BequestsGiving is a very important part of the life of a person devoted to Jesus Christ. More and more are responding to the idea of giving a gift that forever perpetuates our faith. A bequest is a concrete way to express gratitude to God for a lifetime of blessings. The gift you give also establishes a lasting legacy of love for others by enabling Seamens Church Institute to continue the preservation and expansion of our ministry in serving mariners.
Simple bequests can easily be included in a person's will. If a will has already been written, a codicil allows for a new provision to be added easily. The following legal wording is sufficient for leaving a gift through a bequest.
"I bequeath the sum of $_____ or _____% of the residue of my estate to the Seamen's Church Institute, a corporation sole, whose principal office is located at 241 Water Street, for the benefit of the program and services for mariners."
A bequest can be further directed according to the donor's wishes. Gifts restricted for a specific cause must be clearly stated. If the language of the bequest in the will is unclear, it shall be studied by the Chancellor's Office for an interpretation of the intention of the donor.
Charitable Gift AnnuityThank you for your interest in a Charitable Gift Annuity. It is a great way for you to make a meaningful gift that helps the Institute in the future and immediately pays you a guaranteed income stream for the remainder of your life - usually at a much higher rate than what you might earn through dividends, CD's or a savings account. In addition, you will probably be eligible to receive an income tax deduction that can be taken in the year the gift is made. A portion of your annual income is also tax-free.
Charitable Lead TrustsA charitable lead trust likewise creates two interests, one for you and one for the Institute. SCI receives interest in income from the trust for a term of years. You may direct the use of this interest. Yours is the remainder interest in the assets when the trust terminates; often the assets are distributed to your children or grandchildren.
Charitable lead trusts can be effective planning tool for persons whose estates will be subject to the highest estate tax rates.
Charitable Remainder TrustA charitable remainder trust creates two interests, one for you and one SCI. Yours is the present interest - the right to future income for life or for a set number of years. SCI receives the remainder interest - or the right to receive the assets in the trust when it terminates.
Many people would like to make a major gift to SCI during their lifetime, but cannot afford to give up future income. By creating a charitable remainder trust with SCI and placing assets into it, you can often increase your income and receive that income for a life (or lives) or term of years. While the trust exists, the assets in it are invested to provide income to you. Only when the trust terminates are the assets distributed to the Institute to be used for its mission.
Charitable remainder trusts provide flexibility for you to accomplish specific personal objectives while ultimately helping the Seamen's Church Institute. Among the personal objectives could be increasing the income you receive from your assets, providing your spouse with an income for life, providing funds for your child's or grandchild's education, or funds for your retirement to supplement your other retirement programs.
There are two kinds of charitable remainder trusts: one provides variable income (charitable remainder unitrust) and the other provides fixed income (charitable remainder annuity trust).
Charitable remainder trusts are irrevocable; once you establish one, you cannot cancel it and receive your property back.
Some advantages of charitable remainder trusts include:
- You can help SCI.
- Often, higher income for you from appreciated, long-term assets (owned more than one year) than the income you now receive from those assets.
- Avoiding the reduction of appreciated, long-term assets (owned more than one year) through capital gains tax. The entire value of the assets continues to work for you.
- An income tax charitable deduction for a portion of the value of the assets placed into the trust. This provides real tax savings now.
The opportunity for tax-free income when the trust is funded with cash or municipal bonds.
Directed GiftsUnrestricted gifts can be used for the benefit of the Institute at the discretion of the Executive Director. Such gifts may be used for capital improvements, payment of debts and assessments, strengthen or add ministries, or for other uses that would serve as a benefit to the Institute.
Directed gifts for capital improvements or to a specific ministry of a parish, school or other diocesan entities must be carried out according to the donor's wishes as long as it is in keeping with the mission of the Institute. If the wishes of the donor cannot be complied with, the gift will not be accepted unless the will stipulates an alternate acceptable agreement.
EndowmentsGifts intended to endow a program, service or asset shall be placed and managed through the Endowment for the benefit of the named entity according to the wishes of the donor.
Insurance PolicyA gift of life insurance is one way you can make a major contribution to SCI at a relatively low cost. Gifts of life insurance can be made to the Institute for the benefit of a program or ministry of the Institute. A gift of life insurance is best described as a bequest at discounted cost on an installment plan.
There are several possible plans:
- Donate an existing paid-up policy: Name Seamen's Church Institute as the permanent owner and beneficiary of the policy. You can deduct the "terminal interest reserve" (IRS language that means "approximately the cash surrender value") as a charitable contribution for income tax purposes.
- Purchase a new policy: Seamen's Church Institute can be applicant, owner and beneficiary of the policy. You make annual contributions to the designee that equal the premium cost. The designee then pays the premium. Your annual contributions are charitable contributions for income tax purposes.
- Name Seamen's Church Institute as beneficiary; retain the other rights of ownership: While you receive no income tax benefit, the designee ultimately receives the death benefit, and, while the insurance benefits will be included in your estate, your estate will be entitled to an estate tax charitable deduction for that amount.
- Name Seamen's Church Institute as contingent beneficiary: We receive funds should your primary beneficiary die before you do.
Learn more about Planned Giving to the Institute.
Click here.