A gift of cash is the most common and convenient way to give to The Catholic Foundation of Utah. Gifts may be made outright or pledged over a period of up to five years. Donors who itemize tax deductions are able to fully deduct cash gifts up to 50% of their adjusted gross income. Any excess may be carried forward for up to five additional years. Donors may designate their gift for a specific use by enclosing a brief note when making the gift. Checks should be made payable to The Catholic Foundation of Utah, or a gift can be charged through MasterCard, Visa or American Express.
A gift of appreciated securities such as stocks, mutual funds (see section below) and bonds can provide attractive benefits. An outright gift of long-term appreciated securities (securities held for more than a year) avoids capital gains taxes and, in most cases, the donor may claim a charitable income tax deduction equal to the market value of the securities. For gifts of appreciated securities, a gift is fully deductible up to 30% of the donor’s adjusted gross income and, like gifts of cash, may be carried forward for five additional years.
To donate stock, download this form The Catholic Foundation of Utah Stock Form 2024
Closely held corporations are corporations whose stock is owned by family members and/or by business associates. The stock is private in that it is not publicly traded and, in most cases, there are restrictions on the transfer of the stock to third parties. With an outright gift of closely held stock, the donor typically transfers the stock to The Catholic Foundation of Utah. To determine value, the donor has the stock appraised and obtains a charitable income tax deduction equal to the appraised value of the stock. The appraisal must be conducted by an appraiser who is knowledgeable in establishing the value of closely held stock. The Catholic Foundation of Utah then redeems the stock to the corporation or one of its trustees and receives a check for the redemption price.
Gifts can be made from mutual fund accounts to The Catholic Foundation of Utah. The donor must write a letter of instruction stating the number of shares being given to the Foundation, the timing of the gift, the name of the account from which the shares are coming and a contact name at The Catholic Foundation of Utah Office. This process may take several weeks to complete. Gifts of mutual fund shares are deductible up to 30% of the donor’s adjusted gross income and allow the donor to avoid capital gains taxes.
A donor can make a gift to The Catholic Foundation of Utah and receive immediate financial benefits, including a lifetime stream of income and a charitable income tax deduction. There are several gift vehicles to choose from, such as charitable gift annuities, deferred gift annuities, and charitable remainder trusts. Life income gifts may be designated to benefit any program, ministry, service or organization within the Catholic Church in Utah at The Catholic Foundation of Utah.
Summary of Financial Benefits:
In determining which vehicle is most appropriate, the following questions should be answered:
Charitable Gift Annuity
A charitable gift annuity is a contract between the donor and The Catholic Foundation of Utah that provides advantages for both. Charitable gift annuities are a solid investment in The Catholic Foundation of Utah’s future as they form a valuable part of our growing endowment. Charitable gift annuities may be funded with cash, securities or property. The minimum gift amount to create a charitable gift annuity is $5,000. The payout rate on a charitable gift annuity is based on the age of the donor at the time the gift is made. The rates are suggested by the American Council on Gift Annuities (ACGA), a volunteer organization comprised of representatives from charitable and for-profit organizations. The Catholic Foundation of Utah follows the rates suggested by the ACGA.
Summary of Financial Benefits:
|
Age |
Payout |
Annual |
Tax |
|
60
|
5.7%
|
$570
|
$2,420
|
|
65
|
6.0%
|
$600
|
$2,991
|
|
70
|
6.5%
|
$650
|
$3,498
|
|
75
|
7.1%
|
$710
|
$4,081
|
|
80
|
8.0%
|
$800
|
$4,641
|
|
85
|
9.5%
|
$950
|
$5,058
|
|
90
|
11.3%
|
$1,130
|
$5,586
|
A deferred charitable gift annuity is similar to a charitable gift annuity except that the payments are deferred to a future date. A donor may defer payments to years when income is needed more, such as retirement. The donor obtains a substantial charitable income tax deduction in the year the gift is made. Because payments are deferred, allowing the principal to grow, the donor enjoys a high payout rate later. A deferred gift annuity is an excellent way to make a gift and receive a charitable income tax deduction while providing income for the future. Like the charitable gift annuity, the minimum gift amount is $5,000.
Summary of Financial Benefits:
|
Age |
Payout |
Annual |
Tax |
|
60
|
5.7%
|
$570
|
$2,420
|
|
65
|
6.0%
|
$600
|
$2,991
|
|
70
|
6.5%
|
$650
|
$3,498
|
|
75
|
7.1%
|
$710
|
$4,081
|
|
80
|
8.0%
|
$800
|
$4,641
|
|
85
|
9.5%
|
$950
|
$5,058
|
|
90
|
11.3%
|
$1,130
|
$5,586
|
*Payout Rates are rates recommended by the American Council on Gift Annuities as of July 1, 2003.
