 | |  | | Khanh, Elisha and Kim Tran |
| | |
Note: The examples (rates) provided here are subject to change based on current market conditions.
TO SEE WHAT LIFETIME INCOME RATE YOU WOULD RECEIVE FROM A GIFT, CLICK ON OUR GIFT CALCULATOR.
Donor Advised Fund
Khanh and Kim's Story
Khanh and Kim Tran, both in their 30's, celebrated the birth of their first child, Elisha, by establishing a Donor Advised Fund to pass along their value of giving back. Although they could have started the fund with $5,000, the tax benefits of donating stock allowed them to double their initial investment. They used appreciated stock worth $10,000 to initially set up their family fund. "We hope that, with additional contributions, our fund will one day grow ten fold." Read Khanh and Kim's full story in our 2007 - 08 Annual Report.
Donor Advised Fund
Betty and Bob’s Story
Betty and Bob, both age 62, wanted to find a way to financially sustain their parish and a number of other charities well after they were gone. They also owned a piece of property up north that they bought for $5,000 in 1960. No one in the family used the land any more, so they donated the land worth $200,000 to set up their own CCF Donor Advised Fund.
They received a tax deduction for the gift. Also, by donating the land instead of selling it themselves, they saved $29,250 by avoiding capital gains taxes of 15%. Now they enjoy making grant recommendations and know that their charities will continue to benefit in future generations thanks to their CCF Donor Advised Fund.
Charitable Gift Annuity
Mary’s Story
Mary, age 70, irrevocably transfers a $10,000 gift of cash to the Catholic Community Foundation in return for a guaranteed life income annuity. The Foundation is able to guarantee her a 5.7% annuity payment (rates vary based on the age of the annuitant) or $570 ($10,000 x 5.7%) annually for her lifetime, 67% of which is tax-free. At the same time, Mary is eligible for a $3,909 federal income tax deduction (tax deductible amount is subject to change based on IRS policy). She has designated that upon her death, the remainder of her gift annuity arrangement goes directly to her parish.
Deferred Charitable Gift Annuity
Mike and Mary’s Story
Like many couples in their 50’s, Mike and Mary (age 58 and 60 respectively) are planning their retirement. They recently inherited $50,000 and wanted to make a charitable gift to support the Catholic Community Foundation.
Choosing a Deferred Charitable Gift Annuity as a vehicle for their gift, they are assured of a lifetime annuity of 9.3% of their gift – $4,650 per year – when they are ready to retire in 10 years. Together with a current year tax deduction of $12,304 (using a 4% IRS rate) some 38% of the annual income is tax-free!
Charitable Remainder Unitrust
Henry and Martha’s Story
Henry, age 66, and Martha, age 59, have accumulated shares of publicly traded stock that are presently valued at $300,000. The shares were purchased 30 years ago at a cost of $6,000.
Henry and Martha are concerned about the tax they would have to pay should they sell their stock with a capital gain of $294,000 ($300,000 minus $6,000). Because they desire to support several Catholic and civic causes, they irrevocably transfer the highly appreciated stock into a charitable remainder trust, in exchange for a 7% annual income payout rate for the rest of their lives.
The initial gift will be invested through the trust and revalued annually. During the first year, their annual income will be $21,000 ($300,000 x 7%). Not only was the tax on the $294,000 capital gains completely avoided, but the couple was also eligible for a federal income tax deduction of $60,756 (using a 4% IRS rate).
Henry and Martha designated that upon their deaths, the remainder of their trust arrangement be assigned so that 50% would go to their parish endowment fund in the Foundation and 50% would be distributed to their other favorite charities whose goals are not antithetical to the teachings of the Roman Catholic Church.
| 
