A Permanent
Legacy
Planned Giving Guide
EMMANUEL EPISCOPAL CHURCH
The Lord is
“The Lord is faithful in all his words, and gracious in all his deeds.” — Psalm 145:13
Contents Our Stewardship ����������������������������
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General Information ���������������������
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Immediate Gifts �����������������������������
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Immediate or Deferred Gifts ��������������������������������
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Deferred Gifts ��������������������������������
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Life Income Gifts ��������������������������
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Other Forms of Giving ����������������
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Our Mission ������������������������������������
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A Permanent Legacy OUR STEWARDSHIP Our annual stewardship pledge is a yearly decision regarding our priorities and values, and our response to God’s presence in our lives. Similarly, a planned gift for Emmanuel is an opportunity to make a more significant statement about our belief in God, our gratitude for the Holy Spirit’s presence in our lives, and perhaps a final and more significant gift — by which God can continue to enliven the mission and ministry of Emmanuel Episcopal Church.
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EMMANUEL EPISCOPAL CHURCH
GENERAL INFORMATION
INTRODUCTION Gift planning is sometimes called the “How” of giving. It naturally follows the “Why”—the motivation or reason you want to give in the first place. As Episcopalians we all have our own personal reasons for wanting to make a planned gift to support the programs and ministries that are meaningful to us. The information in this brochure describes the different ways you can accomplish this through immediate, deferred or life income gifts. It is provided to give you a basic understanding of planned giving options, not as a complete reference for all the options available. Be sure to seek the advice of properly qualified legal, tax, and financial advisors. How can you support the Emmanuel you love while still caring for yourself and your family? Through planned giving you can achieve both your family stewardship and your estate planning goals while also supporting Emmanuel into the future. Planned Giving can take many different forms depending on your objectives. And without necessarily contributing money today, supporting Emmanuel into the future can be easy and rewarding.
Be assured that you don’t have to know it all! You just need to know whom to call: Emmanuel Episcopal Church Finance Committee members or the Petoskey-Harbor Springs Area Community Foundation can help you get started.
PLANNED GIVING
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IMMEDIATE GIFTS CASH
REAL ESTATE
Gifts of cash are routinely used to pay pledges and make special (capital) gifts.
You may have a second home. Your primary residence may no longer be practical. Giving real estate to the church is a time-honored way of making a substantial gift with an asset, perhaps highly appreciated, that might otherwise be underutilized.
APPRECIATED SECURITIES Many donors use stocks, bonds, or mutual funds to make gifts. If they have increased in value since you obtained them, there can be significant tax advantages: a.
y our income tax deduction is usually based on the full market value of the securities on the date of the transfer.
b.
y ou can usually avoid paying capital gains taxes that would have been due if securities had been sold.
If you wish to donate securities that have diminished in value since you obtained them, it may be wiser to sell the stock, claim the capital loss as a tax deduction, and donate the resulting cash.
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EMMANUEL EPISCOPAL CHURCH
PERSONAL PROPERTY You may donate assets such as jewelry, automobiles, paintings, and antiques as immediate gifts or they can be used to fund life income gifts. As with real estate, you will need to pay for a bonafide appraisal of the item by a qualified appraiser.
IMMEDIATE OR DEFERRED GIFTS RETIREMENT ASSETS Retirement funds are an an asset often overlooked as a source of charitable gifts. Giving from an IRA, a 401K, or 403B plan can provide you with important tax advantages. Since the money that has accumulated in these plans has never been taxed, the IRS levies income taxes on any distribution, unless that distribution is to a qualified charity. After you die, your retirement fund could be subject to both income taxes and estate taxes, considerably diminishing its value before being passed on to your heirs. By naming Emmanuel Episcopal Church as beneficiary of some or all of your remaining retirement fund assets, you can avoid this pitfall, while making a significant contribution to the future of Emmanuel.
GIFTS OF LIFE INSURANCE You may find that you have some life insurance that you no longer need. “Whole” or “universal” life insurance has cash value and can be donated to Emmanuel. You would receive a tax deduction for the replacement cost of the policy at the time of your donation, not the face value of the life insurance. Ultimately, though, the church would receive the net face value of your policy. If the policy requires continuing premium payments, you can continue paying those premiums. You may also simply designate Emmanuel as a full or partial beneficiary, while retaining ownership of your policy.
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DEFERRED GIFTS WILLS AND BEQUESTS Emmanuel Episcopal Church has had a significant impact on many of our lives. Many of us grew, developed, and were nurtured in our faith by the church’s witness and work. It is only natural that we would want to help continue its work by providing a gift through our estate planning. A bequest through a will or trust is the simplest and most common planned gift. It can be an outright monetary bequest, a percentage of your estate, a percentage of the “rest, residue, and remainder” of your estate after a number of other bequests have been fulfilled, or a specific asset such as personal or real property. It could also be a contingent bequest, to be exercised only if some other intention is unable to be fulfilled (such as a named heir predeceasing you). You can make charitable bequests for general purposes or to support specific programs.
