What is planned giving?
The Church is the Body of Christ on earth and carries on His ministry in the world today. Making a Planned Gift to the Church is an opportunity to leave a legacy that strengthens His ministry and expresses our thankfulness to Him.
Through a charitable gift, you can have a significant positive effect on the ministries of the Church and the people whose lives are changed by them. The impact of your gift will be felt for years and generations to come. A charitable gift may also give you substantial current tax benefits as well as estate tax benefits.
Eternal Light Society was established in 2012 as an organization of all that have made a commitment to support the ongoing ministries of our Church through a planned gift. Regular meetings, luncheons, dinners, newsletters, financial planning seminars, annual artoclasia, annual memorial service and more make up the various programs and benefits of the Eternal Light Society.
As you explore the ways outlined here by which you can support the ministries of the Church, please know that the staff in the church office, the Metropolis, and the Archdiocese are available to assist you in any way possible.
Ways to Give
Consider making a gift in one of the following ways:
BEQUEST
When you include the Church in your testamentary plans, you support its vital mission on a long-term basis. The most common way this is done is through a single bequest. Any type of property, including cash, securities, real estate, works of art and jewelry, and more, may be given to the Church through a bequest. Your generosity will assist in sustaining the faith, ministries, and mission of our Orthodox Christian Church in the world today and for generations to come.
TYPES OF BEQUESTS
Specific Bequest – This may be a specific dollar amount, a specific piece of tangible or real property, or a stated percentage of your estate.
Residuary Bequest – This includes all or a portion of your estate after the distribution of other
specific bequests, debts, taxes, expenses & fees.
Contingent Bequest – Under this type of provision, the Church will only receive the bequest if the primary intention cannot be met or if certain specified circumstances take place.
GIFTS OF CASH
A gift of cash is by far the easiest and most common way to make a charitable gift to the Church. If you itemize, you are entitled to a charitable deduction based on the full amount of your gift (up to 50% of adjusted gross income). If you cannot use the entire deduction this year, it can be carried forward over the next five years.
GIFTS OF SECURITIES
If you own appreciated securities (held more than 12 months), you can benefit by giving them to the Church:
• In most cases, you can avoid payment of capital gains tax that would have been due if you sold the shares; and
• If you itemize, you will receive a charitable deduction for the full fair market value of the gift. Gifts of appreciated assets are generally deductible up to 30 percent of your adjusted gross income. Any excess can be carried over for five years.
GIFTS OF LIFE INSURANCE
Do you have a life insurance policy that is no longer needed? Rather than giving it up, consider gifting the policy to the Church. Unneeded life insurance often provides a significant method of supporting the Church. If you designate the Church as the owner and beneficiary of a paid-up life insurance policy, you receive a charitable deduction approximately equal to the replacement cost. If the policy is not paid up, you receive an income tax deduction equal to the “cash surrender value” in the year the gift is made. Even term life policies can have significant value. Check with your advisor to find out.
GIFTS OF REAL ESTATE
Gifts of real estate offer you an opportunity to make a significant gift to the Church. An outright gift of real estate held for more than 12 months is the simplest method and is governed by the same basic rules governing securities. When the property has been transferred through a properly executed deed, in most cases, you receive the following benefits:
• You can avoid capital gains tax on the appreciation; and
• You receive an income tax deduction based on the current appraised fair market value. You can claim a deduction up to 30% of your adjusted gross income in the year of the gift. Any excess may be carried over for up to five years.
Speak to your attorney or tax advisor about the following real estate giving alternatives:
• Real Estate Gifts Used to Fund a Life Income Trust
• A Retained Life Estate
QUALIFIED RETIREMENT PLANS
For many individuals, retirement accounts are a major financial resource and the basis for a financially secure future. Qualified retirement plans provide substantial benefits for accumulating funds for retirement. However, these plans can be subject to both estate and income taxes when funds are distributed or when the plan participant dies. A current distribution directly from a retirement account to the Church can result in significant tax savings. In addition, by naming the Church as the beneficiary of the remainder after your death and/or the death of your spouse, 100 percent of the plan’s balance would avoid both income and estate taxes. You can also name the Church as a beneficiary for a portion of the plan along with your spouse and/or children. If you wish to make this type of gift, contact your plan administrator for a “change of beneficiary” form.
