Legacy Society Manual

Transcription

1 LEGACY SOCIETY Legacy Society Manual Supporting the Diocese and its Congregations for Generations to Come 0

2 Book of Common Prayer p. 445 The Minister of the Congregation is directed to instruct the people, from time to time, about the duty of Christian parents to make prudent provision for the well-being of their families, and of all persons to make wills, while they are in health, arranging for the disposal of their temporal goods, not neglecting, if they are able, to leave bequests for religious and charitable uses. 1

3 LEGACY SOCIETY TABLE OF CONTENTS Excerpt from Book of Common Prayer 1 What All Congregations Need to Know... 4 Rationale for a Legacy Society 6 Establishing a Legacy Society in Your Parish 1. Identify Leadership Rector Support and Vestry Approval 8 3. Establish an Endowment Define Criteria for Membership Choose A Name Prepare Written Material Identify Individuals Who Have Already Made Permanent Gifts Enrollment Period for Founding Members Publicity Member Enrollment Record Keeping Member Recognition Death of A Member Contact with the Bishop Clarkson Episcopal Foundation. 14 Sample Letters Sample Announcements/Articles Sample Invitations

4 Gifts That Qualify for a Legacy Society 1. Gifts to an Endowment Life or Residency Gifts Gifts Made at Death.. 24 Establishing an Endowment Mission Statement Endowment By-Law Authorization and Approval Endowment Committee Appointed 27 Establishing a Wills Program Appendix A Sample Announcement.. 31 Appendix B Sample Letter # Appendix C Sample Letter # Appendix D Sample Letter # Appendix E Sample Questionnaire. 35 Appendix F Zingers. 36 Appendix G Sample Pledge Card. 38 Appendix H Codicil.. 39 Support from the Bishop Clarkson Episcopal Foundation About the Bishop Clarkson Episcopal Foundation.. 40 Forms 43 3

5 WHAT ALL CONGREGATIONS NEED TO KNOW As Christians we begin and end our lives in faith, and during our lifetime, demonstrate our faith as active members of the Christian community through our involvement in a parish. We What Is Planned Giving? A planned gift is any gift made during a lifetime or under a will or other trust from assets accumulated during one s life. how to make decisions about what to do with all that God has given us to use. In other words, our stewardship symbolizes a deep desire to respond in gratitude for God s grace in our lives. Created in the image of God, we are engaged in a lifelong spiritual quest to be as generous as God has been to us. The need of a parish or mission for financial resources must always be set in the context of authentic exploration of our Christian response and witness. The initial and ongoing task is communication. Parishioners must understand the opportunity each of us have to leave a legacy of faith and resources, simply by making plans so that our property will benefit the people and institutions we love. With the structure to receive gifts in place, the parish should celebrate, grow, struggle, and mourn in our community of faith. In that context, there could be no better place to consider our own mortality and the legacy we would like to leave at the end of our lives. Bequests and other planned gifts, which enable each of your churches to expand its ministry, are really the ultimate demonstration of our stewardship commitment. The task at hand is to encourage Christians to enter into a dialog about ultimate stewardship The Ministry of Planned Giving Is a ministry that encourages and assists church members to plan responsibly for the disposition of their worldly goods. Encourages church members to make suitable provision for their family members while also remembering the church. Invites parishioners to witness to their faith, their love for God and the Church in a very special way. Strengthens the ministry of the church, the institution, or the program to which parishioners have a special commitment to support for generations to come. prepare to articulate its vision of future ministry that could be supported by bequests and other planned gifts. 4

6 The plan should include long-range and more immediate goals, as well as a variety of specific projects at several financial levels. It might be segmented to reflect work that could be done in say, six months, one year, or three years, and so on. To emphasize the important of ultimate stewardship gifts to the parish, memorial gifts and bequests that are already benefiting the community should be publicized, with appropriate recognition of the donor families and a description of work that has been accomplished as a result of the gifts. What Is a Legacy Society? A Legacy Society is an honorary organization created to commend and graciously thank those who have made a financial commitment in their estate plan to further the ministry of their local congregation, the Diocese, or another Episcopal institution. A Legacy Society also helps raise awareness in your congregations about Planned Giving. A Legacy Society does not raise funds. All gifts that result from Planned Giving go directly to your church, the Diocese or a designated institution. Parishioners are far more likely to make permanent gifts to their church if there is an Endowment Fund in place to receive, manage and distribute such gifts. 5

