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planned giving
What is
Planned Giving?
What are
Planned Gifts?
Why
should I make a planned gift?
Methods
of Planned Giving
YEAR-END GIVING
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What is Planned Giving?
Charitable gift planning uses a variety of
financial tools and techniques for giving, requires the assistance of one or
more qualified specialists, utilizes tax incentives that encourage
charitable giving, when appropriate, and covers the full spectrum of
generosity by individuals and organizations. The techniques of charitable
gift planning include both revocable and irrevocable arrangements, gifts
available for use at the time they are given and gifts that may not be
available until a future date and split-interest gifts intended to balance
financial, personal and charitable objectives. These techniques are called
planned gifts. The tools of charitable gift planning include all types of
real and personal property and tangible and intangible assets.
What are Planned Gifts?
Planned gifts are a variety of charitable giving
methods that allow you to express your personal values by integrating your
charitable, family and financial goals. Making a planned charitable gift
often requires the assistance of a knowledgeable advisor such as an
attorney, financial planner, or CPA to help structure the gift.
Why should I make a planned gift?
Many people want to make charitable gifts but need
to do so in a way that helps meet their other personal, family, or financial
needs. Planned gifts give you options for making your charitable gifts in
ways that may allow you to:
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Make a larger charitable gift than you thought
possible
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Increase your current income
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Plan for the financial needs of a spouse or loved
one
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Provide inheritances for your heirs at a reduced
tax cost
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Reduce your income tax and/or avoid capital gains
tax
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Diversify your investment portfolio
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Receive income from your personal residence or
farm
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Plan for the transfer of your business
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Leave a charitable legacy for future generations
Methods of Planned Giving
Bequests/Gifts by Will
A will is the easiest and most effective means to ensure that you fully
provide for your family and that your assets are distributed as you wish.
Gifts by will, or bequests, can be an important source of revenue for Holy
Family Parish, enabling us to continue doing God’s work.
Advantages
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It involves no cost to the donor other than the
cost of preparing your will.
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It allows you to make a long-term commitment
without affecting your current standard of living.
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It provides the comfort of knowing your assets
are still available to you today if needed.
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It allows you to make a tax-effective gift to
your beloved Holy Family Parish.
How does it work?
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Leave a specific dollar amount or a specific
piece of personal property
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Leave a share or percentage of your estate
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Provide for the needs of your loved ones
(either through an outright gift or subject to a trust) and give the
rest (or residue) of your estate to Holy Family.
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Charitable Gift Annuities
A charitable gift annuity is a 'gift that gives
something back'. It's a way of making a gift to help Holy Family Parish and,
in return, get back a guaranteed income for life that can be largely or
entirely tax-free. Charitable gift annuities can be especially appealing to
people aged 70 or more and who are more concerned about financial security
than income growth.
Advantages
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You may be eligible for a charitable tax
receipt.
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It enables you to turn your taxable interest
income into tax-free income.
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You can provide a significant contribution to
Holy Family and at the same time receive a regular income during your
lifetime.
-
It gives the satisfaction of knowing that you
are making a difference in the lives of others by helping Holy Family
carry out its Gospel mission.
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It offers freedom from investment worries.
How does it work?
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You donate a sum of money to Holy Family
Parish. Holy Family receives a portion of the sum immediately (usually
between 25% and 35%). The balance is used to purchase an annuity (single
or joint) from one of the highest rated insurance companies. From this
annuity, you (and/or another named individual) receive regular, equal
payments for life - guaranteed. A gift annuity is a simple contract
between you and Holy Family in which you exchange cash or securities for
a fixed income for life - for any person you choose.
Charitable Remainder Trusts
A trust is a legal agreement that specifies how
assets placed under the trust will be managed. A charitable remainder trust
is an effective way to provide you with an income for life and know that
after your lifetime, the property remaining in the trust will be used by the
Holy Family as you directed. This is a deferred gift, which means that the
proceeds from a gift commitment made now will be realized by Holy Family
Parish sometime in the future. Entering into a charitable remainder trust
agreement with Holy Family simply means that you leave a capital donation to
the parish while you are still alive. You receive the income from that
capital and benefit immediately from a tax receipt. Holy Family can count on
receiving the original sum when the trust ends. Establishing a charitable
remainder trust requires the professional services of a lawyer, possibly an
accountant and a trust company, since a trustee is required to manage the
trust.
Advantages
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It allows you to make a guaranteed, future,
large gift, here and now.
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Know that you are making a major difference in
supporting Holy Family.
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You will receive an income for life.
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It offers freedom from investment decisions.
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It ensures that your wishes will be carried out
exactly as you have specified.
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It ensures your gift is not subject to probate,
estate taxes or possible challenges to your will.
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It provides immediate tax benefits.
How does it work?
