Additional Ways to Give
Parishioners may also wish to contribute donations from other sources. Please be aware that, before implementing any significant tax or financial planning strategy, individuals should contact their financial planner, tax attorney or tax advisor as appropriate. Other sources include:
Bequests: Simple bequests can easily be included in a person’s will. If a will has already been written, a codicil allows for a new provision to be added. The following legal wording is sufficient for leaving a gift to the church through a bequest.
“I bequest the sum of __________, or __________% of the residue of my estate, to St. Philip Neri Catholic Church whose principal office is located at 292 Munn Road, Fort Mill, SC 29715.”
Insurance Policy: A gift of life insurance enables a parishioner to make a major contribution to the Parish at a relatively low cost. Several options exist:
Donate an Existing Paid-Up Policy: Through this method, a parishioner can name the Parish as the permanent owner and beneficiary of the policy. Contributors can deduct the amount of the “terminal interest reserve” as a charitable contribution for income tax purposes. Based on IRS language, this reserve is equal to the “approximate cash surrender value.”
Purchase a New Policy: The Parish can be applicant, owner, and beneficiary for a new policy. A parishioner would make annual contributions to the designee (the church) that equal the premium cost, with the church then paying the premium. These annual contributions are considered charitable contributions for income tax purposes.
Name the Parish as Beneficiary: A parishioner will not receive any current income tax benefit, with the designee (the church) ultimately receiving the death benefit. The insurance benefits will be included in the parishioner’s estate, with the estate subsequently entitled to an estate tax charitable deduction for that amount.
Name the Parish as Contingent Beneficiary: The Parish would receive insurance proceeds should a parishioner’s primary beneficiary die before the parishioner.
Stocks or Securities: Parishioners may reduce or eliminate their capital gains on appreciated investments by contributing the appreciated stocks or securities to the Parish. For example, instead of donating cash, a donor may give a stock holding that has a current total value of $10,000 and a cost basis of $2,000. If the appreciation of the stock qualifies as a long-term capital gain, parishioners may be able to deduct the full value of the gift, subject to certain restrictions. In addition, the parishioner may avoid tax implications on long-term capital gains.
Charitable Remainder Trust: Parishioners may also set up a charitable trust in the name of St. Philip Neri and subsequently donate an asset (usually a highly-appreciated asset) to the trust. After the asset is placed into the trust, the asset will be sold and the proceeds reinvested in an income-producing portfolio. Depending on the type of trust that has been arranged, the Parish will then receive, for life, an annual cash flow equal to a fixed percentage of the value of the asset, or a fixed-dollar amount. The parishioner, using an IRS-approved computation, will receive an immediate tax deduction equal to the fair market value of the asset minus the present value of the estimated future income stream. Importantly, no capital gains taxes are due upon the sale of the asset inside the trust.
Saint Philip Neri Catholic Church - 292 Munn Road East · Fort Mill, SC 29715 · Phone: 803-548-7282 · Fax: 803-547-2999