What is Planned Giving?
The term "planned giving" is not something you hear everyday.....in fact, most people do not make "unplanned" gifts to the CEC or to family or friends. All gifts, in effect, are "planned gifts." This term, however, is frequently used in many not for profit organizations to denote those specific gift plans which carry with them special benefits beyond, but often including, upfront income tax savings. These additional benefits may include capital gain and estate tax savings and the payment of an income stream to you or to those whom you designate. When these gift plans terminate, whatever remains in the account becomes a gift to the CEC and can be used for any purpose you designate.
Please visit the other pages of this site to learn about all the tax-effective, financially prudent ways you can help CEC and invest in the future of the Catholic Church.
Planned giving offers many choices and benefits for donors and their beneficiaries, while also providing substantial current or future support for the Center for Evangelical Catholicism. The CEC Legacy Society is our way of recognizing those donors with such foresight for their generosity. They are also invited to attend the CEC Annual Dinner, as well as conferences and regional events in their area with exclusive opportunities to participate in discussion with visiting speakers.
How to Give
Major ways of making a planned gift include:
Will or Trust Provisions
By including the CEC in your will or trust, you reduce the taxable portion of your estate by the full amount of your gift and guarantee that this unique institution continues to thrive well into the future. To make a bequest to the CEC, you must prepare a new will or add a codicil to your present will. To ensure that your exact intentions are carried out, wills, codicils, trusts, or amendments should be prepared by, or with the advice of, your attorney.
Unrestricted bequests or trust provisions permit the CEC to use your gift wherever it is most needed; restricted bequests or trust provisions underwrite the CEC activities in areas of greatest interest to you. If you're thinking about making a restricted gift, please consult with the CEC in order to ensure that our strategic priorities align with your interests.
Suggested language for making an unrestricted gift by will or trust:
- "I give [the sum of ________ dollars] [all or __________ percent of the residuary of my estate] to the Center for Evangelical Catholicism, 111 Hampton Avenue, Greenville, SC."
Suggested language for making a gift by will or trust for a specific purpose:
- "I give [the sum of ________ dollars] [all or __________ percent of the residuary of my estate] to the Center for Evangelical Catholicism, 111 Hampton Avenue, Greenville, SC, for the following purpose: [state the purpose]."
Retirement Plan Assets and Life Insurance Policies
Retirement account assets such as IRAs, 401(k)s, Keoghs, and 403(b)s are another attractive way to support the CEC. Left to your estate or to an individual who is not your spouse, these assets are subject to significant estate and income taxes. By designating the CEC as the recipient of any benefits remaining in your retirement plan, the gift will escape both estate and income taxes, while also supporting the CEC. You may designate the CEC as a beneficiary of your life insurance policy or donate a policy to the CEC. You may either name the CEC as the primary beneficiary or as a contingent beneficiary of your retirement plan or life insurance policy where the CEC would receive the proceeds should anything happen to a loved one named as a primary beneficiary.
Charitable Remainder Trusts
Friends of the CEC who would like to make a substantial gift but must also consider their own and their spouses' financial needs, may find a charitable remainder trust (CRT) to be an attractive solution. CRTs are life income plans that allow you to make a gift to the CEC and retain a benefit from the assets you give, in some cases making it possible to contribute more than you originally thought affordable. When you establish a CRT, you make an irrevocable gift of assets and in return receive payments for life or for a term of years. When the trust terminates, the assets remaining pass to the CEC.
CRTs offer a number of important potential benefits. Donors receive an immediate income tax charitable deduction for the value of the CEC's remainder interest in the trust while earning income for life (for themselves or for any designated beneficiaries). They may receive increased income in many cases from low-yield, appreciated securities. Donors likely eliminate capital gains tax liability if appreciated property is donated, while also reducing estate taxes. An added benefit to you would be the satisfaction of supporting the CEC during your lifetime.
CRTs are separately managed irrevocable trusts that can be tailored to meet your financial goals, especially with respect to the payout rate, the length of the trust term, and the assets used to fund the trust.
Charitable Lead Trusts
Another planned giving strategy, charitable lead trusts (CLTs), provide a method of making a significant contribution to the CEC while transferring income-producing assets to your heirs at a greatly reduced tax cost. It differs from the CRT in that the CEC receives the income for the term of the trust, which may be for a measuring life (or lives) or a term of years. At the end of the term, the remaining assets in the trust are transferred to the beneficiaries you designate in the trust.
The value of the assets placed in this type of irrevocable trust is frozen for estate and gift tax purposes. Your beneficiaries thus receive any future appreciation in the value of the trust assets free from wealth transfer taxes. In most cases, you receive an immediate income tax charitable deduction equal to the value of the income passing to the CEC.
For further information regarding the CEC's planned giving program, please contact T.J. Nielsen, Executive Director of the CEC (firstname.lastname@example.org).