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Tools for Giving

The Catholic Foundation facilitates both giving now (current gifts) and giving later (planned giving). Current Gifts can incorporate all your routine charitable giving each year and/or may involve managing a significant financial windfall or charitable investment in any given year for distribution over a number of years. Planned Giving creates a longer term charitable commitment from your estate through wills, trusts, and other estate plans.

Types of Gifts

Both current gifts and planned giving can be used to establish individual funds at The Catholic Foundation and/or, more simply, to contribute to the Foundation’s Unrestricted Endowment Fund.

The financial assets that can be used to establish a fund during your lifetime (a current gift) at The Catholic Foundation include:

• cash,
• appreciated securities,
• closely held stock,
• real property,
• tangible personal property,
• mineral interests,
• life insurance,
• mutual funds, and
• qualified retirement plan assets.

The financial assets, or planned gifts, that can be used to establish a fund at The Catholic Foundation include:

• bequests, 
• life estates,
• retirement plan beneficiary designations,
• charitable gift annuities,
• charitable lead trusts, and
• charitable remainder trusts.

Current Giving

Current Giving is comprised of gifts you make during the course of your lifetime to achieve your charitable and philanthropic goals.

Types of Funds

The following types of funds are available at The Catholic Foundation:

• The Unrestricted Fund

  A donor contributes directly to The Catholic Foundation’s Unrestricted Endowment Fund, a permanent source of income for funding to meet both immediate and emerging community needs. The Foundation’s Trustees determine where the gift will do the most good, both in the present and in the future.

  Gifts of all sizes are accepted; no minimum.
  Additional gifts may be made at any time, in any amount.
  The gift may be named in your honor, for your family, or it may by listed anonymously.

• Donor Advised Funds

  A Donor Advised Fund at The Catholic Foundation provides the optimal flexibility for charitable giving. It is a philanthropic tool not unlike the private or family foundation, but with significant tax advantages and considerably less complexity because it exists in the context of a community foundation. Contributions to the fund can be made at any time, in any amount; and, similarly, distributions from the fund can be made at any time, in any amount. The Donor Advised Fund can be especially useful when your financial circumstances might benefit from a significant charitable tax deduction in a given year while you might wish to extend your gifts to various charities over several years. It is also a useful tool for engaging future generations in the philanthropic enterprise, as you can name a second generation of advisors to the fund.

  Initial Gift minimum: $10,000.
  Additional gifts may be made at any time, in any amount.
  The fund may be recognized in the individual’s or the family name.

• Designated Funds

  A Designated Fund allows you to narrow the focus of your charitable giving by specifying the particular charity you want to support – a school, a hospital, or a parish food pantry, for example. (The possibility that the entity might cease to provide services at the expected level over time, or even cease to exist, is addressed by The Catholic Foundation’s ability to shift the benefits to another organization whose mission is closest to the original intended charity so that your charitable intent is honored for all time.)

  Initial Gift minimum: $10,000.
  Additional gifts may be made at any time, in any amount.
  The fund may be named in your honor, or in the name of the recipient charity. It may also be administered anonymously .

• Field of Interest Funds

  The Field of Interest Fund identifies a specific need – children, the elderly, health care, education, housing, or the arts, for example – and asks The Catholic Foundation to make the most effective grants possible to meet that need.

  Initial Gift minimum: $10,000.
  Additional gifts may be made at any time, in any amount.
  The fund may named or, should you prefer, listed anonymously.

• Scholarship Funds

  Scholarship funds are prime examples of the ease and efficiency afforded donors who invest their charitable dollars in a community foundation (such as The Catholic Foundation): once you give the funds and establish the terms of a scholarship (qualifying schools or students, for example), the Foundation takes on all management, reporting and distribution requirements, including the selection and monitoring of scholarship recipients, though current regulations allow for donors to have limited involvement in the selection process if they wish.

  Initial Gift minimum: $10,000.
  Additional gifts may be made at any time, in any amount.
  The Scholarship Fund is generally named for the donor but may also be named to honor any person or institution of the donor’s choosing.

• Memorial Funds

  A Memorial Fund established at The Catholic Foundation is a permanent, living memorial to a friend or family member and may be dedicated to a charitable interest reflected in his or her life.

  Initial Gift minimum: $10,000.
  Additional gifts may be made at any time, in any amount by the donor and by other individuals or groups.
  The fund is generally named in honor of the deceased.

