Creative Gift Planning Enables Hunt Family to Make a Special Gift: Judy and Graham Hunt
When longtime friend and advocate Graham Hunt was approached about making a gift that would enable Children's Mercy to secure a challenge grant of $1 million, he was eager to help. As a financial advisor, he certainly understood the value of leveraging a gift of this magnitude. Immediately following that request, however, was a second request to maximize his gift; a total of $1 million would allow a significant naming opportunity to honor his wife, Judy for her years of dedication and service to the hospital.
"At first, I laughed," says Graham. "There isn't anything my family and I would like more than to name something at Children's Mercy in honor of Judy. So much of her volunteer life has been devoted to the hospital and the children it serves. But such a gift seemed out of the question."
When asked if he would allow the development staff to explore with him some opportunities through planned gifts, he agreed to listen to their ideas. He and his children, Nancy Megee, Kathy Woodward and David Hunt, became excited about the possibility of such a tribute to wife and mother, Judy.
Initially, the staff worked with Graham and his insurance agent to determine whether a paid-up insurance policy was an option. Coincidently, Graham was also at that time considering selling his privately held business, but doing so would create significant capital gains liabilities. This situation offered yet another opportunity to consider in crafting the gift.
As options were explored, a team approach was called for to create a multi-faceted gift. Graham's CPA, insurance agent and attorney joined in the gift planning with him and the hospital's development officers, and a win-win solution was the result of his collaboration. To make the gift, Graham transferred the closely held stock in his business to Children's Mercy, and the hospital subsequently sold the stock free from capital gains tax. With the proceeds, the hospital had cash to help match the challenge grant and sufficient cash remaining to purchase a paid-up insurance policy of which the hospital was owner and beneficiary.
Maximizing the family's gift this way resulted in Graham's making a million dollar gift and achieving two goals. He helped Children's Mercy reach its campaign goal and secure the challenge grant, and he and his children honored his wife by having the custom-designed clock tower at the hospital's entrance named for her. Not only did Graham achieve these goals, but he also benefited by avoiding capital gains taxes on his appreciated assets and received a tax deduction for his charitable contribution.
This gift truly was a win-win for all. Additionally, it well illustrates not only how a gift can be maximized by creative gift planning, but also what can be accomplished when a philanthropic family, a charity's gift officer and professional advisors come together and work toward a common goal.