7 RATIONALE FOR A LEGACY SOCIETY As the structure for a gift-planning program is put in place, step-by-step, the [church leadership] may want to consider establishing a Legacy Society to which all those who have made a provision for the church in their estate plans automatically belong. There are four reasons why a parish may want to establish a Legacy Society: 1. Provides a System for Acknowledgments Once individuals have made known their planned giving commitments, they need to be thanked promptly and personally by the parish Rector and the chair of the endowment fund board or committee. Automatically inviting them to become members of the Legacy Society provides an additional means of acknowledgment that can be particularly meaningful. In addition, these individuals will receive a note of welcome and appreciation from the Bishop Clarkson Episcopal Foundation and the Bishop. 2. Helps Parish Stay Connected with Donors Many of those who will decide to make a planned gift to the church are likely to fit this profile: A senior citizen. A former leader no longer playing an active leadership role. Someone no longer in the mainstream and not in the know. One who attends church regularly if her/his health permits. Those who more or less fit this profile may no longer feel as connected to the church as they once did, yet they have made a decision to support the ministry of the church into the indefinite future. It is very important for those who have made such an estate provision to continue to feel good about their commitment, literally, for the rest of their lives. Therefore, the church leadership needs to be intentional about helping those faithful parishioners feel connected to their church. A Legacy Society is an ideal mechanism to accomplish this. By arranging a celebratory event, at least annually, to which each member is invited, an occasion has been provided to say, once again, thank you to those who have remembered the church in their estate plan. 6

8 In addition, at least one mailing in between the annual events is recommended. A newspaper clipping, leaflet, or other item of interest might be sent to the members. The most important objective is to stay connected to those who are very important to the church s future. 3. Raises Awareness of Planned Giving in the Congregation and the Diocese There will always be good photo ops at the special events of the Legacy Society, and appropriate publicity should be given to every such occasion. This helps raise awareness of the opportunity for membership and the gift-planning program in general. One effective device to raise awareness is to encourage members to invite a couple or a friend to the annual event. The nonmembers invited are likely to be good prospects for membership, and their presence provides a natural occasion for inviting them to consider becoming members. A LEGACY SOCIETY CAN BE VERY EFFECTIVE IN HELPING TO GET A GIFT-PLANNING PROGRAM ESTABLISHED AND IN KEEPING IT A VIABLE AND ONGOING ACTIVITY IN THE CONGREGATION AND IN THE DIOCESE. 4. Offers Opportunity for Witness When people make an estate provision for the church and allow their names to appear on a list of members, they are not so much receiving recognition as they are giving witness to their good steward-ship in supporting the future life and ministry of the church. As members, they are saying, I made this commitment because I felt it was important to provide for the future of the church. The hope is that others will be led to do likewise and make their own provisions. 7

9 ESTABLISHING A LEGACY SOCIETY IN YOUR PARISH The following information is presented as a guide to help you establish a Legacy Society in your own church. Please bear in mind that each Legacy Society will evolve in its own unique way due to many factors that you will encounter along the way. Some legacy societies will operate quite simply ensuring that members are appropriately honored, but with little formal structure. Others will have a stronger social component, with members getting together more regularly and the group developing more of an identity. It really doesn t matter. What does matter is that you honor all those individuals whose gifts will impact the future of your church in significant ways whose legacy will make a difference. 1. Identify Leadership Recruit an individual who will head up this new initiative in your parish. While certain tasks may be assigned to other volunteers (stuffing envelopes for mailings, etc.), there should be someone who is prepared to assume leadership and to champion the program. 2. Rector Support and Vestry Approval The support of the Rector is critical. Once you have this support, the next step is to get the Vestry* on board. It cannot be emphasized enough that without the enthusiastic support of the Rector and Vestry, this initiative will not be successful. Followers will not follow leaders who do not lead. Next, look to the participation of the current and former church leaders. For any individuals who have not yet made bequest intentions, a presentation about a Legacy Society could provide an excellent opportunity to educate them about the importance of planned gifts. Those who have already left a gift to the church in their wills can provide a testimonial and encourage others. 8

10 3. Establish An Endowment While it is not mandatory to have an endowment, it is highly recommended that you establish one, as an endowment will significantly enhance the prospects of the program s success. Parishioners considering leaving a bequest or other permanent gift to a church will want to know that the principal will remain intact and that only the income will be used. It is also important to define exactly what the approved uses are for the income. The more closely the usage can be tied to the mission and ministry of the church, the more attractive gifts to the endowment become. 4. Define Criteria For Membership A Legacy Society is created to support the gift-planning program, so it is important to maintain that association. Occasionally confusion may arise when a parish wants to acknowledge a donor for a significant cash gift for a current need or purpose. Generally, for this type of gift, it is best to provide an alternative means of recognition (a plaque, memorial book, etc.) rather than confusing the purpose of the Legacy Society. Confusion may also occur in connection with small memorial gifts that are given in memory of a person who has died. Even if these may be given to the endowment fund, they are not estate-type gifts (from accumulated assets) and should be acknowledged and recognized by means other than the Legacy Society. It is appropriate, however, to encourage significant memorials to be established through a named fund in the endowment fund. Usually the endowment fund policies provide a minimum gift level for administering it as a designated What is an Endowment? An endowment can be defined as a pool of property that is invested to provide an annual income fund (named and/or restricted), usually between $15,000 and $25,000. Some parishes have established a tradition of encouraging annual gifts to their endowment fund, usually smaller gifts offered in memory or honor of someone. These are commendable programs, but an alternative form of acknowledgment other than the Legacy Society needs to be provided. The goal is to maintain the distinction of legacy or estate type gifts, and sometimes it can be a challenge to establish clear guidelines. 9

