Ways of Giving
“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:
- Life Insurance
- Appreciated Securities
- Real Estate
- Gift Annuities
- Charitable Remainder Trusts
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.
A GIFT OF CASH
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.
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.
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 Catholic Foundation of the Archdiocese of Santa Fe, a New Mexico non-profit corporation, the sum of _______ dollars ($_____) for its general purposes."
- For a specific piece of property:
- "I bequeath to The Catholic Foundation of the Archdiocese of Santa Fe, a New Mexico non-profit corporation, my _________ (art collection, etc.)." (Note: Bequests of real property require special handling.)
- For a percentage of your estate:
- "I bequeath to The Catholic Foundation of the Archdiocese of Santa Fe, a New Mexico non-profit corporation, ___% of my adjusted gross estate as finally determined for federal estate tax purposes."
- 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 Catholic Foundation of the Archdiocese of Santa Fe, a New Mexico non-profit corporation."
- For a specific purpose:
- "I bequeath to The Catholic Foundation of the Archdiocese of Santa Fe, a New Mexico non-profit corporation, the sum of _______ dollars ($________) to be used for (parish, school, Catholic organization)_________________." (Please contact The Catholic Foundation to discuss the program or other designation that best matches your area of interest. We will supply precise language to convey your intention.)
- To establish an endowment:
- "I bequeath to The Catholic Foundation of the Archdiocese of Santa Fe, a New Mexico non-profit corporation, the sum of _______ dollars ($________) to be used to establish the (family, parish, school, Catholic organization) _____________ Endowment Fund, the earnings from which shall be used for _____________." (A minimum gift of $5,000 is required to establish a named endowment fund. Lesser amounts may be added to existing endowment funds.)
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.