Types of Planned Gifts

Ways to Make a Planned Gift

  • Bequests & Wills/Living Trusts
  • Charitable Gift Annuities
  • Charitable Remainder Trusts
  • Pooled Income Fund
  • Life Insurance & Retirement Accounts
  • Real Estate, Appreciated Property, & Tangible Personal Property
  • Charitable Lead Trust

ECF recommends that you seek appropriate professional legal, tax and financial advice before finalizing any planned gift.

Bequests & Wills/Living Trusts

The simplest way to make a planned gift is by naming your parish or other Episcopal ministry in your will or living trust. A bequest is a meaningful way to support a charity’s work without affecting your cash flow during your lifetime. Your attorney can include it when you prepare or revise your will/living trust.

Charitable Gift Annuities (CGA)

A charitable gift annuity is a simple contract between you and the Episcopal Church Foundation. In exchange for your irrevocable gift of cash or securities, ECF agrees to pay one or two annuitants whom you designate a fixed annuity for life, and you will be entitled to an income-tax deduction in the year you make the gift.

At ECF the minimum age to start receiving annuity payments is 55. However, you can establish a charitable gift annuity at a younger age and defer the start of annuity payments to age 55. The minimum amount to establish a charitable gift annuity at ECF is $5,000.

You will receive an immediate income-tax deduction for a portion of your gift, and your annuity is backed by all of ECF’s assets.

Download our charitable gift annuity booklet for more information.

Charitable Remainder Trusts

A charitable remainder trust is a way to achieve your current and long-term financial, estate and philanthropic goals. A donor makes an irrevocable transfer of cash, stock, real estate or other assets to a trust which provides a tax deduction to the donor and produces income for the donor, or other beneficiaries, either for a fixed period of time of up to twenty years or until the donor or other beneficiary dies. At the conclusion of the trust period, the remaining principal assets will be distributed to your parish or other organizations, at least 51% must be given ultimately to Episcopal Church institutions.

A charitable remainder trust allows you to designate one or more beneficiaries of regular payouts from trust proceeds (for either a fixed dollar amount or a fixed percentage) during yours or another’s lifetime or for a period of time.

Download our charitable trust booklet for more information.

Pooled Income Fund

In a pooled income fund, your gift of $2,500 or more, will be “pooled” with other gifts in a professionally managed investment portfolio. You, or your designated beneficiary, will receive an income for life, although the amount of income will depend on the rate of return on the fund’s investments. You will receive an immediate federal income tax deduction and a possible reduction on your estate taxes. Upon your death, or that of the final beneficiary, the remaining value will be given to the parish or Episcopal organizations you name.

Download our pooled income fund booklet for more information.

Life Insurance

Life insurance is another way to make a sizeable gift to the church. For example: You can purchase a new policy and make the church the owner and beneficiary of that policy. This enables you to “leverage” your gift, ultimately making a much larger gift than otherwise possible. Contributions to your church to pay the ongoing premiums become tax deductible. You can also make the church the owner and beneficiary of an existing policy. The current value of the policy is tax deductible, as are future premium payments. You can make the church a contingent beneficiary of an existing policy, or name the church to receive the proceeds of the policy if the designated beneficiaries predecease the insured. Your life insurance professional can assist you with making such gifts.

Retirement Accounts

The remainder value of many retirement accounts can be heavily taxed when left to friends and family, but will pass tax-free to your church or other charities upon your death. Review with your attorney or financial advisor to learn if this is an appropriate gift for you.

Real Estate, Appreciated Property, & Tangible Personal Property

Real estate or securities can be the source of your gift to the church. Using a Charitable Life Estate Contract, for example, you can deed your home, vacation home, farm, ranch, or condominium to the church and retain the right to live on the property and/or receive income from the property for as long as you live. You receive an income tax deduction when the property is deeded to the church and normally avoid any capital gains taxes when making the transfer. Your inheritance and estate taxes may be reduced at the time of your death. Gifts of appreciated real estate or securities allow you to avoid capital gains taxes. It is important to transfer the stock or real estate to the church prior to selling it. However, if the securities or real estate have decreased in value, you should sell the assets before making the gift, thus establishing a capital loss and a potential tax deduction.

Gifts of tangible personal property, such as jewelry, coins, works of art, automobiles, etc. may also be given to the church. You are responsible for setting an appraised value on the gift. Any gift over $5,000 must be independently appraised.

Charitable Lead Trust

The charitable lead trust, another estate planning tool, enables you to transfer assets to a trust that pays its income to the church or church related organization for a set period of time. At the end of the term, the principal and all capital appreciation returns to you or others that you name.

Download our general brochure on different types of planned gifts for more information.