Consider Planned Giving
Tips to guide you toward the right decision for you.
Understanding Planned Giving
Planned giving is a form of charitable giving that is not a quick cash or check decision. In a nutshell, it is any charitable gift which requires planning, such as setting up an account, naming a beneficiary, or establishing a legal document such as a will or trust.
There are many forms planned gifts can take and the terms can be overwhelming. And yes, planned giving is a bit more complicated than just making an online donation or writing a check to your favorite charity. But, with the help of your financial or tax advisor, the advantages to you can be significant. And while you might think these options don’t apply to you, you might be surprised to learn there is something that fits most anyone. So let's look at some of the options.
The importance of professional advice
Everyone has different personal circumstances, desires and obligations. There is no one-size-fits-all solution for planned giving. That is why getting professional financial and legal advice is important.
We’re happy to help discuss any of these ideas with you so that you know where to start with your advisors. We encourage you to reach out with thoughts or questions.
Call Leslie in our Development Office anytime at (574) 284-5641 or email development@cscsisters.org.
EIN/Tax-ID: 35-0868159
At different ages and stages of life and family
circumstances, you should evaluate your financial needs and charitable goals.
Qualified Charitable Distribution Option
Are you at least 70½ years of age with a traditional IRA? Talk to your financial advisor and ask if making a qualified charitable distribution (QCD) to charity would be a good move. If you are at the age where you must take a required minimum distribution (RMD) from your IRA and you don’t need income, by making a charitable distribution you can avoid federal income tax while you achieve your charitable goals.
Please note, required minimum distributions from a 401(k) or 403(b) are not eligible for qualified charitable distribution, but all or part of those accounts can be rolled over into a traditional IRA first and will then can qualify for a QCD. The timing and the correct paperwork are important so be sure to plan ahead!
Options for Stocks You Own
Do you have stock that you’ve owned for years, that maybe has split repeatedly, and has now appreciated to the point that capital gains taxes would make it painful to sell? Giving stock directly to a charity means you do not have to realize a capital gain. Your charitable deduction will then be figured on the difference between the adjusted cost basis and the fair market value on the day of transfer.
If you have a significant amount of that appreciated stock, it also might be ideal for use in setting up or contributing to a donor advised fund (DAF).
What if you have stock that has lost value? Sell it first, then give the proceeds to charity. You will be able to declare the loss on your taxes and also take a charitable donation on your itemized taxes!
Naming a Beneficiary or Adding a Bequest
One of the simplest forms of planned giving is to name a charity as the primary or contingent beneficiary of an account or policy. Think of life insurance policies, annuities, IRA, DAF, 401(k), 403(b) or other retirement plans that all have named beneficiaries. By selecting a religious organization or charity, you can fulfill your charitable goals and avoid probate. It also can reduce the size of your estate and therefore save on inheritance taxes. As always, talk to your financial advisor first.
And a good, old-fashioned bequest in your will or trust can ensure your final charitable wishes. Bequests can come in many sizes and shapes: specific amounts, percentages, restricted, unrestricted, residual. So get creative and make it work for you!
Even 1% of the residual value of an estate can make a big difference to a charity.
Planning to Leave a Gift?
We honor those who are planning to leave a gift to the Congregation by making them members of our Legacy Club. Since 1996 the Holy Cross Legacy Club recognizes individuals who have named the Sisters of the Holy Cross, Inc., as their primary or contingent beneficiary—or in the form of a bequest in their estate planning documents.
Members of the Holy Cross Legacy Club are ordinary people from all walks of life with different income levels, professions and passion, whose extraordinary generosity will make a positive difference in the future of the Congregation.
If you are planning to leave a legacy, big or small, please let us know! We celebrate intentions and always welcome the call or email.
Leslie C.
phone: 574-284-5641
email: development@cscsisters.org
Where Do Your Donations Go?
The Sisters of the Holy Cross hold a commitment to build communities of justice and love, to eradicate material poverty, and to end gender discrimination. Your help will support our efforts to empower people to live with dignity and in peace—so that all may know the embrace of God’s love through our ministries.