Determine What Type of Gift You Wish to Make
Donors can give to the Endowment Fund in a variety of ways. Choosing the right method or plan depends on the assets, needs, intentions, and age of each donor. The available methods for giving include current giving options and planned giving options.
Current Giving Options
Cash Gifts (Outright Contributions, Memorial Gifts)
You may make a contribution of any size to the Endowment Fund by cash. Your contribution may simply be an outright contribution meeting your own personal charitable wishes or given in memory of a friend or family member.
Publicly Traded Securities
Gifts of publicly traded securities, including stocks & ADR’s, mutual funds, municipal and corporate bonds, treasury bills and notes, warrants, stock options and stock appreciation rights, are another way to give to the Endowment Fund.
Donors may consider gifts of real estate, which may include personal residences, rental properties, office buildings, land, leasehold interests, and other structures. Because of the complexity of liquidating real estate, any such gift must be approved by the Financial Stewardship Committee before it can be accepted as a gift to the Endowment Fund.
Personal property contributions may include art collections, antiques, jewelry, automobiles, books, etc. Because there is a wide variety of miscellaneous personal property which can be gifted, each asset will be reviewed as to its appropriateness for acceptance by the Financial Stewardship Committee.
Life Insurance Policy
You may donate an existing life insurance policy naming the Endowment Fund as owner and beneficiary of the policy. The gift is accomplished with an absolute assignment form obtained from the insurance company.
Planned Giving Options
You may choose to designate the Endowment Fund as a beneficiary in your will or trust of certain assets in your estate or of a percentage of your estate. Some donors choose to “tithe” their estate by leaving at least 10% of the value of their estate to the Endowment Fund.
A gift annuity is an agreement between a donor who makes a gift of cash or property and the Endowment Fund, which agrees to make fixed payments to the donor for life.
Charitable Remainder Trust
These types of trusts are arrangements made among the donor, a trustee, and the Endowment Fund. The donor transfers cash, property, or securities to the trust but retains the right to the income from the trust or to specify who can receive the income. After the death of the last income beneficiary, the Endowment Fund receives the remaining assets in the trust.
Charitable Lead Trust
A lead trust is the opposite or reverse of the charitable remainder trust. A charitable lead trust pays out income (or the lead interest) to the Endowment Fund for one or more lives or for a specified term of years. At the end of the term, the trust assets revert to the donor, the donor’s estate, or specific beneficiaries named in the trust document.
Life Estate Agreement
A life estate agreement is a charitable instrument by which a personal residence, vacation home, or farm is transferred by deed to the Endowment Fund during a donor’s lifetime and the donor retains usage of the property for life. A deed with a life estate provision is executed. Upon the donor’s death, the Endowment Fund receives the property. The property passes directly to the Endowment Fund, avoiding delays, entanglements, and unnecessary estate settlement expenses. At the donor’s death, the property is entirely owned by the Endowment Fund. A life estate agreement is used by persons who wish to receive an immediate income tax deduction and provide for the property to pass to the Endowment Fund at death.
These are just some of the options available for giving to the Endowment Fund, each of which has its own tax benefits and consequences. Prospective donors to the Endowment Fund are advised to consult with their attorneys and professional tax advisors in all matters relating to gifts to the Endowment Fund. Neither the Church nor any of its representatives may provide legal, accounting, tax, or other similar advice in connection with any gifts to the Endowment Fund nor make any representation as to the tax consequences associated with such gifts.