Contributing to the Endowment Fund can be as easy as earmarking a check or cash for that purpose. As with every Church offering, these gifts are 100% deductible for tax purposes. It is our goal to help educate and inform the Church body of alternative gifting arrangements and we intend to offer workshops and informal meetings to address these different techniques throughout the year. As always, we welcome specific questions and always recommend that you consult your own legal or tax advisors in connection with your planned giving.
- Remember St. Paul’s in your Will.
Everyone should have a Will. This is a living document that directs your heirs as to your final wishes and the disposition of your assets. By naming St. Paul’s as a beneficiary of your Will you can ensure that a certain amount of your lifetime accumulated wealth is left to your Church. This bequest will qualify as a charitable deduction to your estate, and more importantly, will help ensure that your heirs and descendants understand the importance of St. Paul’s in your life.
- Consider St. Paul’s as part of your retirement planning.
Currently, individuals age 70 ½ or older are allowed to take required minimum distributions (RMDs) from their individual retirement accounts (IRAs) and pay those funds directly to a qualified charity. You can name St. Paul’s Endowment Fund as the beneficiary of this type of gift, and enjoy a tax-free distribution from your retirement account.
- You can donate assets other than cash to the Endowment Fund.
Many times, we think of current lifetime gifts to the Church as those of cash. If you hold appreciated stock or securities (especially those with a low tax basis), an effective income tax savings technique would be to donate those shares directly to the Endowment Committee. In doing so, you can avoid capital gains tax, and ensure that the Endowment Fund receives a gift that can continue to be invested and grown over time.
- You can set up Charitable Trusts and name the Endowment Fund as a beneficiary.
A Trust is a separate legal entity that you establish during your life. Trusts can have charities named as the only beneficiary, or can have both charitable and non-charitable beneficiaries. In general, the most common Charitable Trusts are either Charitable Remainder Trusts (CRTs) or Charitable Lead Trusts (CLTs). In a CRT, a non-charitable beneficiary receives an income stream during the term of the trust, and the remainder interest passes to a Charity of your choice. In a CLT, the Charity receives a specified amount at least annually during the term of the Trust, and the remainder is paid to a non-charitable beneficiary. These vehicles are complex and require professional advice to set up and maintain, but can be a very beneficial estate and income tax planning tool.