11 5. Choose A Name One of the fun tasks is to choose a name for the Legacy Society. Usually, when the task force puts its mind to this question, the result is not a dearth but a plethora of ideas. So the challenge becomes choosing just one. Some churches have found that a society-naming competition is a creative way of raising awareness and generating interest in this new initiative. 6. Prepare Written Material A brochure or information sheet that introduces the Legacy Society to your congregation and explains its purpose should be created In addition, an enrollment form or card that makes it a simple matter to inform the church of an estate provision, should be prepared. This form or card should not attempt to extract information from those who have made estate provisions, but invite them to share whatever information they are comfortable in providing. This form also provides an easy way to receive permission to include the member s name on the list of Legacy Society members, at your church, the Bishop Clarkson Episcopal Foundation, and the Diocesan Center. A sample Enrollment Form can be found in the Forms section of this manual. Please note that regardless of how you format this form for your own legacy society, the content as presented should be included, as the Bishop Clarkson Episcopal Foundation is keeping track of the legacy societies throughout the diocese and needs all this information. 7. Identify Individuals Who Have Already Made A Permanent Gift Knowing who in your church has already left a legacy is extremely helpful as you get this new program off the ground. In addition to being able to acknowledge these individuals for their good stewardship, they can become advocates for your fledgling society and help raise awareness in your congregation of how important it is to remember the church in their estate planning. 10

12 There are a number of ways to solicit this information: introductory letter to all church members enclosing a response card, pledge cards, or your newsletter. Use any possible opportunity! 8. Enrollment Period For Founding Members Offering a period of 3-10 months or more for the enrollment of founding members can be effective in getting the Legacy Society and the gift-planning program off to a good start. This can be easily accomplished by establishing a future date for the formal dedication of the Legacy Society. Then, all those who make known their estate provisions for the church prior to the dedication date are offered the opportunity to become founding members of the society. A particular effort should be made to get commitments from all the parish leadership that would qualify them as founding members. This focus on leaders warrants special effort, as a successful effort here will provide great momentum for the launch of the gift-planning program. 9. Publicity Publicize your Legacy Society at every opportunity. To maximize your effectiveness in getting the word out and obtaining the information you need to get the Legacy Society started, be strategic plan carefully. Formal Announcement If possible, take advantage of a significant event, such as an annual meeting, to announce the creation of your new Legacy Society. A sermon preached on a pertinent lesson is another good way to launch this initiative. Follow-Up Mailings: Follow up with a mailing to all your parishioners, enclosing a packet of information, including: Letter of introduction Brochure Response Card or Enrollment Form Sunday Bulletin Announcements: Announce the creation of your Legacy Society in your Sunday bulletins. Schedule a one-hour presentation to which everyone is invited to learn more about Wills and Planned Giving. 11

13 Web site: Provide information about your Legacy Society on your Web site. Later on, when you society is established, this will be an excellent way of acknowledging members. One-liners: Great for bulletins - can be used over and over again. Newsletter articles: Have some interested individuals write a series of related articles, each article building on the previous one. In addition to talking about Planned Giving and the Legacy Society, you might want to write articles about your church s hopes and dreams and how planning for the future can make your specific mission and ministry a reality. Sermons: Your Rector is directed to preach on wills (see BCP. pg. 445). A sermon on wills provides an excellent opportunity to promote Planned Giving and to educate your congregation about your Legacy Society. You may also want consider having individuals who have become Legacy Society members talk to the congregation about their planned gifts to the church. Lay sermons can be extremely powerful. Workshops: Organize workshops on Planned Giving and Wills Programs to further educate your parishioners, and provide opportunities for questions and answers. The Foundation is also available to lead workshops. It is highly advisable to have several contact people available to whom parishioners can talk privately, if desired. Also, arrange ahead of time to have the names of several lawyers to whom individuals can be referred. 10. Member Enrollment Establish a system for receiving and acknowledging new members. It is extremely important to handle documents and information about members of the Legacy Society in a professional way. Prompt acknowledgment of new commitments is extremely important, and a personal thank-you note or letter should be sent from both the Rector and the Legacy Society leader. A Status Report from the Bishop Clarkson Episcopal Foundation should be submitted each month. As soon as this information is received at the Foundation, a letter from the President of the Foundation, as well as from the Bishop, will be sent to the new member. 12

14 11. Recordkeeping Establish a simple system for recording, filing, and reporting information about membership, provisions, etc. The Bishop Clarkson Episcopal Foundation will be glad to help you set up what you need to keep track of Legacy Society members and their provisions. 12. Member Recognition Founding Members Plan a way to recognize all founding members (as well as members who join later). This can be done by a permanent memorial, such as by displaying the names of founding members on a Tree of Life or a plaque. Be creative. There are many unique ways that you will be able to preserve the memories of those who will impact the future of your church in such a significant way. In addition, plan a formal dedication ideally in connection with some type of festive event to which all founding members are invited and encouraged to attend. The imagination of the planning committee (and perhaps a budget) is the only limitation on what form this event might take. It can offer a wonderful opportunity to energize, inspire, and inform the parish about the gift-planning program and the opportunity for membership in the Legacy Society. On-Going Recognition of All Members Plan an annual event: Plans should be in place to provide on-going thanks and recognition to members of the society. An annual dinner offers an excellent opportunity to do this. Because it is easy to reverse beneficiary designation in many planned giving instruments, especially life insurance policies, retirement plans and wills, it is important that the member maintain confidence in the parish and its ministry. It is also important that the parish keep in contact with the member. From time to time, the Legacy Society leader should check to make sure that the parish has maintained contact with Legacy Society members. 13

