2015 Fiscal Management & Discipleship Conference J U N E 1 7 , - - PowerPoint PPT Presentation

J U N E 1 7 , 2 0 1 5 E L L E N M . B R U N N E R D I R E C T O R C A T H O L I C C O M M U N I T Y F O U N D A T I O N , I N C . E B R U N N E R @ A R C H I N D Y . O R G J O A N N A S . F E L T Z , J . D . D I R E C T O R O F P L A N N E D G I V I N G J F E L T Z @ A R C H I N D Y . O R G A R C H D I O C E S E O F I N D I A N A P O L I S 1 4 0 0 N O R T H M E R I D I A N S T R E E T I N D I A N A P O L I S , I N D I A N A 4 6 2 0 2 T : 3 1 7 - 2 3 6 - 1 4 8 2 O R 8 0 0 - 3 8 2 - 9 8 3 6 , E X T . 1 4 8 2 F : 3 1 7 - 2 3 6 - 1 4 6 7

2015 Fiscal Management & Discipleship Conference

GIVING SOMETHING & GETTING SOMETHING IN RETURN - CHARITABLE GIFT ANNUITIES

TYPES OF CHARITABLE GIFTS

Bequ quests Charit itab able g gift a annuit itie ies Deferr rred g gift a annuities Charit itab able r remain mainder t trust sts Cha haritable le lead t tru rusts Endowments

2

Lif ife I Insu suran ance Perso sonal al p prope perty Real e estate Retire rement p plans Se Securities an and d other ass assets Works o

• f ar

art

TYPES OF CHARITABLE GIFTS

Bequ quests

 Charit

itab able g gift a annuit itie ies

 Deferr

rred g gift a annuities Charit itab able r remain mainder t trust sts Cha haritable le lead t tru rusts Endowments Lif ife I Insu suran ance

3

Perso sonal al p prope perty Real e estate Retire rement p plans Se Securities an and d other ass assets Works o

• f ar

art

CHARITABLE GIFT ANNUITIES

CURRENT RATES

4

Your Age Fixed Rate

60 years 4.4% 65 4.7% 70 5.1% 75 5.8% 80 6.8% 85 7.8% 90 9.0%

Rates effective April 2015

SAMPLE BENEFITS FOR A $20,000 CHARITABLE GIFT ANNUITY

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Age Annuity Rate Annual Income Deduction

60 4.4 $880 $4,821 65 4.7 $940 $6,192 70 5.1 $1,020 $7,596 75 5.8 $1,160 $8,696 80 6.8 $1,360 $9,701 85 7.8 $1,560 $11,085 90 9.0 $1,800 $12,434

EACH QUARTERLY PAYMENT HAS THREE TAX COMPONENTS

1. 1. Ta Tax–free ee retur urn o n of p princ incip ipal al 2. 2. Tax axab able P Payment ent 3. 3. If If cont ntrib ibute ap e appreciat iated ed p proper erty:

a. a. Capita pital gain ain r reduced b. b. Gain sprea ead o

• ut o
• ver

er l life expec pectancy

6

INCOME PAYOUT OPTIONS

Inc Income f for o

• ne

ne life Inc Income f for t two l lives Cre reat ate a a fl flexib xible def eferred gif gift an t annuit ity

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SECURITY

• Payments guaranteed by charitable organization
• Fixed Income for life
• Unaffected by market fluctuations

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• Immediate partial income tax deduction
• Partial tax-free return of principal
• Reduced estate taxes
• Spread of capital gains tax over donor’s life with use of

appreciated assets

TAX PAYMENTS

INCOME

• Income for life
• Fixed Payments based on current rates as provided by the

American Council for Gift Annuities

• Current Rates as of April 2015 range from 4.4% to 9%

Income for you, your spouse, or other loved one if desired

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• Simple one-page agreement
• Irrevocable

AGREEMENT

MORE BENEFITS

• Cre

reat ate a a las astin ting l legac egacy

• Achie

hieve your p philanthr thropic ic g goals

• Fund with c

with cas ash o

• r s

r stock

• Gain

ain p per ersonal al satis atisfac action

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DEFERRED GIFT ANNUITY

• Funded with cash or stock
• At a future date the donor/annuitant

receives a Fixed Payment for life

• At the death of the last annuitant, the

remainder goes to the organization designated by the annuitant/donor.

