Donors Use Efficient and Effective Way to Help Families

Mary and Hudson Drake

Mary and Hudson Drake

A longtime friend of San Diego's Ronald McDonald House, Mary Drake first encountered our cause when her dear friends were pregnant. The mom developed complications and stayed at the Ronald McDonald House to be as close as possible to lifesaving care for her baby.

Seeing other families at the House, Mary recognized that the struggles of having a critically ill child are practical as well as emotional. Families need a place to eat and sleep that lets them reach their child's side at a moment's notice. To help them, she founded what became the Ronald McDonald House's annual ROMP gala. Her work resulted in a widely celebrated event that has raised over $10 million for families staying with us.

"I thought the mission was extremely worthwhile. I fell in love with it." —Hudson Drake

Mary encouraged her husband, Hudson, to join her in supporting the House. Hudson came for a visit and saw family members relaxing together in the Joseph Clayes III Great Room. Some chatted as they ate hot lunches. Children cuddled with their parents in the living room. And on both sides of the dining room were 48 welcoming guest suites.

"I thought the mission was extremely worthwhile. I fell in love with it," recalls Hudson. "I saw the children playing and laughing outside, and I was quite moved. I decided, along with Mary, to make the San Diego Ronald McDonald House a major mission of ours."

Mary and Hudson Drake

Mary and Hudson Drake escorted into 2016 ROMP gala.

Hudson had personal reasons for supporting the House, too. His youngest son, Paul, needed heart surgery at just eight years old, and he is grateful for the surgery's success. Hudson also lost his first wife to breast cancer. He knows firsthand that families need plenty of support when a loved one is in a medical crisis. They need security, comfort and a place to retreat each day.

Hudson served for six years on the Ronald McDonald House's Board of Trustees, including as Vice Chair. And in 2016, he and Mary became Charter Members of our Many Hearts Legacy Society.

"Since the IRA charitable rollover was signed into law in 2015, it's been more efficient to make donations directly from our IRAs." —Hudson Drake

The couple continues to look out for our families through their volunteer work and annual financial gifts. Last year, they made two separate distribution gifts from their IRAs. "Since the IRA charitable rollover was signed into law in 2015, it's been more efficient to make donations directly from our IRAs," says Hudson. "Our broker sends the distribution checks straight to the Ronald McDonald House." And giving directly from their IRA to a qualified charity makes any gifts totaling up to $100,000 tax-free.

What You Can Do

If you'd like to make an IRA Qualified Distribution:

  1. Contact Charles Day at 858-598-2420 or cday@rmhcsd.org, or
  2. Download a sample IRA distribution letter, or
  3. View our IRA Frequently Asked Questions.
Grantor Charitable Lead Annuity Trust

Provides income payments to a qualified charitable organization for a period of years, the lives of one or more individuals or a combination of the two; after which, trust assets are paid to the donor of the trust.

A power of attorney form that transfers ownership of stock.

Securities such as stock that are in certificate (paper) form.

Investments that have increased in value since the time of their purchase.

Testamentary means bequeathed through one's will.

A charitable bequest is one or two sentences in your will or living trust that leave to Ronald McDonald House Charities of San Diego a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

I give [insert amount, percentage of the estate, or 'the rest and remainder of my estate'] to Ronald McDonald House Charities of San Diego, Inc.

Federal Tax ID #95-3251490

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor-advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the House or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust (CRT) provides income to you, as the donor of the CRT, or to other named individuals, and does so each year for life or for a period not exceeding 20 years. The remainder of the assets go to your chosen charity.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the House as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the House as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the House where you agree to make a gift to the House and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.