15 13. Death Of A Member When a member of your Legacy Society dies, send a condolence letter to the family. After a Legacy Society member passes away, keep your eyes open for probate or other legal notices about the administration of an estate or trust. If you do not receive this information within six months of a member s death, and if you are reasonably certain that you should receive a bequest, you should make inquiries of the deceased s attorney. Make sure the family has been thanked, and coordinate the level of publicity with any heirs. When you receive the bequest, share the news with the congregation. Write an article for your newsletter, not only discussing the wonderful gift, but also mentioning your Legacy Society. 14. Contact With The Bishop Clarkson Episcopal Foundation As the The Bishop Clarkson Episcopal Foundation will be keeping careful track of Legacy Society members throughout the diocese, we request that each year you complete a Status Report. 14

16 Sample Letters Dear Fellow Parishioners of [Church Name] [Church Name] is beginning a concerted effort to inform its members about the advantages of careful estate planning, including planned giving, and to show parishioners how to begin planning for the thoughtful distribution of their estates. The recommended first step in the estate planning process is to fill out the booklet entitled Planning for the End of Life, which has been provided to us by the Bishop Clarkson Episcopal Foundation. This booklet, when completed, will provide your family and friends with an invaluable resource upon your death, and will help you organize your thoughts as you work with your attorney relative to how you want your estate distributed when the time comes. We encourage you to fill out this booklet and work with your legal advisor concerning your will and let your family and/or friends know where it is kept. Soon you will be given information on a variety of financial vehicles that can help you ensure your estate, which you worked so hard to build, is used the way you desire after your death. If you do not currently have a will, we strongly encourage you to prepare one as soon as possible. Simple wills can be done at a reasonable cost to you, and will ensure that your estate is distributed according to your desires rather than the desires of the State of Nebraska. Meanwhile, if you have any immediate questions regarding wills or planned giving, please feel free to call me at [phone #] and I will help you get the answer. In His Name, Chair, [Church Name] Endowment Fund Committee 15

17 Dear Fellow Parishioners of [Church Name] At the annual meeting on [date] we announced the formation of the [Name] Legacy Society. This is an exciting program that recognizes people who remember [Church Name] in their estate planning. This can be done through a will, life insurance policy, qualified retirement plan, stocks or real estate gifts, or special gifts, some of which can provide the giver income for life. We are prepared to help you in your estate planning journey and to encourage you to at least make a will as soon as possible. Those who notify us in writing that they have remembered [Church Name] in one of the above methods will become members of the [Name] Legacy Society, and will be appropriately recognized. Those who do this before [date] will become Charter (or founding) members of the [Name] Legacy Society and will receive special recognition. Please join us in this journey of faith. When you have completed your estate planning, let us know in writing that you have included [Name] in your estate, and you will automatically join us as members of the [Name] Legacy Society. If you have questions about the Legacy Society or any of the many ways of remembering [Church Name], please call either [Contact Name] or The Rev. Canon Tim Anderson at The Bishop Clarkson Episcopal Foundation ( ). Forms for notifying us about your remembrance are available at the church office [phone #], or [Contact Name] will be delighted to mail you one. The [Name] Endowment Fund Committee 16

18 Sample Announcements/Articles Have you provided for your church in your estate planning with a trust, a gift of property, or an Individual Retirement Account? Have you made the church the beneficiary of a life insurance policy, or remembered the church in your will? If your answer is yes, you have provided a legacy gift to the church and are invited to become a member of the [Name] Legacy Society. The Legacy Society is an organization created to honor, commend and graciously thank those who have made a financial commitment in their estate plans to further the ministry of their local congregation, the Diocese, or an Episcopal institution. Kindly complete a [Name] Legacy Society Enrollment Form obtained from [your Contact Name/s] Return it to [Contact Name/s] before [date] and join with those in your parish who are Legacy Society members. Live Faithfully, Joyfully, Hopefully, and Above All, Leave a Legacy The [Name] Legacy Society was created by [Church Name] to honor the act of giving to God and assuring the future of our service to people in Christ s name. It provides an opportunity to commend and graciously thank those who have made a financial commitment in their estate plan for a congregation, the Diocese, or an Episcopal Institution. If you have made a provision for the church in your estate planning, please join the [number] founding members from [Church Name] and enroll in the [Name] Legacy Society this year. A [Name] Legacy Society Enrollment Form may be obtained from [Contact Name/s]. 17