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DEFERRED GIFT ANNUITY –CONT.

• Jane age 45
• Makes gift of $20,000
• Fixed Payments to start at 66
• At her death remainder to Catholic Charities

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HOW DO THE PAYMENTS WORK?

DEFERRED GIFT ANNUITY –CONT.

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• Age 66 Jane receives a FIXED Payment for life:
• Annual amount of $1,860.00
• Ordinary Income Portion $1,102.98
• Non-taxable Return of Capital $757.02
• Capital Gain Portion $0
• Age 45 Jane received an Immediate Charitable

Income Tax Deduction: $5,477

ASSETS SUITABLE FOR CHARITABLE GIFT ANNUITIES

• Cas

ash

• Stock (ap

(apprec eciat iated ed sec ecur urit ities ies ar are id ideal eal)

• Real

al E Estat ate

• Municipa

pal a l and d Corporat ate B e Bond nds

• Mutual F

Funds

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GIFT OF CASH

• Ma

Mary age ge 80 80 [One ne Life fe]

• Fu

Funds Ch Char arit itab able Gi Gift An Annuity wit with $20 20,000 00 cash ash fro rom a mat maturing CD CD

• In

In re return rn Ma Mary re receives a Cha hari ritable le Gi Gift Annui nnuity at at a rate te of 6.8% wit with a Fixe xed Pay ayment of $1,36 360 eve very ye year fo for as as long ng as as she he live ves and nd

• A char

arit itab able in income me ta tax de dedu ductio ion of $9,462 62 if if she he itemizes

• Mar

ary de desig signat ates he her par arish ish to to receive ve the he remain mainin ing amo amount le left of the he annui nnuity at at he her de deat ath

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GIFT OF CASH – CONT.

• Mr
• Mr. and

nd Mr

• Mrs. Mi

Mille ller are re 78 78 and nd 79 79 ye years old

• ld [Tw

Two Live ves]

• Fu

Funds Ch Char arit itab able Gi Gift An Annuity wit with $40 40,000 00 cash ash fro rom a mat maturing CD CD

• In

In re return rn the he Mi Mille llers re receive a Ch Char arit itab able Gi Gift Annui nnuity at at a rate te of 5.5% wit with a Fixe xed Paym yment of $2,20 200 every ye year fo for as as long ng as as eithe her of them are re li livi ving and nd

• A char

arit itab able income me tax ax de dedu ductio ion of $16 16,151 51 if if the he Mi Mill llers rs ite temize

• The

The Mi Mille llers de desig signat ate the he an annuit ity to to be be paid paid 50 50% to to the heir par parish ish an and 50 50% to to the he par parish ish sc school endo dowme wment fund und at at the he last st to to die die of the he two wo of them

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GIFT OF STOCK

• Har

Harry age 77 [One ne Lif ife]

• Funds Char

arit itab able Gift Annuit nnuity with 10 1000 sha hares of appre reciated stock ck th that pay ays him im 1.5% yield ld annua nnually and nd is is wo worth $50 50,000

• Sto

tock has a cost st basis of

• f $10

10,000

• In

In return Ha Harry receives a Charitable le Gift Annu nnuit ity at at a rate te of 6.8% with a Fixe xed Paym yment nt of $ 3,10 100.08 08 every ye year fo for as as lo long as as he he li lives, which is broke ken down as fo follow

• ws:
• Capital G

Gain P Por

• rtion $1

$1936. 936.02 02

• Ordinary I

Income Por

• rtion $678.