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You establish a trust and make an irrevocable
transfer of ownership of money or other assets (securities, real estate,
etc.) to the trust. Then you (or someone you designate as 'income
beneficiary') receive the income the trust generates during your
lifetime or for a specified time period. The donated capital stays in
the trust and cannot be touched. At the time the trust is created, you
receive a tax receipt for the present value of the capital sum Holy
Family Parish will receive when the trust is terminated.
Endowment Gifts
An endowment gift is an ideal way to leave a
lasting legacy to Holy Family Parish to support its holy work and at the
same time commemorate or memorialize yourself, a spouse, parent, family or
friend. An endowment is a contribution where the original capital donation
is preserved in perpetuity. Only the income generated from the endowment
fund is used for the purposes outlined in an endowment agreement. There is a
minimum gift amount required to establish an endowment fund. Endowment gifts
may be funded using cash, securities, paid-up insurance policies, or other
types of assets.
Advantages
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Leaves a lasting legacy as the original
donation remains intact while the income generated from this capital
provides an ongoing source of support for Holy Family.
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May be designated to fund a specific element of
parish life.
How does it work?
Gifts of Life Insurance
A gift of life insurance allows you to make a
larger donation to Holy Family Parish than you would have thought you could
afford, at relatively little cost. A gift of life insurance is a deferred
gift, which means that the proceeds from a gift commitment made now will be
realized by the parish sometime in the future. A gift of life insurance also
allows flexibility in structuring your gift to your tax relief goals.
Advantages
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It does not reduce the value of your estate for
your heirs.
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Life insurance proceeds are paid directly to
Holy Family and are not subject to probate fees.
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You have the ability to determine how you want
your resulting tax credits structured. Life insurance can provide an
annual tax credit or a tax credit in the year of death. How you
structure your gift will depend on where you may have the greatest need
for tax relief.
How does it work?
Some options…
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You can purchase a new policy, naming Holy
Family as the irrevocable owner and beneficiary. You then pay the
premiums and receive an income tax receipt yearly for the full amount of
all premiums paid.
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You can donate an existing policy that you no
longer need, by designating the parish as the irrevocable owner and
beneficiary. Holy Family will give you a tax receipt for the net cash
surrender value (less any outstanding policy loans) and any subsequent
premiums paid.
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You can make the Holy Family the beneficiary of
a new or existing policy. As amended in the 2000 Federal Budget, a
charitable donations tax credit will be available when a donor
designates that the death benefit proceeds of his/her policy be paid
directly to a charity.
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You may have a life insurance policy from your
employer or former employer that you want to donate to the Holy Family.
Since you will not be able to change the ownership, you would make the
parish the beneficiary of the policy. As above, a donations tax credit
will be available when the death benefit proceeds from the policy are
paid directly to Holy Family.
Gifts of Publicly Traded Securities
If you own publicly traded securities or mutual
funds that have increased in value, you may want to consider donating the
securities directly to Holy Family Parish. Such a gift can minimize the
capital gains taxes you have to pay on those securities.
Advantages
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You become entitled to a charitable income tax
deduction for the fair market value of the gifted securities at the end
of the day on the date the securities are received in our brokerage
account.
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A gift of securities to the parish can be made
for much less than the net cost of an equal gift of cash. By donating
the securities you reduce the capital gains tax that would ordinarily
become due if you had sold the appreciated securities on the open market
and donated the proceeds from the sale to charity.
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Your charitable deduction can be claimed
against up to 75% of your net income and any unused deductions can be
carried forward over the next five years.
How does it work?
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When making a gift of securities, decide which
securities or mutual fund holdings you wish to donate. Then instruct
your broker to transfer the shares electronically or endorse the share
certificates and forward them to Holy Family Parish. You'll receive a
tax receipt for the closing price of the securities on the date they are
received in the Holy Family brokerage account.
YEAR-END GIVING
Giving at Christmas and at Year's End is not only a
Catholic tradition, but a special way to commemorate the Greatest Gift -
God's gift of His only Son, Jesus. This time of year gives us more than a
financial opportunity, but a spiritual opportunity to be good stewards of
the many gifts bestowed on us this year.
The opportunity is spiritual in that it represents
a return to God of His blessings on us to assist our parish to achieve its
objective to serve God's people in our faith community and beyond. This
spiritual giving is truly a celebration of the joy of Christmas by sharing
with our community the true spirit of the season.
The financial opportunity is significant as well.
More money is contributed to charities in the month of December than any
other month of the year, as many individuals will make charitable
contributions late in the calendar year to take advantage of this year's tax
benefits. In order to do so, checks must be dated and envelopes postmarked
on or before December 31.
If you are in the position to make end-of-the-year
contributions, please consider Holy Family Parish as a beneficiary of your
support. Many different forms of year-end contributions are available, all
of which carry tax benefits.
For more information, please contact Fr. Kiernan
in the Parish Office, 723-2494.
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