A charitable remainder trust is a personal management plan that provides both a lifetime income and a charitable income tax deduction to the donor. The donor selects the payout rate, usually between 5% and 7%, which gives the donor, and perhaps the donor's spouse or other beneficiary, an income every year for life. The higher the payout rate, the lower the charitable income tax deduction. If the trust is funded with appreciated securities, capital gains taxes are avoided. The trust may be designated to benefit a particular beneficiary, organization, program or ministry within the Catholic Church in Utah or it may be unrestricted. There are two types of charitable remainder trusts: the annuity trust and the unitrust. The charitable remainder annuity trust pays a fixed, guaranteed dollar amount, regardless of the trust's investment performance. The income rate is determined at the time the trust is funded. The annuity trust is best for donors who seek a regular, fixed income and prefer to have the satisfaction of knowing the exact amount of the payment in advance. No additional gifts may be added to an annuity trust. The charitable remainder unitrust pays the donor a predetermined percentage of the fair market value of the trust's assets as re-valued annually. If the trust's assets increase, the donor receives a larger payment, providing a hedge against inflation. Additional contributions may be made to a unitrust.
Summary of Financial Benefits:
|
Charitable Remainder Unitrust |
|||
|
Age |
5.0%
|
6.0%
|
7.0%
|
|
55
|
.33634
|
.27894
|
.23379
|
|
60
|
.39839
|
.33962
|
.29190
|
|
65
|
.46485
|
.40628
|
.35727
|
|
70
|
.53594
|
.47952
|
.43094
|
|
75
|
.60840
|
.55599
|
.50963
|
|
80
|
.68154
|
.63507
|
.592292
|
|
85
|
.74996
|
.71063
|
.67417
|
Charitable lead trusts are the reverse of charitable remainder trusts in that a stream of income is first paid to The Catholic Foundation of Utah for a number of years (based on a term or a lifetime), after which the remainder goes back to the donor or passes to another non-charitable beneficiary designated by the donor. The stream of income that flows to The Catholic Foundation of Utah is either a fixed amount or a percentage of the value of the trust property, as revalued annually. A charitable lead trust is a fully taxable trust; the trust pays both income and capital gains taxes, unlike the charitable remainder trust that is tax-exempt. A donor is entitled to a charitable income tax deduction if the donor continues to be taxed on the trust income. Many donors use a charitable lead trust to reduce or eliminate the gift tax cost of transferring wealth to children or grandchildren and to give appreciated property to heirs without further gift or estate tax liability. A charitable lead trust can be established during a donor’s lifetime or by a provision in the donor’s will.
Donors can make a gift of commercial or residential real estate to The Catholic Foundation of Utah and receive substantial financial benefits. Property may be given outright to support the purposes of The Catholic Foundation of Utah, and the donor can take a charitable income tax deduction based on the appraised value of the property. Or, the donor may use a home or land that is no longer wanted or needed to fund a life income gift. As with other types of gifts, a donor may designate a gift of real estate to a particular beneficiary within the Catholic Church in Utah at The Catholic Foundation of Utah. Another option for a gift of real estate - a retained life estate - is described below.
Through a retained life estate, a donor makes a gift of a personal residence to The Catholic Foundation of Utah and retains the right to live in the home for life. Making a gift of property while retaining a life estate provides the donor with a charitable income tax deduction based on the value of the property, the age of the donor and his/her life expectancy. For a gift of appreciated property, a donor may take a charitable income tax deduction for up to 30% of the donor’s adjusted gross income. The donor is responsible for maintenance costs, insurance and real estate taxes. To substantiate the value of the property, the donor must obtain an appraisal from an independent qualified appraiser. The cost of the appraisal is borne by the donor and is a miscellaneous tax deduction.
Making a gift of a qualified retirement plan asset such as a 401(K), 403(b), IRA, Keogh or pension plan is another way to benefit The Catholic Foundation of Utah and receive significant tax savings. Retirement plan assets are often subject to extremely high estate taxes, and the income is fully taxable when received by an individual beneficiary. By naming The Catholic Foundation of Utah as the beneficiary of a retirement plan, the donor maintains complete control over the assets during his/her lifetime, but at the donor’s death the plan passes to The Catholic Foundation of Utah free of estate taxes. When creating an estate plan, donors may wish to consider leaving his/her heirs other assets, such as cash and securities, which are not as highly taxed.
Donors can use life insurance to make a gift to The Catholic Foundation of Utah by naming The Catholic Foundation of Utah as the owner and beneficiary of a life insurance policy. A donor receives a charitable income tax deduction based on the lesser of the policy’s fair market value or the net premiums paid. Donors may also wish to make gifts of paid-up policies, resulting in a charitable income tax deduction for the policy’s cash surrender value. An important use of life insurance is its ability to replace the value of an asset that has been given to The Catholic Foundation of Utah. A donor can use the tax savings produced by the charitable income tax deduction to purchase and pay premiums on life insurance policies whose proceeds equal the value of the gifted property. This arrangement can serve to protect the interests of family members.
Donors can make gifts of tangible personal property, such as art, books, antiques and collections to The Catholic Foundation of Utah. A donor’s charitable income tax deduction is based on the “related use” of the property, which means that if the property is related to the Foundation’s exempt purposes the donor can take a charitable income tax deduction for the full fair market value of the property, up to 30% of the donor’s adjusted gross income. If the property is unrelated to the exempt purposes of the charity, the donor can deduct the cost basis of the property. All gifts of tangible personal property must first be approved and accepted by The Catholic Foundation of Utah.