19 PLANNED GIVING IT WORKS FOR ALL OF US Have you planned how your estate will be distributed yet? If you have not, the State of Nebraska will be happy to do it for you. Of course they have no idea how you want your assets distributed, so they will do it the way they do it for all other people who don t have a will. A will is a simple method of ensuring the assets you have worked so hard to accumulate are used in the manner you desire after they are gone. In your will, after you have provided for your family and friends, consider what charities and religious organizations you want to help support one last time. In addition to a lump sum bequest, you may want to consider some other creative ways of supporting the church, including pooled income funds, charitable gift annuities, charitable remainder trusts, life insurance policies, charitable lead trusts, and others. If you have any questions or want more information about any of these financial plans, please feel free to call the the Bishop Clarkson Episcopal Foundation. Your call will be handled in a professional and confidential manner. Those who notify the [Church Name] Endowment Fund Committee in writing that they have remembered [Church Name] through one of the above methods will become members of the [Name] Legacy Society, and will be appropriately recognized. Those who do this before [date] will become Charter (or founding) members of the [Name] Legacy Society and will receive special recognition. If you have questions about the [Name] Legacy Society, please call [Contact Name] or any member of the Endowment Fund Committee. Forms for notifying us of your remembrance are available at the church office [phone #], or [Contact Name] or the Foundation will be glad to mail one to you. 18

20 LAST CHANCE TO BE A FOUNDING MEMBER If you complete your estate planning process and remember [Church Name] by [date], you will join us as a Founding member of the [Name] Legacy Society at a special celebration in [date]. Should you complete your estate planning process and remember [Church Name] in your estate after [date], we will warmly welcome you as a regular member of [Name] Legacy Society. Either way, you will feel better for having planned what happens to the hard-earned fruits of your lifetime of labor, and [Church Name] will remember your generosity and thoughtfulness forever, by way of a special commemorative work of art at the church. Please join us in this journey of faith. When you have done your estate planning let us know in writing that you have included [Church Name] in your estate, and you will automatically join us as members of the [Name] Legacy Society. If you have questions about the [Name] Legacy Society, or any of the many ways of remembering [Church Name], please call either [Contact, phone #] at [Church Name], or the Bishop Clarkson Episcopal Foundation at Forms for notifying us of your remembrance are available at the church office at [phone #], or [Contact Name] will be delighted to mail you one. Remember Join the [Name] Legacy Society before [date] and become a Founding Member. 19

21 GOD HAS A PLAN DO YOU??? By now you have heard many times about the importance of planning your estate and have had the opportunity to have your questions about the subject answered. We hope you have completed or at least begun the planning for what you want done with your estate, however large or small it may be. Whether you have $100, $100,000 or $1,000,000 when God calls you home, the decision about where you want your worldly wealth to go should be made by you, after prayerfully discussing it with God. A will is by far the best and easiest way to ensure that your wishes are followed. If you complete your estate planning process and remember [Church Name] in your will before [date], you will join us as a Charter (or founding) member of the [Name] Legacy Society. Should you not be able to complete the process until after [date], we will welcome you as regular members of the [Name] Legacy Society. Either way, you will feel better for having planned what happens to the hard-earned fruits of your lifetime of labor, and the [Name] Legacy Society will remember your generosity and thoughtfulness forever, by way of a special commemorative work of art at the church. Please join us in this journey of faith. When you have done your estate planning let us know in writing that you have included [Church Name] in your estate, and you will automatically join us as members of the [Name] Legacy Society. If you have questions about the legacy or any of the many ways of remembering [Church Name], please call either [Contact Name] or the Bishop Clarkson Episcopal Foundation. Forms for notifying us of your remembrance are available at the church office [phone #] or [Contact Name] or the Foundation will be delighted to mail one to you. 20

22 Sample Invitations ENJOY A FREE LUNCH AND LEARN ABOUT WILLS!!! DATE: Saturday, April 26, 2005 TIME: 11:30am to 1:00 pm immediately following the 10:00am service WHERE: [Church Name] Parish Hall WHAT: An informal wills discussion learn about WILLS and get our questions answered by an expert. If you do not yet have a WILL, find out how to begin the process and what it might cost. If you have a WILL, learn how to update it. If you don t understand why you need a WILL, let the Foundation explain it in layman s terms. THE SPEAKER: The Rev. Canon Tim Anderson, Executive Director of the Bishop Clarkson Episcopal Foundation COST: None OBLIGATION: None SPONSOR: [Name of Church] Endowment Fund DON T MISS OUT CALL / AND SIGN UP TODAY 21

23 Please join us for a Celebration Dinner honoring you and your fellow Founding Members of the St. Swithens Legacy Society Friday, the twenty-fourth of October two thousand eight from 6:00 9:00 pm 2001 Clarkson Circle, #1 Lincoln, NE RSVP Name Address/Phone 22

24 GIFTS THAT QUALIFY FOR A LEGACY SOCIETY 1. Gifts To An Endowment Cash Most common, easiest form of gift. Current income tax deduction. Appreciated Property Securities, real estate or tangible personal property such as automobiles, coins, etc. No capital gains tax paid on appreciation. Value of gift for income tax deduction is generally fair market value of appreciated property. 2. Life Income Or Residency Gifts Church Pooled Income Fund Cash or appreciated property. Current income tax deduction based on age of the donor and/or beneficiaries. No capital gains tax on appreciated property. Guaranteed income for life to donor or beneficiaries. Estate tax savings. Charitable Gift Annuity Cash or appreciated property. Income tax deduction on difference between fair market value of initial gift and actuarial cost of annuity. Income for life at fixed rate to donor or beneficiaries. Estate tax savings. Life Estate Gift of real estate: home, vacation home, farm, ranch or condominium. Current income tax deduction; no capital gains tax; estate tax savings. If income property, income stream can continue. Occupancy of property until death. Charitable Remainder Trust Cash or appreciated property. Current income tax deduction based on age of the donor and other factors. No capital gains tax. Guaranteed life income (two different ways of calculating). More complicated and flexible than Church Pooled Income Fund or Charitable Gift Annuity used for larger amounts. Estate tax savings. 23

