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Planned Giving: Leave a Legacy That Will Make a Difference

 

“The future of our ministry will be built on today’s planned and deferred gifts.” (CCUSA)

 

Benefits of Planned Giving

Know that you have made an immediate and/or prolonged and sustained impact on CCETN’s ability to fulfill its mission.
• You generally may receive a charitable income tax deduction for the amount of cash or the fair market value of assets donated to CCETN as of the date of transfer.
• Bequests under a Will or testamentary trust, beneficiary designations, and other transfers taking effect at your death help continue your legacy by allowing your assets to continue to support the causes most important to you after your death. Such transfers may qualify for an estate tax charitable deduction for the fair market value of the assets as of the date of death.
• Other tax and non-tax benefits may be available depending on the nature of the gift and/or the donated asset.

Some Options for Leaving Your Legacy

Donate Cash

  • Donating cash is the simplest way to give and helps CCETN meet immediate needs. Pledge gifts also help CCETN plan its budget for the time period covered by the pledge.
  • Examples: Single gift; pledge gift; honor/memorial gift.

Donate Assets

  • A gift of assets allows CCETN to decide whether it may be more advantageous to sell the asset to fund an immediate capital need or whether to instead hold the asset for generation of dividends, rents, or other periodic income.
  • Examples: stocks, mutual funds, bonds, real estate
  • You may be able to avoid capital gains tax that would have been due if you had sold the asset and donated cash instead of simply donating the asset. So the after-tax cost of the gift is less than donating cash!
  • Real estate may be given while retaining a right to use it for your lifetime. Consult with CCETN in advance re: its gift acceptance policy related to real estate and other non-financial assets.

Make a Qualified Charitable Distribution from an IRA

  • If you are age 70 ½ or older, you may direct the administrator of your IRA to make a distribution directly from your IRA to CCETN in an amount up to $100,000 per year.
  • This amount may be counted toward satisfying your annual required minimum distribution from the IRA. The donated amount will not be included in your taxable income for the year, so no additional income tax deduction would be allowed, but the resulting lower taxable income may provide indirect benefits in the form of certain tax credits and deductions that would otherwise be reduced as taxable income increases.

Make a Bequest in a Will or Testamentary Trust

  • You may choose to name CCETN as a beneficiary in your will or testamentary trust. For example, you may choose to leave CCETN specific assets, a percentage of your estate, or a specific dollar amount. You may also choose to make CCETN a “contingent” beneficiary if, for example, a spouse, child, or other beneficiary does not survive you.
  • Bequests allow a donor to make a substantial gift at a time when he or she will no longer need the assets. Bequests are revocable and can be changed if circumstances or family needs change in the future.

Designate CCETN as an Account Beneficiary

  • Examples: life insurance policy, retirement account, bank account, investment account
  • Avoid income tax imposed on withdrawals from retirement accounts with respect to the portion of the account given to CCETN. You may choose to give retirement assets to charity, reserving other, more tax-neutral assets for family members.
  • Life insurance can be used to make a substantial gift at a relatively low cost.
  • A beneficiary designation may be changed from time to time in case circumstances or family needs change.
  • Younger adults may purchase paid-up life insurance policies for a substantial amount of coverage when they are raising families, educating children, etc., and may no longer need that much coverage in their golden years. Designating CCETN as a beneficiary of that no-longer-needed but paid-for coverage helps ensure a legacy.
  • You may want to go one step further and transfer ownership of a life insurance policy to CCETN (not just designate CCETN as the beneficiary). In doing so, you would give up the right to change the beneficiary at a later date; however, you may be entitled to an immediate income tax charitable deduction if the policy has a cash surrender value.

The Gift of Giving

Every charitable gift, big and small, goes a long way; you do not have to be wealthy to make a planned gift.

 

Help Us Tailor Your Giving Experience

CCETN can consult with you and your attorney, CPA, financial advisor, and/or insurance professional to establish a planned giving strategy that will optimally benefit both you and CCETN

I’m Ready to Give

  • CCETN’s legal name is Catholic Charities of East Tennessee, Inc.
  • Tax ID Number is 62-1377551.
  • When transferring stock or other assets, use the contact information below; that way, we can properly receive and acknowledge your gift and provide appropriate tax receipts.

 

Contact Us

Deacon Hicks Armor
Director, Stewardship & Strategic Planning
harmor@dioknox.org

Your planned giving sustains CCETN’s mission and clients for the future.