Overview of GIFT PLANS
There is more than one way to achieve charitable giving goals. When considering specific charitable planning, the Presbyterian Foundation recommends consulting with legal and financial advisors to discuss plans and potential tax advantages.
Permanent endowment funds
– provide income in perpetuity to the church or a chosen mission. The fund can be established during the donor’s lifetime or through a bequest.
Charitable Lead Trust*
– appeals to individuals who may be subject to a large estate tax. The charitable beneficiary named by the donor receives payments from the trust, usually for a set term of years. At the end of the term, the trust assets are returned to the donor’s estate or passed on to heirs.
Charitable Remainder Trust*
– allows the donor to make a future gift to the Church or its mission while receiving income during his or her lifetime. The trustee manages assets and makes payments to the income recipient. When the income payments end, the remaining trust assets become available for the work of the Church according to the donor’s wishes.
– are made through a donor’s will. A will can be written to accomplish a variety of needs, such as benefiting family and friends. It can also fulfill a desire to support a mission or program. Bequests can be made directly to the church or made to the Presbyterian Foundation to establish a permanent endowment fund to benefit the church.
– have increasing importance to charitable giving. Designating a charitable beneficiary for retirement account(s) such as IRAs, 401(k)/403(b), Keogh and others may reduce income and estate tax liabilities for the donor and his/her heirs. A donor may also establish a charitable trust during his/her lifetime using assets from a retirement account.
Donor-Advised Funds (DAF)
– are like an online charitable checkbook and make giving convenient and flexible. An irrevocable gift, a DAF provides an opportunity to teach and share philanthropic values with children or grandchildren, and creates a legacy of generosity. The donor can fully manage the fund online, including making grant recommendations and additions to the fund.
– naming the church as the beneficiary of a life insurance policy may offer benefits, an opportunity to make a gift where other options are not feasible, and allows a gift to pass outside of probate. Policies may no longer be needed or serve the purpose for which they were originally intended, such as a business that no longer exists, or for children or loved ones who may not need the additional income. A gift of life insurance may allow the donor to establish an endowment type gift that may not have seemed possible under other circumstances.
– can provide unique gift opportunities regardless of whether the property has increased or decreased in value. A donor may donate a home or other property that is no longer used or the donor does not wish to manage. A donor can also make a gift of a personal residence or farm property and still retain the use of it during his or her lifetime.
Pooled income fund
– are gifts pooled together and invested under professional management. The individual receives a share of the net income based on their share of the pool. After the individual’s lifetime, that share is withdrawn from the pool to support the designated Presbyterian mission.
Trust services provided by New Covenant Trust Company, N.A., a subsidiary of the Presbyterian Foundation.