Planned Giving

PLANNED GIVING allows you to express your gratitude to Almighty God by providing for his Church in your estate. It enables you to dispose of your personal resources to promote what you believe is important. Although planned giving requires financial or estate planning, it is not just for those with substantial resources.

There are many ways to make a gift so that it best benefits you and your heirs and your parish. The various types of planned giving involve donating accumulated resources either as an outright gift or as a deferred gift. These include the following:

a bequest in a will;
appreciated property, such as real estate or securities;
life insurance;
life income gifts, such as a pooled income fund, a gift annuity, or a charitable remainder trust; and
life estate.

A bequest in your will

Most people do not make wills. If you die without a will, the state will determine how to divide your assets and will appoint an executor. The state never makes charitable donations with the assets of your estate. By making a will, you can distribute your resources among your family, friends, your Parish, and other favorite charities as you see fit. It also may considerably reduce the taxes for your estate will be liable.

A bequest in a will may take many forms: a specific amount of money; a percentage of your estate; or a specific item, such as securities, real estate, art, antiques. You may also name the Parish as a contingent beneficiary.

You may leave a bequest of any amount. One possibility is to endow the Parish with your pledge. You may provide your weekly pledge to the Parish into perpetuity by leaving the amount of your annual pledge multiplied by 25.

Appreciated property

Securities and real estate may be an extremely advantageous way to make a gift to Ascension and Saint Agnes, especially if the gift has much appreciated value. When you make a gift to the Parish, you do not have to pay capital gains tax on its appreciated value. Usually, you may deduct the full market value of the gift. For example, suppose that twenty years ago you purchased $1,000 of stock in XYZ, Inc., and now the stock is worth $5,000. If you were to sell that stock, you would have to pay tax on your $4,000 capital gain. The capital gains tax on your stock could be more than your initial investment. If, however, you transfer the stock to the Parish, you are no longer liable for capital gains, and you may deduct the full market value ($5,000) on your annual tax return. In short, you would lower your income tax by far more than your initial $1,000 investment, and you would be supporting your parish.

Life insurance

The purpose of life insurance usually changes over time as children grow up and mortgages are retired. There are several ways to remember Ascension and Saint Agnes:

You can make the Parish the owner and beneficiary of your existing policy. The current value of the policy is tax deductible, as are future premium payments.
You can make the Parish a beneficiary of a percentage of the policy. This "Shared Life" approach allows you to share a portion of your assets as well as continue to safeguard family needs.
You can make the Parish a contingent beneficiary of your existing policy. In this case, the Parish would receive the proceeds of your policy if the designated beneficiaries predecease the policyholder.
You can purchase a new policy and make the Parish the owner and beneficiary of it. Premiums are tax deductible.

Life income gifts

There are three basic ways to give to Ascension and Saint Agnes and also to provide income for you during your life (and for others that you designate). These plans may increase your income and also reduce your income taxes without recognizing any capital gains.

1. The Episcopal Church Pooled Income Fund
Your gift (the minimum is only $2,500) to the Episcopal Church Pooled Income Fund gives you a guaranteed income for life and an immediate federal income tax deduction. The Fund 'pools' charitable donations, and a trustee invests them. The Fund pays the income earned to you or to some other beneficiary named by you. Upon the death of the last named beneficiary, the Parish would receive the principal. Besides giving cash, other investment instruments may be given so that capital gains tax is avoided.

2. Charitable Gift Annuity
A charitable gift annuity is similar to the Episcopal Church Pooled Income Fund. It has the following differences:

the rate of income is guaranteed at a fixed rate;
" some of the income received may be tax exempt; and
the minimum gift is $5,000.

3. Charitable Remainder Trust
For larger gifts, usually sums over $100,000, a charitable remainder trust may be established. Like the pooled income fund and the charitable gift annuity, it provides income for life, an income tax deduction, relief from capital gains (if funded by appreciated property), and a possible reduction in estate taxes. You can add to it over the years, and a portion of the trust may be set aside for growth as a hedge against inflation.

Life estate

You may deed your home, your vacation home, farm, or condominium to Ascension and Saint Agnes. You may retain the right to live on the property and/or receive income from the property for as long as you or your beneficiary lives. You receive an income tax deduction when the property is deeded to the church and you avoid any capital gains taxes. In addition, you may reduce your inheritance and estate taxes at your death.

For we brought nothing into this world,
and it is certain we can carry nothing out.
1 Timothy 6:7

NOTICE: The Church of the Ascension and Saint Agnes cannot render legal or tax advisory services. Parishioners should act in consultation with their tax advisor, attorney, and the parish priest.