Endowed Funds
An individual or family can create an endowed fund, which provides a permanent bond between the donor and The Catholic Foundation of Utah. Through an endowed fund the donor transfers assets to The Catholic Foundation of Utah, which are carefully managed and preserved in perpetuity to provide annual income. Endowed funds support programs, ministries, services and organizations within the Catholic Church in Utah. There may be no finer way to honor the memory of a loved one than to establish a permanent fund in his or her name. A named memorial fund becomes a lasting symbol of the bond between The Catholic Foundation of Utah and those who are permanently honored. We are happy to work with donors to build an endowed fund over the years; additional gifts may be added to an endowed fund at any time. People often choose to make annual gifts to the fund or make gifts to mark a special occasion such as a birthday, anniversary or holiday. Creating a bequest or making a planned gift are other ways to augment an endowed fund. Donors may specify what purposes the endowed fund is to serve and how the fund is to be administered, all within the framework of The Catholic Foundation of Utah policy. The Catholic Foundation of Utah carefully preserves the principal of the endowed fund (gifts and successive gifts) as an investment, while awarding some income each year for the purpose specified. A minimum of $10,000 is required to establish an endowed fund at The Catholic Foundation of Utah.
Current Use and Term Funds
Two other types of funds—the current use fund and the term fund—also provide an opportunity to create and name a fund. These types of funds differ from endowed funds in that both the income and principal of the fund are available for immediate use. A current use fund created at The Catholic Foundation of Utah can be used to fund a particular program, project, ministry or organization and it provides the most flexibility for spending. A current use fund can be funded with an outright gift or through a planned gift or bequest. The minimum amount to establish a current use fund is $10,000. Additional gifts may be added at any time. A term fund is established for a set number of years. During that time, both the income and principal may be used to benefit work being done at The Catholic Foundation of Utah. The minimum amount necessary to establish a term fund varies depending on the length of the term and the project the fund is intended to support. A term fund can be funded with an outright gift or through a planned gift or bequest and additional gifts may be added at any time.
Through a donor advised fund, a donor can create a freestanding fund that provides the donor and his/her family with various controls over the fund and many tax benefits. The minimum required to establish a donor advised fund is $25,000.
An estate gift provides significant support to The Catholic Foundation of Utah. The gift can be made through a will or a trust, and both vehicles enable assets to be distributed to individuals and nonprofit organizations in the amounts or proportions indicated. An estate gift provides the following benefits:
The opportunity to make a major gift while preserving assets during life
Reduction in federal estate taxes
The opportunity to designate the gift to a specific program, ministry, service or organization served by The Catholic Foundation of UtahAll assets, including cash, securities, real estate and tangible personal property, may be transferred to The Catholic Foundation of Utah through a donor’s estate.
Membership in the Legacy Leadership Society
Estate gifts can be made in the following ways:
Specific Bequest
The Catholic Foundation of Utah receives a specific dollar amount, a specific piece of property or a stated percentage of the estate. This is one of the most popular forms of bequests.
Residuary Bequest
The Catholic Foundation of Utah will receive all or a stated percentage of an estate after distribution of specific bequests and payment of debts, taxes and expenses.
Contingent Bequest
The Catholic Foundation of Utah will receive part or all of the estate under certain specified circumstances. We can provide sample language that will assist donors and their attorneys in creating a bequest to The Catholic Foundation of Utah.
Memorial/Honorarium Gifts
One of the most meaningful ways to memorialize a loved one or pay tribute to a special person or caregiver is by making a gift in his/her name to The Catholic Foundation of Utah. Gifts of any amount can be designated for a specific specialty or program. The Foundation Office can help establish a memorial for a family member or loved one who has recently passed away. We will notify a family representative when gifts are received, as well as individually thank those who have given. Please contact us if we may be of assistance.
Matching Gifts
When making a gift to The Catholic Foundation of Utah, some donors may be able to maximize their giving by taking advantage of an employer’s corporate matching gift program. Many corporations have matching gift programs, which allow employees to direct corporate gift money to beneficiary organizations served by The Catholic Foundation of Utah. Donors should contact their employer’s human resources or benefits office to learn if there is a matching gift program. Donors may also qualify under the matching gift program of a company from which they retired, at which their spouse works, or where they serve as a member of the board.
Legacy Leadership Society
The Legacy Leadership Society was established to recognize donors for supporting The Catholic Foundation of Utah through planned gifts, including bequests, charitable gift annuities, charitable remainder trusts, lead trusts, and endowed and other types of funds. Making a life income gift or a bequest is a way for donors to plan for The Catholic Foundation of Utah’s future along with their own. We look forward to welcoming new members to the Legacy Leadership Society; benefits include special mailings and invitations to special events.
The Catholic Foundation of Utah Office
The Catholic Foundation of Utah
27 C Street
Salt Lake City, UT 84103
801.456.9306