$678.92 92

• Non
• n- taxab

able R Return n of Capit ital al $ $458. 458.14; a and

• a charitabl

ble income me ta tax deducti tion of

• f $22

22,895.69 69 if if he he itemi emizes

• Har

Harry desig ignat nates his pari rish to re receive th the re remaining am amount unt le left of th the annui nnuity at his is death th

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GIFT OF REAL ESTATE

• Jim

im age age 84 84 [O [One Lif ife]

• Fu

Funds Char aritab able Gi Gift An Annui nuity ty with appr pprec eciated renta tal rea eal estat ate that at is is wo worth $300,000

• Rental re

real estate ha has a cos

• st basis

is of $50 50,000 00

• In

In return Jim receives a Cha haritable le Gi Gift Ann Annui uity ty at at a rate of 7.6% with a fixe xed paym yment of $22,80 800 ev every ye year fo for as long as as he he li lives, s, which is is bro roke ken dow

• wn as

as follo llows:

• Ca

Capi pital Gai ain Po Portion $15 15,623 23.21 21

• Ordinary In

Income

• me Portion $4,058

58.40 40

• Non- taxab

axable Re Return of Ca Capi pital $3,11 118.39 39; an and

• A charitable

le inco ncome me tax ax deduction of $16 163,140.72 if if he he it itemizes

• Jim desi

signates es hi his pa parish sh to re receiv ive the he rem emaining am amount lef left of the he annui nnuity ty at at hi his deat ath

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Quest stion

• ns?

s?

JOANNA NNA S. F FELTZ, J.D. DIRECT CTOR O OF PLANN NNED GIVI VING NG CATHOLIC C C COMMUNI NITY FOUND NDATION 800-382-9836, E

• Ext. 1588 or 3

317-236-1588 jfelt ltz@archin indy.org

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CATHOLIC COMMUNITY FOUNDATION: A TOOLKIT FOR GROWING PERMANENT MINISTRY FUNDS

• Cat

atholic ic C Communit nity F Found undat atio ion A n Annual nnual Re Report

• Pl

Planning anning Pat athways R Road admap ap

• Catholi

lic C c Community F Founda dation V Vide deo

• Stories – The

e Power er o

• f Exam

ample

21

CATHOLIC COMMUNITY FOUNDATION TOOLKIT

CATHOLIC COMMUNITY FOUNDATION ANNUAL REPORT

Annua nnual Re Report

• New report a

availab ailable eac ach Oc October for prio ior fiscal l year ar

• Abbreviat

ated version avai ailab able - Ex Execut utive Summa mmary

• Website
• Bulletin insert
• Full Report w

w/fund nd li list st

• Website
• Display with ministry materials
• Review with ministry leaders

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SHARE OPPORTUNITIES TO SUPPORT YOUR MINISTRY WORK

Pl Plan anning P Pat athways R Road admap

• Educate donors about resources

available to them for personal planning

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SHARE OPPORTUNITIES TO SUPPORT YOUR MINISTRY WORK

Cat Catholic Co Community F Founda dation V Vide ideo

• Website
• Designate a time of year to bring attention to permanent funds

benefitting your ministry community, sharing the video and how fund distributions make an impact as the fund grows

• Highlight opportunities to make gifts – monthly, quarterly,

annually as well as legacy gifts

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STORY TELLING – THE POWER OF EXAMPLE

Stories es

• Nurture

e future e gifts

• Campus Ministries
• Ryan Condon
• The Church as a Beneficiary
• Thy Will Be Done

Website Bulle letin inserts - quarterly Pr Printed copies w with min inistry mat aterials als

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QUESTIONS?

ELLEN M N M. BRUNN NNER DIRECTO TOR CATHOLIC C C COMMUNI NITY FOUND NDATION 800-382-9836, E

• Ext. 1427 or 317-236-1427

27 ebrunner er@archindy.org

26

The he examples and infor

• rmation
• n prov
• vided are fo

for illustra rative and ed educational pu purposes

• nl

nly and shoul

• uld not be

be consider ered ed tax or

• r legal advice. Please cons
• nsul

ult with your tax or

• r

legal egal advisor

• r about

ut pr proceeding with your ur gi gift plan an.

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