a gift through your DAF:

• Make an outright gift by recommending a grant to the Baystate Health Foundation to support its greatest needs or a specific priority area.
• Create a succession plan to ensure that the Baystate Health Foundation receives all or a portion of the fund's value upon its termination, allowing your support to continue even after your lifetime.

These options enable you to enhance your philanthropic impact while enjoying the financial advantages of a DAF. Name Baystate Health Foundation as a Percentage Beneficiary of Retirement Plan Assets

Retirement assets can be highly taxed when given to non-spouse loved ones but are tax-free when given to a nonprofit like Baystate Health Foundation. Make Baystate Health Foundation the beneficiary of a retirement plan and save other, less tax-heavy assets for your heirs. This popular, flexible gift requires you to give up no assets now and can create a lasting future legacy.

Consider a Gift of Real Estate

An outright gift of a vacation home or other property could free you from maintenance costs, property taxes, insurance, and other on-going expenses while providing you with an income tax deduction. You will avoid capital gains tax on any appreciation in value. Another option is to gift the property to a charitable trust and sell it within the trust to generate an income stream for you or your heirs. At the end of the trust’s term, the remainder value could support our lifesaving mission.

Turn Your Life Insurance Policy into a Gift

Gift your policy to Baystate Health Foundation.

As the policy owner, Baystate Health Foundation will either cash in your policy and use the proceeds or maintain the policy until it ends and then receive its face amount. Your benefits will include:

• An immediate income tax charitable deduction for the value of your policy.
• No change in your cash flow.

Designate Baystate Health Foundation as a beneficiary of your policy.

When your policy ends, Baystate Health Foundation will receive some or all of your policy's face amount, as you have designated. Your benefits will include:

• The amount of your policy you gift will not be included in your estate, which may save estate tax if your estate exceeds the applicable exemption amount.
• No change in your cash flow.

Include a Gift in your Will or Trust

Many donors enjoy this popular, flexible way to support Baystate Health without gifting any assets now. Including a gift to Baystate Health Foundation in your will or trust allows you the opportunity to continue your values, honor a loved one, and make a positive difference.

How do I document non-cash donations?

When you donate a non-cash asset to Baystate Health Foundation, you will receive a receipt outlining the value of the donation for your tax records. For assistance on the tax and other financial implications of your donation, we recommend you connect with your tax or financial advisor.