Legacy Gift Program
St. Patrick’s Legacy Gift Program provides an opportunity for interested supporters of the parish to ensure that our mission and vision will thrive for years to come.
The Legacy Gift Program consists of two funds – the Church of St. Patrick’s Long-Term Liquidity Fund and the Church of St. Patrick’s Permanent Endowment. Both are designed to provide steady, ongoing support to our parish community.
What is an Endowment? An endowment is a legal structure for managing a pool of financial assets that are donated to an institution , such as the parish, and are meant to be invested to grow the principal and provide additional income for future expenditures.
What is the Long-Term Liquidity Fund?
This fund has no legal restrictions to hold the funds permanently. As with the Permanent Endowment, the principal grows through prudent investing. The principal and interest can be accessed at any time, and in any amount at the discretion of the parish, understanding that funds may be subject to donor restrictions or intent.
What is a Permanent Endowment? A Permanent Endowment is a fund which is held in perpetuity with a trustee where annual distributions are paid to provide regular support for a beneficiary organization. The Church of St. Patrick’s Permanent Endowment is designed to provide stable, ongoing financial support to our parish community. The principal is legally protected and grows through prudent investing. A donation to the Permanent Endowment cannot be rescinded or withdrawn for any reason as it resides in the trustee’s portfolio on a permanent basis. Each year, a portion of the endowment’s earnings is available for distribution to our parish. Because this fund ensures proper stewardship far into the future, it is ideal for legacy gifts, such as bequests.
Who manages the funds and where is the money held? The Long-Term Liquidity Fund is custodies at Fidelity Investments. Management of the Fund will be in accordance with the investment policy established by the St. Patrick’s Finance Council.
The Church of St. Patrick’s Permanent Endowment is stewarded by the Catholic Community Foundation of Minnesota (CCF) in accordance with current laws and evolving best practices. CCF employs faith-based investment practices in line with the Socially Responsible Investment Guidelines of the US Conference of Catholic Bishops.
Are there tax benefits associated with contributing to St. Patrick’s Legacy Gift Program? Any questions regarding the tax deductibility of a contribution should be directed to your tax, legal, or financial advisor. In general:
Cash Contributions: You may deduct the full amount of your gift in the gifting year to offset up to 50% of your adjusted gross income (AGI), and you can carry any excess deduction forward for an additional five-year period after the year of contribution.
Appreciated Securities: Gifts of long-term appreciated securities, or stock, (i.e. securities that you have owned for more than one year) are deductible for the full fair market value on the date of the gift. You do not pay capital gains taxes on the appreciated portion of your gift.
With a gift of securities, you may deduct the full amount of your gift in the gifting year to offset up to 30% of your adjusted gross income (AGI). If your gift exceeds 30% of your AGI, you can carry any excess deduction forward and deduct up to the 30% limit in the five-year period after the year of contribution.
5 Ways to Support the Legacy Gift Program:
Cash or Stock – Give any amount, any time! Make checks out to the Church of St. Patrick. Indicate whether the gift is for the Long-Term Liquidity Fund, the Permanent Endowment, or some split between the two (e.g. 40% LT Liquidity, 60% Permanent). Gifts of stock are converted to cash, and value is added to our fund. By donating appreciated stock, there is a possibility of eliminating federal capital gains tax.
Bequest in Your Will or Estate Plan – You can include St. Patrick’s in your will or estate plan by designating a specific dollar amount or percentage of your estate as a gift. Contact your attorney or the Catholic Community Foundation for applicable language to include in your will.
Charitable Gift Annuity (CGA) – A CGA provides you with regular payments for the rest of your life. At the end of your life, the remaining balance of your annuity becomes a charitable gift to either of the 2 endowments. A minimum gift of $10,000 is required to establish a CGA at the Catholic Community Foundation of Minnesota.
Life Insurance or IRA Beneficiary Designations – You may name St. Patrick’s as a full or partial primary or contingent beneficiary on your life insurance policy. If you donate a policy, you may deduct its fair market value (as determined for tax purposes) or the cost basis, if lower. In the case of retirement plan assets, such as an employee plan, IRA, or tax-sheltered annuity, your beneficiaries will owe income tax on these assets. Donating even a percentage of your plan can provide a significant tax benefit.
Donation of Real Estate – Almost any type of real estate may be donated, including a personal residence, commercial building, vacation home, undeveloped land, or farmland. Depending on the type of gift, you may enjoy tax savings, lifetime income payments, and the removal of the property from your taxable estate.
For additional information please contact:
Rev. Allen Kuss
Parish Business Administrator