Planned Giving

Bequests by will to the church are exempt from federal and most state inheritance taxes. A gift by will reduces the total estate value by the amount of the planned gift, thus reducing overall estate tax.

By your will (which you may change by a codicil) or your revocable trust (which you may change by an amendment), you can make St. Paul’s the beneficiary of cash, securities, and/or other property. (If you plan to give property, please contact our Director of Development and Planned Giving.) You may designate a specific amount or a percentage of your estate to be given, or you may make St. Paul’s a residual beneficiary of your will or trust (that is, a recipient of some part of the balance after payment of specific bequests, expenses, and taxes).

As you review your testamentary plans, here are some language samples for your use.

Specific Amount for General Purposes
“I hereby give, devise, and bequeath to St. Paul’s Episcopal Church in the City of Akron, Ohio, the sum of $______ to be used at its discretion for the general objectives and purposes of said St. Paul’s.”

Percentage Amount for General Purposes
“I hereby give, devise, and bequeath to St. Paul’s Episcopal Church in the City of Akron, Ohio, _____________ percent (____%) of my total estate, determined as of the date of my death, to be used at its discretion for the general objectives and purposes of said St. Paul’s.”

While unrestricted gifts are most helpful, larger gifts can be designated to support a very specific purpose.

These are only samples for your consideration. Your legal counsel can help you to refine the bequest language to suit your specific wishes for St. Paul’s. If you do decide to include St. Paul’s in your will, it would be very helpful for us to have a copy of that portion of your will for our records.

The simplest, most tax-efficient planned gift of all is made from a tax-deferred retirement plan, 401(k) plans, 403 (b) plans, and individual retirement accounts (IRAs). Left as part of an estate, tax-deferred assets will be subject to income tax and possibly other forms of taxation. However, naming St. Paul’s as a beneficiary of a retirement plan allows the gift to pass directly to the church free of any taxes.

This is also one of the easiest gifts to put in place. In most instances, one can simply go to the web site of the trustee or custodian of the plan and change the beneficiary designation. Like a bequest from a will or trust, the gift may be a specific dollar amount or a percentage of the plan assets.  If you do decide to include name St. Paul’s as a retirement plan beneficiary, it would be very helpful for us to have the name of the retirement plan.

Gifts of life insurance to St. Paul’s allow you to receive charitable tax deductions while making a larger gift to the church than might otherwise be possible for you. Using an existing life insurance policy is a quick and convenient way to make a planned gift commitment. Ask your insurance company for a beneficiary designation form, and name "St. Paul’s Episcopal Church, Akron Ohio" as a beneficiary.  If you do decide to include name St. Paul’s as an insurance policy beneficiary, it would be very helpful for us to have the name of the insurance company.

• Charitable Gift Annuity
  With a Charitable Gift Annuity you make a gift of cash or marketable securities (minimum $5,000) in return for guaranteed fixed income based on your age. The amount of the payout is not affected by market fluctuations. You receive an income tax and gift tax charitable deduction for your gift in the year that you establish the annuity. Some portion of the annuity gets taxed as ordinary income, and if the gift was funded with appreciated property, some proportion will be subject to capital gains tax which can generally be pro-rated over your life expectancy. A portion of the income received may be free of federal income tax.
   
• Charitable Remainder Trust
  A Charitable Remainder Trust, using many different asset types, enables you to make a significant gift of $100,000 or more and to retain the right to receive income during your lifetime and/or the lifetime of your designated beneficiaries. The amount of payments received during the pay-out period depends on how you structure the trust. Your gift to a Charitable Remainder Trust provides an immediate income tax and gift tax charitable deduction. Income payments typically will be received and taxed to the beneficiary in part as ordinary income and in part as capital gain.
  
  Pooled income gifts, charitable gift annuities, and charitable remainder trusts are administered in partnership with the Episcopal Church Foundation.
   

All of the above methods of giving can also be used for gifts to St. Paul’s Endowment, where they will support the church in perpetuity.

What is the Endowment Foundation?
The Endowment is a Fund which provides an income stream to support all aspects of St. Paul’s mission and ministry in perpetuity. The income stream supports five general areas, though larger gifts can be designated for special projects. The areas are Clergy, Education, Missions, Music, Property, and The General Endowment Fund, the last of which is currently the most needful. Gifts are prudently invested and managed, and distributions carefully follow the donor’s intent.