The Campaign for St. John’s represents yet another opportunity in Stewardship to share the gifts that we have been given by our Lord. Please consider a gift that is proportionate to the gifts that God has blessed you with. Our campaign goal can be reached through the sacrifices of a great many parishioners.
The joy is in the giving! The personal satisfaction received from making a financial commitment to Stewardship is rewarding and the tax advantages may be substantial. The following gift methods are offered as possibilities when making your commitment.
The success of the campaign rests largely on pledges that are payable over three years. Pledges enable the donor to contribute a larger gift than would be possible to make in any one tax year.
With the recent economic downturn, many have found that their investment portfolios have declined in value. While this is always unfortunate, it does present an opportunity to charitable donors to make the most of their losses by donating depreciated securities so as to crystallize their losses, which can be used to offset certain past and future capital gains, and claim an official donation receipt for an immediate tax benefit.
When a donation of depreciated securities is made, the donor receives an official donation receipt in the amount of the fair market value of the gift, thus allowing the donor to claim a charitable tax credit immediately. Although the fair market value of the gift will naturally be lower than if the donor waited for the value of the securities to rise, a second benefit occurs on the donation of depreciated securities which may be advantageous to the donor — particularly if the donor has realized substantial capital gains in the past three years, or foresees such gains in the future. The donation of securities will trigger a capital loss, which may be used to offset both past and future capital gains. The Income Tax Act allows capital losses to be carried back up to three years, and to be carried forward indefinitely. Thus, by triggering an immediate loss on the donation of securities, the donor crystallizes a loss that will be available to reduce capital gains tax in the future.
On the other hand, if the securities have appreciated, the donor will receive the full value of the securities as the gift value and pay no capital gains tax. Please consult your personal tax advisor regarding the special rules for gifts of appreciated property.
Gifts to this campaign may provide the opportunity for a corporate match by an employer. Please contact the parish office for specific information to ensure that your gift will be eligible for a match.
Planned Gifts represent a special type of support that benefits you, the donor, and the parish. Often a Planned Gift allows you to maximize your contribution and provides you with specific income and estate tax advantages. Planned Gifts may also provide you with income during your lifetime. Here are some Planned Giving Opportunities:
IRA Charitable Rollover
This charitable option is available through the end of 2009. The law provides that an owner of a traditional or Roth IRA may distribute to a public charity, up to $100,000 a year without the distribution being included in taxable income, and the distribution will count toward the donor’s mandatory withdrawal amount.
To qualify for IRA rollover treatment the donor must instruct the IRA manager to transfer funds directly to a charity. (A withdrawal followed by a contribution still has to be reported as income.) The donor must be at least age 70-1/2.
Remember St. John the Evangelist Church in your will. This will provide your estate with a federal and estate tax advantage.
Charitable Lead Trusts
This works when the donor contributes securities or other appreciating assets to a charitable lead trust. Then, the trust makes annual payments to St. John the Evangelist Church for a period of time. When the trust terminates, the remaining principal is paid to the donor’s heirs.
Benefits: The present value of the income payments to St. John’s reduces your gift/estate tax. All appreciation that takes place in the trust goes tax-free to the donor’s heirs. The amount and term of the payments to St. John’s can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to the donor’s heirs. The donor has the satisfaction of making a significant gift to St. John’s now that reduces the taxes due on transfers to their heirs later.
St. John the Evangelist Church may be named as the principal beneficiary of your insurance policy or ownership of the policy may be transferred to the parish.
Memorial Societies offer a permanent recognition and acknowledgement of your love for a living relative or deceased family member. All donors will be publicly recognized. While we welcome gifts at all levels, please consider membership in any of the following four societies when determining your level of support:
Saint John’s Society
$10,000 and up
Saint Katharine Drexel Society
$5,000 — $9,999
Saint John Neumann Society
$3,000 — $4,999
Saint Francis Society
$1,800 — $2,999