25 3. Gifts Made At Death Bequest by Will Cash or property of any kind. Simple to set up. Removes asset from estate. Can be a set amount, percent of an estate, or a specific asset. Life Insurance Church is named as beneficiary in either new or existing policy. If existing policy, income tax deduction available. Gift to church is much larger than otherwise possible. Premiums tax deductible. Estate tax savings. Charitable Remainder Trust Described in above section on life income. Can also be set up through will. Provides income for beneficiaries for specified period. No income tax deduction. When used as the beneficiary of an IRA or other retirement plan, eliminates both estate and income taxes on the assets in the plan. Retirement Plan or IRA Church is named beneficiary by the owner. Assets go directly to church with no income or estate taxes due. PLEASE NOTE GIFTS MADE TO CAPITAL CAMPAIGNS ARE NOT CONSIDERED PERMANENT GIFTS 24

26 E S T A B L I S H I N G A N E N D O W M E N T Before establishing an Endowment Fund you will need to check your church s articles of incorporation and bylaws. If you do not have a provision within your by-laws for an Endowment Fund, then you need to seek guidance either from the Bishop Clarkson Episcopal Foundation or an attorney to incorporate them. The Bishop Clarkson Episcopal Foundation has put together the following information for all Episcopal parishes and incorporated institutions in the Diocese of Nebraska as a guide to assist in setting up an endowment program. Please contact the Foundation office at if you have any questions. Definition of Endowment An endowment can be defined as a pool of property that is invested to provide an annual income. WHAT THE FOUNDATION WILL DO Assist with the establishment of an endowment program Present seminars and workshops Provide information on Wills, Gift Annuities, the Pooled Income Fund, and other planned giving opportunities Provide printed materials for mailing or tract racks Manage Endowment Funds on behalf of a parish, providing the income to the Vestry for use according to their guidelines 25

27 Organizing Your Program We suggest the following steps to get your Endowment Program started: 1. Mission Statement 2. Endowment Bylaws 3. Authorization and Approval 4. Endowment Committee Selection 5. Wills Program 6. Follow-up 1. Mission Statement If your parish does not have a current mission statement, one should be adopted. The purpose of a mission statement is to state what the parish is in business to do. It should specify fundamental reasons for the parish s existence, establish the scope of parish activities, and provide overall direction for the parish. The mission statement should provide the basis for the Endowment Guidelines, particularly those regarding distribution. 2. Endowment Bylaws As bylaws will be specific to each church, the Bishop Clarkson Episcopal Foundation can work with you to develop your bylaws, and will be glad to provide you with sample parish bylaws on request. A new parish bylaw should be created to deal with the Endowment Committee. The following is a guideline that each church will alter to suit its own needs. We recommend you include the following: Purpose: All bequests received by [Parish Name] will be under the direction of an Endowment Committee whose purpose shall be to manage, invest and raise endowments within [Parish Name]. Composition: The Vestry will appoint a committee, being communicants in good standing, pledgers of record and regular in attendance to serve 26

28 on the Endowment Committee. The Vestry should decide if Vestry members should be members of the Endowment Committee. Terms: Terms should be limited to a specific number of years. The initial committee should be set up to have members rotate off in such a manner that new member(s) are added each year. Meetings: Once the Wills Program has been completed, the Endowment Committee should meet at least once a year. A report of endowments should be made to the parish at the annual meeting. Removal: Include a provision for removing members, if necessary. Bonding: The Committee should be bonded for whatever amount the Vestry determines. Distribution: Include a statement that refers to how the income shall be distributed as defined in the bylaws. 3. Authorization And Approval The Vestry should adopt the endowment bylaws for incorporation in the parish bylaws and affirmed by the congregation at the parish annual meeting. 4. Endowment Committee Appointed The Endowment Committee appointed by the Vestry, will be the group responsible for setting up and managing the program and will: Establish roles for the Committee. Be responsible for implementing a Planned Giving program, such as the Wills Program or a similar program in the parish (see Establishing a Wills Program on page 36). Work with the finance committee to see that information on the program is included in all financial plans, programs and literature. Work with the newsletter editor, bulletin editor, etc. to see that information in the program is included. Remind the Vestry and Rector that each of them should have a will that includes the parish. Oversee the management of the endowment funds. 27