CHARITABLE GIFT ANNUITY
A very popular life income arrangement, a charitable gift annuity, is a simple contract between you and the Church. You make a gift and, in return you receive:
• Guaranteed fixed-income payments for you and/or another beneficiary for life. The rate is
based on your age, the number of annuitants, and the date of the gift. If the gift is made in cash or nonappreciated assets, a portion of the income payment will be tax-free;
• A substantial charitable income tax deduction in the year the gift is made. Any excess can be carried forward;
• Minimization or elimination of capital gains tax on appreciated, long-term property; and
• Because the payout rate on a gift annuity is based on the age of the beneficiary or
beneficiaries at the time the gift is made, the guaranteed fixed payout rates are particularly beneficial if you are 55 years or older.
DEFERRED GIFT ANNUITY
Younger donors may find the deferred charitable gift annuity an attractive giving alternative by which you make the gift now and defer receiving payments until a future date which you
designate. The annuity rate is based on your age at the time you establish the annuity and the number of years before the first payment.
Benefits:
• A substantial charitable income tax deduction in the year the gift is made;
• Deferred annuity payments – often deferred until retirement when you will likely be in a lower income tax bracket;
• Annuity payments, a portion of which are taxfree if established with cash or non-appreciated securities, are fixed; and
• Your philanthropy helps to secure the future of the Church.
CHARITABLE LEAD TRUST
The charitable lead trust is a giving opportunity which enables you to make a gift to the Church and transfer assets to your heirs in the future at a reduced gift tax cost. As a lead trust donor, you irrevocably transfer assets, such as cash, securities or other property to a charitable lead trust. The trust is set up for a specific term of years during which you designate the Church as the income beneficiary. When the term of the trust ends, the trust property reverts to your heirs, either outright or in trust. While no current income tax deduction is available for the lead interest, the income is tax-free and a gift and estate tax charitable deduction is available. This program is attractive to individuals desiring to transfer significant assets to heirs and an interest in reducing estate taxes.
Benefits:
• You qualify for a federal gift tax deduction which may vary modestly depending on the timing of your gift;
• For the term of the trust, the Church will receive fixed or variable payments depending on the type of trust. Upon termination of the trust, your designated beneficiaries will receive the trust’s assets; and
• Any asset growth occurring within the trust will be distributed to trust beneficiaries free of gift or estate tax.
CHARITABLE REMAINDER TRUSTS
In a charitable remainder trust, you may transfer assets to the trust while retaining the right to receive income for life or a term of years. You can also name beneficiaries to receive an income stream.
Benefits:
• A substantial income tax deduction and avoidance of capital gains tax on the transfer of
appreciated assets to the trust;
• Income for life for you and/or a loved one; and
• Federal estate and inheritance tax savings.
LIVING WILLS
When doing your estate planning it is common to also include a Living Will dealing with how medical care will be provided if you are unable to give the instructions yourself. The Archdiocese has prepared an Orthodox Living Will that can be filled in and reviewed by your family, doctor and legal advisor. For Orthodox faithful, it is important that the Living Will reflect your Orthodox Christian beliefs. There are many prayers and observances that can give great comfort to the patient and family. If you choose to have your attorney prepare your living will, we urge you to include language that reflects your Orthodox Christian beliefs.
The material provided here is designed to furnish our Orthodox Christian faithful with general information. It is not intended as legal or financial advice. When considering a charitable gift, be sure to consult your attorney, professional adviser, or accountant to ensure that it meets your individual circumstances. Please contact your church if you have any questions or concerns about planned giving opportunities. The Department of Stewardship, Outreach & Evangelism as well as the Office of Parish Development will be happy to assist you, your priest, and your advisers in developing an approach that will best fit your needs and desires.
Contact your priest or these Archdiocesan Offices with questions or for further assistance:
Stewardship Ministries Telephone 646-519-6160
E-mail [email protected]
Office of Parish Development Telephone 847-478-5275 E-mail [email protected]