Where will the money go? Leaving a legacy with your estate a ...

Where will the money go? Leaving a legacy with your estate a ...

Gift Planning for the Future of the Parish Disclaimer This presentation is designed to provide an overview of certain charitable gift instruments. It is not intended to provide legal, tax, investment, or other professional advice. Please obtain the services of a competent attorney or other professional advisor when developing your own charitable giving plans.

Learning Objectives What is a gift that is planned? The most common types of planned gifts Gift planning that can actually produce Income for the giver

Gift planning that can be used for reducing the givers taxes What is Gift Planning? In reality, every gift is in some way planned The annual pledge Other gifts might also be planned: Special-purpose gifts: a building campaign

Gifts made to the parish over time, or through ones estate Our focus today: to learn more about planning for these other types of gifts Understanding Planned Gifts Planned Gifts: philanthropic gifts made to the parish

that the parish receives at some future date Often called estate gifts or bequests not limited to happening only at death Capital campaign commitments Special purpose pledges (scholarship, etc.) Planting for the Future from Gods Blessings Today Compound interest in the eighth natural wonder of the world Albert Einstein Planting for the Future from Gods Blessings Today

Understanding Planned Gifts Over 50% die without a Will or Trust Of those who plan, only 6% leave money to church/charity

Planned gifts (bequests) = $32B annually ~9% of all charitable giving in 2015 Why Should Anyone Leave a Gift? To make a significant impact on the parish and its mission

To possibly lower taxes at death For potential tax savings during ones lifetime To increase income in lifetime To make an impact on family:

When my Will is read, what will my children and grandchildren learn about my values? Gift Purposes Annual pledges are generally considered unrestricted parish leadership uses those funds as most needed throughout the year. Some make restricted gifts to annual fund

important to designate any such gifts for items included in the parishs annual operating budget. (e.g.: My gift is to be used to support the Sunday School.) Restricted Planned Gifts Planned gifts can be restricted The most common restriction: parishs Endowment Fund

An Endowment Fund = a permanent savings account that cannot be spent Only the Funds annual earnings can be used Restricted Planned Gifts Endowment contributions can only be made by the givera person/estate

parish leadership (i.e., the Vestry) cannot put money into endowment Unrestricted gifts may go into a reserve fund and be treated as endowment These Funds are not true endowment Sometimes called quasi-endowment or the Bequest Fund, etc. Restricted Planned Gifts Bequest Fund (or quasi-endowment) can

be used at any point in the future by parish leadership, unlike true endowment Ideally, parish has three separately accounted funds: Annual Operating Fund (from the annual campaign) Operating Reserves/Bequest Fund/quasiendowment (from unrestricted bequests) Permanent Endowment (from restricted gifts and restricted bequests) Planned Giving for You and Your Parish How does this work in real life?

Gifts We All Can Give Estimate of Giving According to a plan $ per week/month % of income Electronically/ACH Out of gratitude, generously, and joyfully

Gifts We All Can Give Did you know that you can make a gift to our church that costs you nothing during your lifetime? Simple bequest in will or in a trust Most common (85%

of all planned gifts) Specific $ amount Certain % of Your Estate Add a codicil to existing Will to The Endowment Fund of [Church name and address]. Gifts We All Can Give Did you know that you can make a gift to our church that costs

you nothing during your lifetime? Change of beneficiary Traditional IRAs Keough, 401(k) plan 403(b) plan Life Insurance

Accounts beneficiary (POD) Brokerage Money Market, etc. Gifts We All Can Give Did you know that gifts of stock can be more beneficial than giving cash? Appreciated Stock

gifts Deduct full value Avoids Capital Gains tax Provides immediate gift to your church Helpful for annual tax planning RELATED: Annual IRA

Minimum distribution Income Gifts basics Did you know that you can make a gift to our church and receive an income that you cannot outlive? Basic Characteristics: An irrevocable gift

Donor receives charitable deduction in the year of gift Receives income for life Income Gift Types Did you know that you can make a gift to our church and receive an income that you cannot outlive?

Charitable Gift Annuity The older the Donor, the higher the return 2 to 3 times current Interest income of CDs Min. age: 55 $5,000 minimum when using ECF Charitable Gift Annuity: One Life

Charitable Gift Annuity: Two Lives Income Gift Types Did you know that you can make a gift to our church and receive an income that you cannot outlive? Charitable Remainder Trusts

Minimum: $100,000 Payments set by trustee with donor input Fixed Annuity (CRAT) Variable based on performance (CRUT) Review: No Help Needed to.. Add a Codicil to an existing Will (the attorney who drafted the Will can do it easily)

Change a retirement account beneficiary designation Traditional qualified charitable roll-over minimum distribution directly rolled over to charity (no income tax, no charitable deduction) Change a life insurance policy beneficiary designation

Review: Some Help Needed to.. Set up a Charitable Gift Annuity or contribute to a Pooled Income Fund Make a gift of a universal or whole life insurance policy

Make a gift of real estate or other tangible property See an Attorney to. Establish a new Will Set up any type of Trust Establish more complex gifts, such as a Life

Estate (gift of your primary residence or family farm) Disclaimer This presentation is designed to provide an overview of certain charitable gift instruments. It is not intended to provide legal, tax, investment, or other professional advice. Please obtain the services of a competent attorney or other professional advisor when developing your own charitable giving plans.

Th The Future is Purchased by the Present Samuel Johnson Thank You!

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