29 ESTABLISHING A WILLS PROGRAM Establishing a Wills Program is one way of getting a planned giving program launched there are others. The Bishop Clarkson Episcopal Foundation will work with you on some options. Once an Endowment policy is in place, the following steps should be taken: Inform the congregation about the program through announcements (see Appendix A for sample announcement). Four weeks after the first announcement, send a letter with the brochure entitled How to Make a Will That Works, which the Foundation will supply. (See Appendix B for sample letter.) Four weeks after the first letter, send a second letter with a Wills Packet. (The Wills Packet will be provided by the Foundation.) (See Appendix C for sample letter.) Four weeks after the second letter, send a third letter that is both a wrap up and evaluation. (See Appendices D and E.) Each congregation should customize these announcements and letters so that they will be beneficial to their program. 28

30 Hints On How To Encourage Wills There is a WILL in your future. Is it yours or did the State of Nebraska write it for you? Once the Wills Program has been presented to the Parish, the following ideas are recommended to keep the Endowment Fund active in the congregation: Include a box on the parish pledge card asking if the parish has been included in the parishioner s will. (See sample pledge card Appendix G.) Note: If yes is checked, a thank-you note should be sent from the Rector and Senior Warden. A reminder about wills should be in the Parish Newsletter monthly. (See Appendix F, Zingers. ) An annual report from the Vestry to the congregation on what projects, programs, etc. the endowment supported during the previous year. Annually do a mailing or include a brochure in the parish newsletter on gift annuities, the pooled income fund, giving through life insurance, etc. These brochures are available through the Foundation at no cost. From time to time invite the Executive Director of the Bishop Clarkson Episcopal Foundation to speak to the congregation on different aspects of planned giving, wills, etc. Announce bequests that have been received by name at Sunday services. 29

31 Appendices Appendix A Sample Announcement Appendix B Sample Letter #1 Appendix C Sample Letter #2 Appendix D Sample Letter #3 Appendix E Sample Questionnaire Appendix F Zingers Appendix G Sample Pledge Card Appendix H Sample Codicil 30

32 Appendix A Sample Announcement Print in the monthly newsletter or Sunday bulletins for three weeks prior to the first letter. YOU HAVE A WILL, yours or the one the State of Nebraska has written for you! Your WILL is your final opportunity to practice good Stewardship. In the coming months, we will mail information to you on how to make or review your WILL. From the Canons of the Protestant Episcopal Church in the United States of America, Title III, Canon 14, Section 2 (b) (4) states: It shall be their duty clergy to instruct all persons in their charge concerning Christian stewardship, including: The responsibility of all persons to make a will as prescribed in the Book of Common Prayer, page 445. The Book of Common Prayer states: The Minister of the Congregation is directed to instruct the people, from time to time, about the duty of Christian parents to make prudent provision for the well-being of their families, and of all persons to make wills, while they are in health, arranging for the disposal of their temporal goods, not neglecting, if they are able, to leave bequests for religious and charitable uses. 31

33 Appendix B Sample Letter #1 When: How: Who: Send 3 to 4 weeks after announcing the Wills program Parish letterhead Signed by the Rector and Senior Warden To the Household of (Parish Name) : Or Dear : People often think only wealthy people need WILLS; however, the more modest an estate, the more important it is to protect it from any unnecessary costs or delays caused by not having a WILL. Taking care of your family and providing for the needs of others is the responsibility of every Christian. A WILL gives you the opportunity to determine how your assets will be disposed of, who will raise minor children, and who will receive bequests, and a WILL is flexible enough to carry out detailed wishes when you are not there to do so. Failure to make a WILL forfeits your rights to make these choices. If you are interested in more general information on WILLS, we will be happy to send you a copy of Why Write a Will. This brochure, made possible by the Bishop Clarkson Episcopal Foundation, describes the importance of making a WILL and some additional considerations when making a WILL. A steward is a good manager. A WILL is a legal and simple way to practice good stewardship. In a few weeks, you will receive further information on how to make or review a WILL. Faithfully, (Signed by the Rector and Senior Warden) 32

34 Appendix C Sample Letter #2 When: How: Who: With: Send a month after the first letter Parish letterhead Signed by the Rector and Senior Warden General Information for Making a Will Codicil example To the Household of (Parish Name) : Or Dear : Last month we sent you a letter which explained the importance of making a WILL and basic considerations in making a WILL. You may have found the most difficult part of making a WILL is getting started. General Information for Making a Will should help you start to think about what you want in your WILL. We hope this information will be useful. Faithfully, (Signed by the Rector and Senior Warden) 33

35 Appendix D Sample Letter #3 When: How: Who: With: Send one month after the second letter Parish letterhead Signed by the Rector and Senior Warden Survey or questionnaire To the Household of (Parish Name) : Or Dear : Over the past few months, you have received information on WILLS. We would appreciate your help in evaluating the information you have received. You will be interested to know that if you include the parish in your WILL, the money will go into the parish endowment fund. Income from this fund will be available to the Vestry annually to be spent according to the parish guidelines. Because our lives change so rapidly, your WILL and related documents should be reviewed on a regular basis. If you have not filled out a form Planning For the End of Life please ask us to send you one. A good time to do this might be when you make your annual pledge. Faithfully, (Signed by the Rector and Senior Warden) 34

