Below you will find an overview of several planned giving methods. We have included explanations to help you better understand the way they work so you can make an informed decision about the method that is best for you.
If you ever have any questions, please do not hesitate to contact our Finance Team at (850)894-1400 or [email protected] A member of the team would be happy to help.
Charitable gift annuities (CGAs) are one of the simplest and most popular forms of life income gifts. It involves a simple agreement whereby the charity accepts a gift of cash, securities, or property and agrees to pay a specified, fixed dollar amount to the annuitant (the donor or another beneficiary).
The fixed amount is set by the American Council on Gift Annuities and is based on the annuitant’s age. Because the gift is irrevocable, the charity maintains control of the gift and becomes responsible for paying income for the lifetime of each annuitant.
As its name suggests, a charitable gift annuity consists of two elements:
1) an outright charitable gift,
2) the purchase of a fixed income annuity contract. Payments can begin immediately or can be deferred for a period determined by the donor and set forth in annuity contract. The payment period can be measured by one annuitant’s life (who is in most cases is the donor) or by the lives of two joint and survivor annuitants (who are usually husband and wife). Charitable gift annuities are not issued for a fixed term of years. As will be discussed, however, it is possible to terminate the annuity payments in advance of the life measuring term.
Unlike charitable remainder trusts or pooled income funds, whereby the obligation to make payments is limited solely to the contributed assets or segregated fund, a charitable gift annuity is considered a general obligation of the issuing charitable organization. Charitable gift annuities, therefore, take on much of same characteristics as commercial annuities with the issuing charity acting as the insurer. Many states require issuing organizations to be licensed and to maintain investment reserves.
1. You may transfer cash, securities or real estate to the PCA Foundation in care of Wildwood Presbyterian Church.
2. You receive an income tax deduction and may save capital gain tax. The PCA Foundation pays a fixed amount to you or anyone you name for life. Typically, a portion of these payments are tax free. Regarding Capital Gains Tax – At the sale of appreciated assets within the trust, capital gains tax is deferred over the expected lifetime of the donor, allowing for the full reinvestment of the assets. The annual distribution for a number of years may then be part tax-free return of capital, part ordinary income and part subject to capital gains tax.
3. When the gift annuity ends, the remaining principal passes to Wildwood Presbyterian Church.
A Bequest is the act of giving – not the act of receiving property by will.
If you consider including a gift to Wildwood Church in your will or living trust, the gift is called a charitable bequest, this type of gift offers these main benefits:
Simplicity. Just a few sentences in your will or trust are all that is needed.
Flexibility. Because you are not actually making a gift until after your lifetime, you can change your mind at any time. Your circumstances may change during your lifetime.
Versatility. You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of your estate to us.
Tax Relief. If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift’s full value.
To make a charitable bequest, you need a current will or revocable living trust.
Your gift can be made as a percentage of your estate after taxes, expenses and specific bequests have been paid. Or you can make a specific bequest by giving a certain amount of cash, securities or property. After your lifetime, Wildwood Church receives your gift.
When planning a future gift, it’s sometimes difficult to determine what size donation will make sense. Emergencies happen, and you need to make sure your family is financially taken care of first. Including a bequest of a percentage of your estate ensures that your gift will remain proportionate no matter how your estate’s value fluctuates over the years.
Contact the Wildwood Finance Team at (850)894-1400 or [email protected] with any questions about naming Wildwood Church in your will or living trust. A member of our finance team would be happy to help.