Planned Giving

What is the ministry of Planned Giving? Planned Giving is one expression of the wise use of our personal resources God has entrusted to us. We are stewards and caretakers of God’s bounty.

For a brief time, we are given time, energy, and resources. What we do with these gifts ultimately defines the character of our life and the depth of our spiritual understanding. To further advance this ministry, the Foundation has the resources to provide the services, in specific planned giving instruments outlined below.

What is Planned Giving?

Planned Giving encompasses a variety of ways that gifts can be made to the church from accumulated resources. It usually involves financial or estate planning; however, it is not reserved for the wealthy. Planned Giving is a means by which anyone concerned with the wise use of his or her personal resources makes a considered choice about their ultimate disposition. In general planned gifts are made through:

A Bequest in a Will
A Life Income Gift . . . such as a pooled income fund, a charitable gift annuity, or a charitable remainder trust.
Life Insurance
A Life Estate . . . such as a gift of a home, farm or ranch
Appreciated Property . . . such as real estate or securities

Planned Giving establishes a way for a donor to provide for family members while remembering the church, as well. It often enables the donor to provide more for his or her heirs and to make a larger gift than thought possible. It often reduces taxes.

Planned gifts can be designated for a church's general fund or for its endowment.

Planned gifts are either outright gifts (i.e., gifts of appreciated securities, real property, personal property, etc.) or deferred gifts (i.e., charitable gift annuities, charitable remainder trusts, pooled income funds, life insurance or bequests in a will).

The Ministry of Planned Giving

'In the beginning God created the heavens and the earth.' Genesis 1:1

This simple statement at the beginning of the Bible establishes once and for all the immutable relationship between ourselves and the world around us.

All that we are, all that we have, comes from God and will one day return to God.

Jesus often talked about our relationship to the "things" we possess. In Luke 12:13-21 Jesus is asked about dividing a family inheritance. He replies with a story.

'A rich man decides to build new barns to hold his bumper crop, then to "eat, drink and be merry.' However, "God said to him, 'Fool! This night your soul is required of you; and the things you have prepared, whose will they be?' So is he who lays up treasure for himself, and is not rich toward God."

We are stewards of God's bounty. Caretakers. For a brief period we are given time, energy and resources. What we do with these gifts ultimately defines the character of our life and the depth of our spiritual understanding.

Planned Giving is one expression of the wise use of the personal resources God has entrusted to us. Understanding planned giving and making it available through your church is both a ministry to the donor (giving the donor a means of thoughtfully transferring resources to the next generation), and to the church (helping the church to gather the resources necessary for its mission and ministry).

This summarizes the ways in which planned giving can be used to benefit the donor, the donor's family, and the church, for now and for many years to come.

A Bequest in a Will

Perhaps the easiest and the most common way of making a planned gift is through your will. Yet some 50 to 70 percent of all church members die without a will.

If you die without a will the state will divide your assets among your spouse and children (regardless of their age); appoint an administrator that may cost the estate large fees; and appoint guardians for your minor children who may or may not have been your choice. The state makes no charitable contributions, and it will insure that your estate pays as much tax as possible.

By making a will you appoint your own administrator; you name the guardians of your minor children; you control applicable taxes; you can create a family or charitable trust, and you can share your resources with your family, church or other institutions as you choose.

A bequest in a will can take the form of a set amount of money, a percentage of an estate, a specific asset, a trust, or the naming of the church as a contingent beneficiary.

Sample language for including the church in your will might be: 'I give, devise and bequeath (state amount, asset or percentage of the estate) to (name and address of your church) to be used (describe use) or as the church's governing board or vestry deems appropriate.'

Life Income Gifts

Life Income Gifts provide you an income in return.

They can be established in several ways, the most common of which include the Church Pooled Income Fund, the Charitable Gift Annuity, and the Charitable Remainder Trust.

Church Pooled Income Fund Gifts:

In the Church Pooled Income Fund gifts ($2,500 minimum) are "pooled" with other gifts and invested in a professionally managed investment portfolio.
The donor receives the following benefits:

A guaranteed income for life. The amount of the income depends on the rate of return on the fund's investments. The income can also flow to a surviving, or other designated, beneficiary.
An immediate federal income tax deduction. The amount of the deduction is usually based on the age of the donor and/or beneficiaries.
The elimination of capital gains taxes, if funded through appreciated securities such as stocks, bonds, mutual funds or real estate.
A possible reduction in estate taxes. At the death of the final beneficiary, the property goes to the church.

Charitable Gift Annuities:

The benefits of establishing a Charitable Gift Annuity are similar to that of the Pooled Income Fund with the following differences:

The income for life is guaranteed at a fixed rate.
Some of the income received may be tax exempt.
The minimum gift is $5,000.

Unlike the Pooled Income Fund, this gift may be "reinsured" by a life insurance company that will agree to pay you an income for life and provide the church with an immediate cash gift. This cash payout for the gift portion of the annuity will be considerably less than if the church waited until the death of the donor.

Charitable Remainder Trusts:
A Charitable Remainder Trust usually involves larger sums of money ($100,000 or more) and is individually managed. Like the Pooled Income Fund and the Charitable Gift Annuity, the Charitable Remainder Trust provides income for life, an income tax deduction, relief from capital gains taxes (if funded through appreciated property), and a possible reduction in estate taxes.

A Charitable Remainder Trust can be added to over the years, and a portion of the Trust can be set aside for growth as a hedge against inflation. The rate of return fluctuates based on the performance of the portfolio. If you are seeking a set rate of return annually, a Charitable Remainder Annuity Trust is an option to consider:

Charitable Remainder Trusts may be established with any entity that the donor chooses as trustee, which is qualified to do so, including individuals, local banks, or institutions such as the Episcopal Church Foundation.

Gifts of Life Insurance

Life insurance is a popular and convenient way to make a sizable gift to the church.

For example you can . . .

Purchase a new policy and make the church the owner and beneficiary of the policy. This enables you to "leverage" your gift, ultimately making a much larger gift than otherwise possible. Premiums become tax deductible.
Make the church the owner and beneficiary of an existing policy. The current value of the policy is tax deductible, as are future premium payments.
Make the church a contingent beneficiary of an existing policy, i.e., name the church to receive the proceeds of the policy if the designated beneficiaries predecease the insured.
Use life insurance in conjunction with another planned gift. For example, you can purchase life insurance with the income received from a life income trust, thus replacing, and in some instances, surpassing, the principal removed from the estate by the gift.

A Gift Of Life Estate

Another way of making a planned gift is by deeding your home, vacation home, farm, ranch, or condominium to the church.

Through a charitable life estate contract, you retain the right to live on the property and/or receive income from the property for a long as you or your beneficiary lives.

You receive an income tax deduction when the property is deeded to the church, avoid any capital gains taxes when making the transfer, and your inheritance and estate taxes may be reduced at the time of your death.

Gifts Of Appreciated Property

Securities, real estate, or tangible personal property can be an excellent means of making a gift to the church.

You do not pay federal capital gains taxes if the appreciated securities or real estate are transferred to the church. Normally, the value of the shares for gift and tax purposes is the fair market value, not the original purchase price.
It is important to transfer the stock or real estate to the church prior to selling it. However, if securities or real estate have decreased in value, you should sell the assets before making the gift, thus establishing a capital loss and a potential tax deduction.
Gifts of tangible personal property, such as jewelry, coins, stamp collections, furniture, works of art, antiques, automobiles, boats, etc., may be given to the church. You are responsible for setting an appraised value on the gift. Any gift over $5,000 must be independently appraised.

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