• Support Organizations

  Support organizations are often established with a community foundation by individuals or families of considerable wealth as an alternative to private foundations. Such organizations enjoy a highly specialized tax status through a carefully-defined legal relationship with The Catholic Foundation which is reflected in the composition of an independent board of directors representing both the donor’s family and The Catholic Foundation, with The Catholic Foundation selecting the majority.

  Initial gift: Usually several million dollars.
  A support organization may be named for the donor or the donor’s family and will most often be known as “The Jones Family Foundation of The Catholic Foundation.” Anonymity can also be accommodated.

How to Give Now

It's easy to establish a fund at The Catholic Foundation.

Our professionals will guide you step-by-step through the process. It’s easy. It’s effective. And it’s meaningful – to you and to the community we serve. Here's how it works:

1. Determine how much you wish to invest in philanthropy.
2. Outline your personal philanthropic goals. You may want to provide support for a school or college, a parish or ministry, a cultural institution or a social services program; or for an idea, such as education or health care; or a gift to the Unrestricted Endowment Fund to help meet the ever-changing needs in our community. It’s entirely your choice.
3. Name the fund, and name the fund’s advisors.
4. Work with a Foundation Professional to establish investment and spending policies for the fund.
5. Make your gift to The Catholic Foundation. By doing so, you have translated your charitable intentions into a meaningful gift and a lasting legacy.

For more detailed information, click here.

To contact The Catholic Foundation to discuss establishing a fund, please email info@catholicfoundation.com  or call 972.661.9792.

Planned Giving

Planned Giving provides a way to fulfill your charitable and philanthropic intentions with gifts made to The Catholic Foundation from your estate after your death in accordance with specific plans you have made during the course of your lifetime.

Indeed, some of the greatest opportunities to arrange for your charitable contributions may occur at the same time you are making other major business, personal, and financial decisions, e.g., when you write or revise a will; sell a business or other major asset; plan for retirement; and/or receive an unexpected financial windfall.  Planned giving instruments can be simple, or sophisticated enough to provide for a complex array of commitments to families, friends, businesses, and charitable institutions.  Planned giving affords individuals of all income levels the opportunity to give something back to the community, as even a small percentage of any estate can be bequeathed to charity.

The Catholic Foundation welcomes the opportunity to work with you and your financial and legal advisors to execute your philanthropic vision.

Estate Planning Vehicles

The Catholic Foundation is equipped to translate any of the following planned giving vehicles into lasting legacies:

• Will or Living Trust

  A charitable bequest is one of the easiest ways to make a gift to the Foundation, and often, dramatic savings in estate taxes will result. A donor can designate a specific sum of money, a percentage of an estate, or a certain piece of property, or name the Foundation the “residuary beneficiary” of all or part of the estate after other bequests are fulfilled, or a “contingent beneficiary” in the event other named beneficiaries do not outlive you.

  Sample Bequest Wording
  Bequest wording can be as simple as:

  I give, devise and bequeath [a specific description of assets or a percentage of the residual estate] to The Catholic Foundation for uses and purposes of The Catholic Foundation.

  To specify a charitable use for the funds, simply add:
  

  The fund shall be used to support charitable projects of (1) [name a specific organization]; or (2) in the field of [name a specific area of charitable interest]; and/or (3) in [any specific geographical preference].

• Charitable Remainder Trusts

  Should you be contemplating a charitable gift of $100,000 or more from your estate, you may find the charitable remainder trust a particularly flexible way to achieve your philanthropic goals, while achieving benefits in terms of income tax deductions, reduced estate taxes, decreased capital gains taxes, increased income from assets, and the ability to provide for your spouse and/or heirs.

  There are two principle kinds of charitable remainder trusts:
  The Charitable Remainder Annuity Trust which allows you to ensure an income for life at the same time it provides for the community to benefit in perpetuity. The donor who establishes an Annuity Trust at The Catholic Foundation creates a permanent charitable fund and receives a fixed annual income for life, as does a surviving spouse. The donor also benefits from a significant income tax deduction that can be taken immediately and carried forward up to five additional years, and from reduced estate taxes.

  The Charitable Remainder Unitrust similarly provides for a charitable fund, an income for life for the donor and his or her surviving spouse, and the relevant tax advantages. Instead of a fixed annual income, however, a specific percentage of the trust assets (the minimum is 5 percent) is returned to the donor each year.

  At the end of the trust, any assets remaining in the charitable remainder trust can be used to establish a named charitable fund, or accrue to the Foundation’s Unrestricted Endowment Fund.

