Increase Font Decrease Font

Giving Wisely

At the Roman Catholic Foundation, we take seriously our responsibility to be good stewards of the money entrusted to us to support your favorite parish, school, or ministry.

Your gift can take multiple forms and can help you address your personal financial goals. Do you want to make a significant gift during your lifetime, or would a gift as part of your estate work better? Do you have a particular asset that you are thinking of donating? Do you want to increase your retirement income, or is your primary goal estate preservation? Are you carrying excess life insurance or a large balance in your retirement plan?

We are pleased to work with you and your advisors to help craft the gift plan that works best for your goals and dreams. Here are some places to start as you consider your options:

Give now, or give later?

A significant lifetime gift will allow the Roman Catholic Foundation to assist your favorite parish, school, or ministry. In turn, it will give you maximum tax benefits, especially attractive if you are in high earnings years. It can also be the simplest gift to arrange.

You may, however, prefer to leave your assets and cash flow undisturbed until your death, and instead make your gift through your estate. Estate gifts to the Roman Catholic Foundation are critically important to your favorite parish, school, or ministry’s long-term financial strength and will ensure its ability to meet the opportunities and challenges of the future. Estate gifts are typically provided through a will or living trust, a retirement plan, or a life insurance policy.

What assets to give?

Appreciated securities. Get the same tax deduction as if you had given cash, but use stocks or bonds that cost you less than they are currently worth. Your deduction is based on market value, but you incur no capital gains liability on the transfer to us. It’s one of the best tax incentives left, and we can work with your broker to make a gift of securities simple.

Real estate. Gifts of land, vacation homes or income-producing properties to the Roman Catholic Foundation can provide wonderful benefits to your favorite parish, school, or ministry. You can give real estate outright, transfer it in a part sale/part gift arrangement, use it to fund a life-income gift, or give your residence and reserve the right to continue to live there. We have to review each gift proposal carefully, and sometimes it’s not practical for us to accept the gift.

A retirement account. The balance remaining in your retirement account after your death is potentially subject to double taxation if it passes to your heirs: it’s taxed both as income and as an estate asset. In some cases, over 75% of the account value may be owed in taxes. If you designate the remainder of your account to the Roman Catholic Foundation, benefiting your favorite parish, school, or ministry, and then use other assets for gifts to your family, you will avoid both taxes on your plan assets.

How can a gift pay me back?

Some gifts to the Roman Catholic Foundation allow you to benefit your favorite parish, school, or ministry later, but receive a steady payment stream now. You can receive fixed or variable income, take payments for your lifetime or for a term of years, and even direct income to other beneficiaries. In essence, you make a contribution yet retain benefits from what you gave away. Such gifts include charitable remainder trusts and charitable gift annuities.

Your charitable deduction is based on the full market value of the assets you gave, minus the present value of the income interest you retained. The higher the income payout, the lower the deduction.

These flexible gifts can address a variety of your financial family and philanthropic planning objectives, and they help solidify your favorite parish, school, or ministry’s long-term financial strength.

My goal is to keep my estate intact, not increase my income ...

Consider a charitable lead trust. It works essentially in reverse from the life-income gifts discussed in Questions 3 and 4, above: your gift is placed in a trust that pays income to us, benefiting your favorite parish, school, or ministry, for a term, then returns the principal to beneficiaries you designate.

The lead trust can be an effective tool to remove a portion of your assets and estate from tax liability and pass appreciation to your children free of transfer tax.