36 Appendix E Sample Questionnaire Please help us by answering a few questions. Your assistance is appreciated. Was the information useful? yes no What did you find most helpful? Presentation by the Bishop Clarkson Episcopal Foundation Instructions for My Family and Friends General Information for Making a Will Did you already have a WILL? yes no If no, have you since made a WILL or plan to make one in the near future? yes no Did you, or do you, plan to include (Parish Name) in your WILL? yes no Are you aware that it is best for both spouses in a marriage to have a WILL? yes no What information did you need that was not included? Comments: Thank you for taking the time to help us by answering these questions. 35

37 Appendix F Zingers Zingers is a term the Foundation uses to denote quips that could be used in newsletters or bulletins as reminders to the congregation to consider the church when they make or update their WILL. Make up your own! If you come up with any really good ones, please let us know. A WILL is a creative vehicle through which to make thoughtful gifts. There is a WILL in your future. Is it yours or did the State of Nebraska write it for you? Do only wealthy people need a Will? NO! Even if your estate is modest, your heirs few, your wishes simple, MAKE A WILL! EVERY WOMAN NEEDS A WILL! Women live longer than men, earn more than ever before and control approximately 2/3 of all assets in the United States. By making a WILL you: o Name guardians for your children o Control the distribution of your assets o Select who will administer your assets o Are a good steward Is the WILL of a Christian different? YES! Is God s work included in your WILL? When you need a WILL, it will be too late to write one! ACT TODAY. Dad didn t believe in WILLS.... but Mom does, she had to settle his estate. When is the best time to make a WILL? TODAY! Your WILL is an opportunity to honor those who have given meaning and purpose to your life. A steward by definition is a manager. Making a WILL is an act of stewardship. Is God s will in your WILL? 36

38 Do you know who your heirs will be? Not if you don t have a WILL! Who needs a WILL? Every adult who owns anything and cares what happens to it. When was the last time your WILL had a check-up? Who would care for your children if they lost both parents? Through your WILL, you can declare your choice of guardians. The cost of making a WILL may be the best bargain you ever receive. It costs little compared to what you can save your heirs. Are you leaving a legacy of red tape for your heirs? A WILL can cut through confusion and help avoid misunderstandings. Your WILL can be a testimony of your faith. Consider leaving a gift to your church. Your WILL speaks for you after your death. What does yours say about your Christian commitment? Be a WILLING Christian. Remember the church. Your WILL is your final opportunity to practice good stewardship. If a stranger read your WILL, would he know you were a Christian? Does your WILL reflect your will, God s will, or the state s will? If you do not have a WILL, the state will control your assets, distribute your property, and decide on guardians for your children. Through an annuity provision in your WILL, you can provide payments for life to a relative or friend and also make a gift to your church. Your dollars do double duty! A WILL can safeguard your estate from unnecessary taxes and court costs. Your WILL becomes a public document when you die. What will yours say about your Christian beliefs? Is your Connecticut WILL valid in Nebraska? Probably, but it is a good idea to have your WILL checked by an attorney when you move to another state. 37

39 Appendix G Sample Pledge Card THE PARISH OF On [date] [year] : I/We pledge % of my/our annual income to God s work through the Parish of This pledge will be: $ weekly; monthly; quarterly; annually. Signature(s): Date: Date: I/We have a current Will I/We have included the Parish in my/our Will(s) I/We want to include the Parish in my/our Will(s) and need legal assistance. I/We would like information on how to make: a gift of life insurance a gift of stock a gift that will provide me/us with an annual income for the rest of my/our life. This pledge may be adjusted or cancelled by written notification to the Parish treasurer. 38

40 Appendix H Codicil ***** PLEASE READ CAREFULLY *** This form of Codicil is only a sample to assist you in making a gift to your church. You and your counsel, if any, should consider whether there are any other provisions that may be desirable in view of the provisions of your estate plan and your circumstances and whether another instrument may be more appropriate under the circumstance. This form of Codicil should not be used without an exercise of judgment as to whether it is appropriate for your estate plan and in light of the other documents that you have executed to implement your estate plan. You are strongly urged to consult your counsel before executing this Codicil to the extent you deem necessary. THE BISHOP CLARKSON EPISCOPAL FOUNDATION MAKES NO REPRESENTATION THAT THIS FORM IS APPROPRIATE FOR PARTICULAR CIRCUMSTANCES OR ESTATE PLANS This is a codicil to the last Will and Testament of [your name] of [your address]. I, [your name] of [your address] do hereby make, publish and declare this to be the First Codicil to my Last Will and Testament dated [date of will]. 1. I hereby bequeath the sum of [dollar amount in numbers followed by amount in words] to [name of church or institution]. 2. In all other respects I confirm my said Will and Testament dated [date of Will]. In witness thereof I the said [your name] have hereunto set my hand this [date] day of [month], [year]. Signed: Dated: [your name] [today s date] Witnessed by: 1) [Printed full name of first witness] [Signed full name of first witness] [Occupation of first witness] [Address of first witness] Witnessed by: 2) [Printed full name of second witness] [Signed full name of second witness] [Occupation of second witness] [Address of second witness] THE SIGNED ORIGINAL OF THIS FORM SHOULD BE ATTACHED TO THE ORIGINAL OF YOUR WILL 39