• Charitable Lead Trusts

  The charitable lead trust lets donors use their estates to provide for charity and, at the same time, preserve an inheritance for future generations. Part of your estate can be used to create a charitable lead trust, the income from which will accrue to a named charitable fund at the Foundation or to the Foundation’s Unrestricted Endowment Fund for a designated number of years.

  Because this transaction removes assets from the estate, it lowers estate taxes and can minimize generation skipping transfer taxes. The inheritance is preserved, however, because according to the terms of the trust, once the trust matures, it is terminated, and the assets are distributed to the beneficiaries. The community benefits from the income generated in the intervening years.

• The Charitable IRA

  The charitable IRA provides a very simple way to gift the community. All that’s required is that you name The Catholic Foundation as the beneficiary of your IRA or qualified retirement plan. Such a gift avoids the double taxation of IRA funds – first as part of the estate and then as income to the beneficiary – preserving more estate assets for good works in the community.

  Like other planned giving contributions, IRA proceeds can be used to establish a named fund or added to the Foundation’s Unrestricted Endowment Fund.

• The Charitable Gift Annuity

  This type of gift begins with a simple agreement between the donor and the Foundation: in exchange for a gift of assets, typically cash or stock, the Foundation promises to pay the donor a guaranteed lifetime income. The donor can begin receiving the income immediately or defer payments until reaching a certain age. The donor realizes significant tax advantages -- an immediate charitable tax deduction and consideration of a portion of the income payments as tax-free return of principal.

• Life Insurance Policies

  A life insurance policy can also be converted to a generous vehicle for philanthropy. The donor simply irrevocably assigns his or her insurance policy to The Catholic Foundation and names the Foundation as a beneficiary. Donors receive tax deductions equivalent to the policy’s cash surrender value or for the amount contributed (to the Foundation) to pay the premium, and can use the life insurance to establish a charitable fund of any kind.

• Life Estates

  Your primary residence or a second home is also, potentially, a charitable asset. A donor can gift a residence, realize a current income tax deduction, and continue to live in the home until his or her death. When the Foundation receives the home, it will sell the property and use the proceeds to support the charitable organizations or purposes the donor has identified, or add the funds to its Unrestricted Endowment Fund.

Investment Options

The Catholic Foundation is committed to prudent investment strategies that our trustees believe will lead to the optimal use of your fund(s) in the charitable community. We work with professional investment advisors to achieve a competitive return consistent with Board of Trustee policies regarding risk and return.  The specific investment asset allocation will depend upon your personal short-term and/or long-term charitable giving and/or income objectives.  Investment strategies are periodically reviewed and allocation adjustments may be made consistent with changing charitable and market conditions.  To ensure The Catholic Foundation staff understands each donor’s charitable intentions, we ask that donors choose between the following general investment policies:

1. Capital Appreciation
• Emphasis on growth to provide both current charitable funding and a greater level of charitable support in future years.  The fund’s goal is to provide long-term growth to fund balances and to provide protection against inflation.
• Asset allocation: 75 percent equities / 25 percent fixed income
• Spending rate: Currently 4.5 percent of a 5-year moving average (to be determined by the board on an annual basis)
2. Capital Preservation
• Emphasis on optimizing annual support.  The fund’s goal is to provide long-term growth in distributions approximately equal to long-term inflation.
• Asset allocation: 60 percent equities / 40 percent fixed income
• Spending rate: Currently 4.5 percent of a 5-year moving average (to be determined by the board of trustees on an annual basis.)

Investment Policy

The Catholic Foundation’s Investment Policy, as determined by the Board of Trustees, reflects its commitment to preserve and protect the corpus of all Unrestricted Assets while providing a sustainable flow of funds to support the mission of the Foundation.

The Investment Strategy targets a real rate of return (in excess of inflation) of 5 ½ percent over the Investment Time Horizon of at least 10 years.

Foundation assets may be invested in separately managed accounts, mutual funds, or individual securities, and are broadly diversified.  Permissible investments include domestic equities, international equities, and fixed income securities.  For domestic equities, international equities and fixed income securities, only investment advisers registered under or exempt from the Investment Advisors Act of 1940 whose performance is audited or audit-verifiable are eligible.

GiftLegacy

Our special GiftLegacy section is dedicated to meeting your specific needs for information regarding your personal philanthropy. Inside, you’ll find:

• Articles of interest on charitable giving ideas,
• Stories about how others have used giving plans available at The Catholic Foundation to fulfill their charitable intentions,
• An interactive, easy-to-use tool to create a personalized gift plan based on your interests and needs, and
• Up-to-date news on personal finance issues.

To access GiftLegacy, click here.