Customizing your gift to meet your unique needs
Many people don't realize that they can have the satisfaction of making a major gift to the Anglican Church now and see the gift in action long before a typical bequest donation. One donor said, "Its like having your cake and eating it too." Making a major gift now can give you a significant and immediate tax benefit, yet you can continue to use and enjoy your gift of property for the balance of your life!
How can this be you ask?
In making a gift of residual interest in property the donor transfers the property irrevocably to the Anglican Church. However, as the donor, you retain the use of the property for your lifetime, and, if you wish, for as long as your spouse lives as well.
Giving your Principal Residence to the Church
Diane Reed, 72, owns a home valued at $200,000. She would like to live in it for many more years, but would like the Diocese of Niagara to have the home when she dies. After looking at many options and satisfying herself that this type of gift was right for her individual circumstances, Diane decides to give the diocese the home now while retaining a life interest for herself.
She receives a donation receipt for $85,421 which, assuming a 48% combined tax credit, will reduce her income taxes by $41,002 over the next five years. (The portion of the donation receipt which she may claim in any given year is limited to 75 percent of her income. She has the gift year and five additional years to use the full amount.)
Because Diane's house is her principal residence, she realizes no taxable gain at the time of the transfer, no matter how much the value has gone up since she bought it. While she lives in the house, Diane will be responsible for maintenance and other expenses specified in her gift agreement with the Anglican diocese. If it becomes necessary for Diane to give up the house prior to her death she has several options open to her. She can rent the house and keep the income from that, give her life interest to the diocese early and get an additional donation receipt, or she and the church can jointly sell their respective interests in the property
Assessing the Benefits to the Donor
In this example, Diane is able to make a very significant gift to the church and obtain a very large tax benefit. Diane is able to see her gift at work in the ministry of the church which brings her great personal satisfaction. The disadvantage to the donor is that the gift is irrevocable and you lose some (but not total) control of the asset. These gifts work best for donors 75 years or older.
Specific issues such as appraisal, capital gains (except on a principal residence), upkeep and insurance need to be carefully considered.
As this series of Planned Giving booklets illustrates,
charitable giving strategies can be simple or very complex. Your own,
personal circumstances may further complicate the issue. In some cases
you will receive the most benefit and bless the church by combining
planned giving strategies.
Your Gift can Truly Make an Impact on Ministry...
So Many Worthy Ministries...
|A Theology for Planned Giving|
|Thinking of Making a Planned Gift?|
|Anglican Church Ministries Foundation|
|Types of Gift|
|Wills & Bequests|
|Gift Plus Annuities|
|Gifts of Residual Interest|
|Diocesan Planned Giving Staff|
|Parish Planned Giving Coordinators|
||Planned Giving Team Area|
|Planned Giving Home|
|Diocese of Niagara Home|