How do you want to be remembered?
Christ Church has been blessed by a growing number of parishioners who have generously remembered the church in their financial plans. These parishioners – past and present -- have cared deeply that the life and ministry of Christ Church remain a spiritual beacon in Coronado for generations to come. Without these gifts, it is certain that Christ Church would be a much different place.
It was over a century ago that Captain and Mrs. Charles Hinde donated the land and funds for the construction of Christ Church. This same generosity has continued over the decades. Today, the income from a donated trust helps with the operating expenses of the church. Recent planned gifts have allowed the church to install artificial grass, to purchase new vestments and altar appointments, and to make considerable improvements to the rectory.
Making a planned gift is not just for those who have enormous wealth or special financial expertise. Planned giving is for anyone with a generous spirit who wants to remember Christ Church in their financial plans. There are many creative options to consider in making a charitable gift to the church, including those with tax benefits.
Where to start if you interested in giving a gift? Consider first reflecting on the matter in prayer. There is no need to go it alone. If you would like to discuss your intentions with us, the rector would welcome the opportunity to meet with you. You can make an appointment with the rector at email@example.com.
To learn more, please click below:
Individual Endowment Funds:
Pooled Income Fund
Are you looking for a trustworthy investment fund that you don’t have to manage yourself, yet it will pay you income for your lifetime and then use the remainder at your death for a charity that you want to see perpetuate? Then a pooled income fund may be for you, and the Episcopal Church Foundation can help.
A pooled income fund is a trust that is established and maintained by a public charity, in this case the Episcopal Church Foundation. The pooled income fund receives contributions from individual donors that are commingled for investment purposes within the fund. Each donor is assigned "units of participation" in the fund that are based on the relationship of their contribution to the overall value of the fund at the time of contribution. Each year, the fund's entire net investment income is distributed to fund participants according to their units of participation. The advantage of a pooled income fund is that many small donations (the minimum donation is $2500) are pooled to take advantage of investment opportunities that are normally restricted to large investors.
Upon your death, the remainder is used as you had designated, for any charity within the Episcopal church, e.g. your parish, school, diocese, mission or combination thereof.
Contributions to pooled income funds qualify for charitable income, gift, and estate tax deduction purposes. The donor's deduction is based on the discounted present value of the remainder interest. Donors can also avoid recognition of capital gain on the transfer of appreciated property to the fund. Finally, the income can be designated for yourself, or any other person you choose at the time of the donation. For more information, contact the episcopalfoundation.org or 1-800-697-2858
Gifts of Appreciated Real Estate
Do you want a really large tax deduction but don’t have the liquid assets to “create” one? Do you own your home, or perhaps even a second home, empty land, or investment property? Did you know you can donate a percent of the value of that property without selling the property in the year you claim the tax deduction? If this fits your situation, read on.
Similar to stocks, if you donate real estate that has appreciated in value over the years, you can avoid capital gains tax. However with real estate, you can donate all or a portion (as a percent) of the real estate to a qualifying charity such as Christ Church in the form of a title to such property. You can take the tax deduction immediately, but the sale of the property can happen at a later time. There are specific rules to qualify. First, you must have the property officially appraised within 60 days prior to making the gift. Second, you cannot have a prearranged buyer, price, or contract to legally sell the property prior to the gift being made.
The advantage to you is that you get both a California and Federal income tax deduction for the appraised value of the property you donate. You avoid capital gains tax for the appreciated value of the property you donate, and you reduce your estate value which might reduce any estate tax you pay. The charity receives the proceeds (or percent if a partial gift) from the sale of the property at the time it sells. As real estate value fluctuates, the charity may receive more or less than the appraised value. Also, if you have a mortgage or loan on the property, it will have to be satisfied or addressed.
As this is a relatively obscure way to donate assets to a charity, please contact your tax accountant, financial advisor, and lawyer for further guidance. The Episcopal Church Foundation also has a retained attorney on staff for unique gifting guidance.
Unique Giving Opportunities for Seniors of 70
The 2015 IRA charitable rollover legislation makes the IRA charitable rollover permanent. The charitable IRA rollover, or qualified charitable distribution, allows you to use your IRA assets to make charitable gifts. It is a special provision that allows individuals age 70 1/2 or older to transfer IRA assets, up to a total of $100,000, directly to public charities, such as to the Christ Episcopal Church Endowment Fund. What a wonderful way to build up our church’s endowment! These contributions will not be added to your taxable income for that year. However, you may not take a charitable tax deduction for this contribution. These transfers can also count toward their required minimum distribution (RMD) – see RMD info below.
Making a donation under this provision is simple and straightforward. If you would like to make a qualified charitable distribution to Christ Episcopal Church from your Individual Retirement Account, please speak with your IRA administrator and/or your personal CPA. You should include the church EIN on your withdrawal request.
Your required minimum distribution (RMD) is the minimum amount you must withdraw from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account (e.g., 401k) after you reach age 70½. Roth IRAs do not require withdrawals. You can withdraw more than the minimum required amount each year. Your withdrawals (except for qualified charitable distributions) will be included as taxable income for the year. Generally, an RMD is calculated for each non-Roth retirement account annually by using an IRS table. Although the IRA custodian or retirement plan administrator may calculate the RMD, the IRA or retirement plan account owner is ultimately responsible for calculating the RMD. If the owner fails to withdraw the full amount of the RMD, or fails to withdraw it on time, the amount not withdrawn is taxed at 50%. For additional information, please see www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs.