2015 Fiscal Management & Discipleship Conference 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
GIVING SOMETHING & GETTING SOMETHING IN RETURN - CHARITABLE GIFT ANNUITIES
TYPES OF CHARITABLE GIFTS Bequ quests Lif ife I Insu suran ance Charit itab able g gift a annuit itie ies Perso sonal al p prope perty Deferr rred g gift a annuities Real e estate Charit itab able r remain mainder t trust sts Retire rement p plans Cha haritable le lead t tru rusts Se Securities an and d other ass assets Endowments Works o of ar art 2
TYPES OF CHARITABLE GIFTS Bequ quests Perso sonal al p prope perty Charit itab able g gift a annuit itie ies Real e estate Deferr rred g gift a annuities Retire rement p plans Charit itab able r remain mainder t trust sts Se Securities an and d other ass assets Cha haritable le lead t tru rusts Works o of ar art Endowments Lif ife I Insu suran ance 3
CHARITABLE GIFT ANNUITIES CURRENT RATES 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 4
SAMPLE BENEFITS FOR A $20,000 CHARITABLE GIFT ANNUITY Annuity Annual Age Deduction Income Rate $4,821 60 4.4 $880 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 5
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 cont If ntrib ibute ap e appreciat iated ed p proper erty: a. a. Capita pital gain ain r reduced b. b. Gain sprea ead o out o over er l life expec pectancy 6
INCOME PAYOUT OPTIONS Inc Income f for o one 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 7
SECURITY Payments guaranteed by charitable organization Fixed Income for life Unaffected by market fluctuations TAX PAYMENTS 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 8
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 AGREEMENT Simple one-page agreement Irrevocable 9
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 or s r stock Gain ain p per ersonal al satis atisfac action 10
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. 11
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 HOW DO THE PAYMENTS WORK? 12
DEFERRED GIFT ANNUITY –CONT. 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 13
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 14
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 15
GIFT OF CASH – CONT. Mr Mr. and nd Mr Mrs. Mi Mille ller are re 78 78 and nd 79 79 ye years old old [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 16
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 of $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 ows: Capital G Gain P Por ortion $1 $1936. 936.02 02 Ordinary I Income Por ortion $678. $678.92 92 Non on- taxab able R Return n of Capit ital al $ $458. 458.14; a and a charitabl ble income me ta tax deducti tion of of $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 17
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 ost 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 own as as follo llows: Ca Capi pital Gai ain Po Portion $15 15,623 23.21 21 Ordinary In Income ome 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 18
Quest stion ons? 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 19
CATHOLIC COMMUNITY FOUNDATION: A TOOLKIT FOR GROWING PERMANENT MINISTRY FUNDS
CATHOLIC COMMUNITY FOUNDATION TOOLKIT 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 of Exam ample 21
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 22
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 23
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