“Tell them to do good, to be rich in good
works, to be generous, ready to share, thus accumulating as treasure a good
foundation for the future, so as to win the life that is true life.” 1 Timothy 6:18-19
All of us want
to feel that we have made a lasting contribution to a better world; that our
lives have touched others in meaningful ways; that our legacy will live on long
after we are gone. This joy is often
realized through our children, our friends and our families—but there is more.
We also are enriched
by the gifts we give to others less fortunate.
By generously sharing our resources to help the Church’s mission, our
legacy can reach beyond the boundaries of children and family and create a
treasure for true life. Your gift to The
Catholic Foundation can form that ‘lasting contribution to a better world’.
Leaving a
Trace through Planned Giving
Gifts come in
many forms. There are gifts of time
through volunteer work, gifts of service and financial gifts. Planned gifts are a way of making a financial
gift during your lifetime or through your estate. They are called “planned” because they are
typically made after thoughtfully reviewing assets in your estate and planning
for their use.
Planned gifts may include:
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Many people
choose to make planned gifts because they provide an immediate income tax
deduction. Depending on the gift you
choose, a planned gift might also help avoid capital gains taxes, reduce estate
taxes or increase your income.
Cash is the
simplest way to make a charitable gift.
A cash gift is deductible up to 50 percent of your adjusted gross
income, so the cost to you is much less than the actual amount of the
gift. This means that, if you are in the
31 percent tax bracket and you were to give $1,000 this year, your tax benefit
would make the actual cost to you only $690.
But the Church still receives the full $1,000 donation. Any gift amount over the 50% limit may be
carried forward for five years.
A GIFT OF LIFE INSURANCE
When life
insurance is no longer needed for financial security, it can be used to make a
significant charitable gift. All you
have to do is name the Church as owner and beneficiary of your life insurance
policy and continue paying the premiums.
You’ll receive an immediate tax deduction for the cash value of your
policy and an additional tax deduction for the premiums you pay in future
years.
A GIFT OF APPRECIATED SECURITIES OR REAL
ESTATE
If you have real
estate or marketable securities that have grown substantially in value, you can
make a gift to the Church and enjoy a considerable tax benefit. You may deduct the full, fair-market value of
the property, up to 30% of your adjusted gross income (if you have owned it
more than one year). And, you’ll pay no
tax on the capital gain portion of the property! Any amount over the 30% limit may be carried
forward for five years.
A GIFT THROUGH A BEQUEST
A bequest made
through your will is one of the easiest and most effective ways to make a
planned gift while providing for the security and well-being of your loved
ones. There are several different types
of bequests:
- A specific bequest will state that a
dollar amount or percentage of the assets in your estate will be given to
the Church, or that a particular piece of property will be transferred to
the Church.
- A residuary bequest will state that
all or a percentage of your estate will pass to the Church after specific
bequests and other obligations have been met.
- A contingent bequest will state that
the Church will receive a portion of your estate if none of your heirs are
alive at the time of your death.
The value of
your bequest to the Church is deductible from your taxable estate, thereby
reducing your estate taxes. There is no
limit on the amount of your charitable deduction for estate tax purposes.
Sample
Language for Bequests to The Catholic Foundation
The following language may be useful to you and your
attorney as you review ways in which you can best include The Catholic
Foundation or your parish, the Archdiocese or other charitable institutions in
your will or revocable trust.
You should always seek the
advice of a professional when planning the disposition of your estate.
For a specific amount. "I bequeath
to the Archdiocese of Santa Fe Catholic Foundation, a
For a specific piece of property.
"I bequeath to the Archdiocese of Santa Fe Catholic Foundation, a
For a
percentage of your estate.
"I bequeath to the Archdiocese of Santa Fe Catholic Foundation, a
For your residuary estate. "I
devise and bequeath the residue of the property owned by me at my death, real
and personal and wherever situate, to the Archdiocese of Santa Fe Catholic
Foundation, a
For a specific purpose. "I bequeath
to the Archdiocese of Santa Fe Catholic Foundation, a
To establish an endowment. "I
bequeath to the Archdiocese of Santa Fe Catholic Foundation, a
A GIFT THROUGH AN ANNUITY
A gift annuity
is a simple way to make a charitable gift—with the advantage of increasing your
income while reducing your taxes.
In exchange for
your gift of cash or securities, you receive annuity payments for the rest of
your life, or a fixed term of years. You
also get a tax deduction for the portion of the transfer that is expected to be
paid to the Church at the end of your life or the fixed term. In addition, part of the annuity income you
receive each year is tax-free.
A GIFT THROUGH A CHARITABLE
REMAINDER TRUST
A charitable
remainder trust is an arrangement in which you place money, securities or other
property with a trustee, and income is paid to you (or someone you choose) for
life or a term certain. At the end of
that period, the property remaining in the charitable remainder trust is
transferred to the Church.
Charitable
remainder trusts offer a wide range of benefits for you, your family and our
Church. In addition to an increase in
income, you receive a tax deduction for the present value of what is expected
to remain in the trust at the end of its term.
Deductions are
limited to 50% of your adjusted gross income on gifts of cash, and 30% on gifts
of appreciated property. Any amounts in
excess of those limitations may be carried forward for five years. If you donate appreciated property, you also
avoid any capital gains tax on the sale of that property.
Most
importantly, a charitable remainder trust allows you to make a significant gift
to the Church, without sacrificing income to you family.
YOUR PARTNERS: CREATING A TREASURE FOR THE FUTURE
The Catholic Foundation and the parishes, schools and
Catholic agencies of the archdiocese are your partners in planned giving. Together, we can help you plan a gift to support
the mission and ministries of our Church in a significant way.
At The Catholic Foundation, we make the most of planned
gifts by investing them in endowment funds that have a perpetual
existence. This means that a portion of
the earnings generated by your gift—not the principal—will be used. Any additional earnings will be reinvested so
that your gift may grow in value over time.
Through the Foundation’s professional investment management, your
planned gift can become a wellspring of support for the parish, school,
Catholic agency or ministry of your choice.
We will work
with you to design a giving plan that will best serve both your charitable
interests, and your personal and financial circumstances. Together, we can “accumulate as treasure a good
foundation for the future.” Together, we
can carry your legacy forward for future generations.
Call or write
The Catholic Foundation
2201 San Pedro NE
Bldg. 2
505-872-2901
info@thecatholicfoundation.org