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EMMANUEL EPISCOPAL CHURCH
Your bequest to support Emmanuel Episcopal Church is a living tribute to your intention to support the church’s work by giving now, or in the future, to create a permanent legacy. The Emmanuel Episcopal Church Endowment Fund at the Petoskey-Harbor Springs Area Community Foundation can be designated as a recipient or beneficiary of any of your planned giving.
LIFE INCOME GIFTS A life income gift enables you to make the gift but keep the income for the rest of your life. Growing out of the 1969 tax act, life income gifts became a way for people to make substantial charitable gifts from their assets, yet still keep—and live on— the income. Several types of life income gifts work the same way: assets are transferred to a charity or to a trust that will eventually benefit a charity. The charity invests the assets and produces income, which is paid to the donor and/or spouse, or another person if desired. The income can be paid for the duration of their lives or, in some cases, for a specified number of years. Creating a life income gift entitles you to a tax deduction for what’s called the “Present Value of the Remainder Interest.” This is the amount that the charity, in this case, Emmanuel Episcopal Church, is expected to receive when you pass away, discounted for present-dollar value.
CHARITABLE GIFT ANNUITIES This is a popular life income gift vehicle if you want guaranteed income for life. You receive a tax deduction for the present value of the remainder interest. You receive the same annuity payment each quarter for the rest of your life, regardless of interest rates, investment strategy, or economic trends. When the income beneficiary dies, the remaining funds in the account can be released directly to the church or to our endowment fund.
CHARITABLE REMAINDER TRUSTS Assets are transferred to fund the trust, and you receive a tax deduction equivalent to the present value of the remainder interest. Trust income amounts are paid to the income beneficiaries, in an amount equal to the unitrust or annuity amount that is determined when the trust is set up. At the death of the last income beneficiary, the trustee releases the funds to the church, as named in the trust.
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OTHER FORMS OF GIVING CHARITABLE LEAD TRUSTS You could also establish a charitable lead trust. A lead trust is constructed for a speciďŹ ed term of years and pays a unitrust or annuity amount from the assets to the church. At the end of the term, the church returns the assets (which might well have grown substantially) to you or your heirs.
GIFT OF REAL ESTATE WITH LIFE ESTATE RESERVED If you have decided to leave your home or other real estate to the church in your will, through a life estate gift you can make the gift now, realize an immediate substantial income tax deduction, yet continue to live in your home for as long as you wish. The property is appraised to determine a current value, then deeded to the church. You are entitled to a tax deduction calculated on the basis of your life expectancy. In life estate arrangements, you continue to be responsible for real estate taxes, insurance, maintenance, and upkeep.
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HOW THE PETOSKEYHARBOR SPRINGS AREA COMMUNITY FOUNDATION CAN HELP If you would like to discuss your various gift options or would like to see a personalized illustration of what your gift would look like, showing payments, the charitable deduction, and tax benefits, please call the Petoskey-Harbor Springs Area Community Foundation at (231) 348-5820.
OUR MISSION STATEMENT
We worship God, and follow Jesus Christ, learning and growing together in the Holy Spirit to serve in the world. We will love and welcome ALL!
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EMM ANUEL God With Us
OUR CORE VALUES: Worship: We value diverse and enriching worship to thank and glorify God through our Episcopal liturgy and sacraments. We value Episcopal tradition and follow the Book of Common Prayer.
C hristian Spiritual Growth: We value developing a deeper
relationship with Jesus Christ and seek pathways that guide and equip us to share the love of Christ in the world. We value the Old and New Testaments and recognize their importance to creating a meaningful relationship with God.
I nclusiveness: We value our neighbors as ourselves and strive to see Jesus Christ in all people. We value people of all ages, backgrounds and invite them to join us in worship and ministry; setting a place at the table of Christ’s communion, and to the full life and leadership of Emmanuel.
C hurch Family: We value the importance of building a church
family, sharing friendship, spending time together, and caring for every person who enters our doors. We embrace projects and events that foster intergenerational experiences.
Youth: We value children believing they are vital to parish life and
are included in every aspect of our mission and vision. We value creative and age appropriate spiritual education that centers on the teachings of Jesus Christ, learning the Episcopal faith and giving to those in need.
S erve: We value and are grateful for the gifts given to us by God to
fulfill His purpose to respond to needs of others. We strive to make a difference in lives of those near to us through pastoral care and reach out to people in the community and world through outreach programs. We use our facility in ways that further our mission and vision and involve the community.
Form and Grow: We value working and praying together in small groups building relationships and participating meaningfully in the ministries of Emmanuel. We also value the importance of accountability and assessing the outcomes of our actions.
Emmanuel Episcopal Church 1020 East Mitchell Street, Petoskey, MI 49770