Securing the Future, Enriching the Present: Answers to Frequently Asked Questions (FAQs) About Legacy Giving

A planned (or “legacy”) gift is one that allows you to honor after death something that was important to you during your life. A common strategy for legacy giving is to make a “testamentary bequest.” The following FAQs are intended to help de-mystify this important estate planning tool.

Q: What is a “testamentary bequest” and why is it called that?
A: “Bequest” is derived from a word in Old English meaning “to declare or express in words.” “Testamentary” simply means relating to one’s “Last Will and Testament.” Thus, a “testamentary bequest” is a statement in one’s will of what that person wants to do with something that he or she owns at the time of death. Typically, a bequest is a gift of money or personal property that is to take effect after the person’s death. Example: I bequeath to my nephew John Smith my collection of ‘first day issue’ United States postage stamps.

Q: How complicated is it to make a bequest in my will? I don’t want to have to pay my lawyer to re-write my will.
A: It is not complicated at all, and there is usually no need to re-write your will. It can be as simple as drafting a “codicil” to an existing will, and the wording of the bequest can be as brief as that in the example above.

Q: Do I need a will?
A: Yes! Without a will, the laws of the state will determine who will receive your assets and who will manage your estate. A will allows you to appoint a guardian for your minor children, choose a representative to carry out your wishes, and determine the final distribution of your estate assets. Giving through a will and through beneficiary designations are two of the simplest ways to make a planned gift. And it’s never too early to create a will.

Q: How can I make a bequest to the church if I don’t know how much money I will have at the time of my death?
A: Any monetary bequest is obviously subject to there being enough money in your estate to satisfy the gift. However, any necessary pro rata reductions can easily be made if they are consistent with your intentions. For example, if the bequest directs that $4,000 gifts be made to each of five named organizations (for a total of $20,000) but the available funds are only $10,000, your executor would reduce the amount of the gift to each to $2,000.

Q: If I make a specific bequest to St. Christopher’s in my will now but later have a change of circumstances and want to revoke or change that bequest, can I do that?
A: Yes, as long as you have “testamentary capacity” (the ability of a person to make a valid will), you can change your will with a simple codicil such as that noted above.

Q: How are legacy gifts different from regular gifts or my annual pledge to the church?
A: There are important differences between a legacy gift and an annual pledge to the church. A legacy gift is placed in the church’s endowment, which is professionally invested in stocks and bonds to establish a long-term source of income. In contrast, your annual pledge is generally held in cash to support short term operating needs of the church each year. Your legacy gift and the endowment are used primarily to support larger, long-range needs of the parish. For example, your legacy gift can support important capital programs and outreach commitments well into the future. Your annual pledge is there to cover as much as possible of the day-to-day operating needs of the church, such as salaries, utilities, and building repairs and maintenance. Both are critical to how the church operates today and into the future.

Q: How much should I consider giving as a legacy gift?
A: This is obviously a very personal and individual determination and one that will depend on a variety of factors, including one’s age and station in life, the nature and extent of one’s financial assets, and the relationship that one has had with St. Christopher’s. One possible approach is to consider “endowing your pledge” by making a gift in an amount that would, in effect, continue your current annual stewardship gift (“pledge”) in perpetuity after your death. The Cloister Society webpage on St. Christopher’s website will soon provide examples of bequest amounts that would endow different levels of stewardship pledges.

If you have any questions or would like to discuss a possible legacy gift to St. Christopher’s, please contact any of the Planned Giving Committee members:
Jim Bast – 508-237-5588
Rob Boas – 404-668-3885
Pam Hufnagel – 908-500-6262
Errol James – 508- 942-6159
Jill MacDonald – 772-359-3515
Debby Saliba – 617-686-9985

The Importance and Benefits of Planned Giving and Bequests for St. Christopher’s

Over the years, many generous members of St. Christopher’s have made planned gifts (such as part of an IRA Required Minimum Distribution) and/or bequests to our church. Such gifts are extremely important and provide St. Christopher’s with numerous benefits that contribute to our long-term financial stability and growth. Here are some key advantages:

1. Endowment Growth: Planned gifts are usually directed towards the church’s endowment fund, helping to grow the fund over time. A larger endowment provides a reliable source of income for the church’s ongoing needs and future operations. In just the most recent four years generous parishioners have made both small and large bequests and lifetime gifts that have had the following major positive impact on the church:

(1) Includes unrestricted, temporarily restricted and restricted investments as well as the annual net return on investments.

2. Increased Support: Bequests and planned gifts often come from our dedicated members of the congregation who have a strong commitment to the church’s mission. These gifts can significantly increase the level of support for the church, enabling it to expand its outreach and services.

3. Legacy Building: Planned gifts allow donors to leave a lasting legacy that reflects their values and commitment to the church. This can inspire other members of the congregation to consider making similar contributions, fostering a culture of generosity and long-term support.

4. Tax Benefits: Donors who make planned gifts and bequests may receive significant tax benefits, such as deductions on their estate taxes. These tax advantages can encourage more individuals to consider planned giving as a way to support the church while also benefiting their own financial situation.

5. Funding for Special Projects: St. Christopher’s can use planned gifts to fund specific projects or initiatives, such as building renovations, new programs, or community outreach efforts. This targeted funding can help the church achieve its goals and make a greater impact in the community.

6. Strengthened Relationships: Engaging with donors about planned giving can strengthen the relationship between the church and its members. This deeper connection can lead to increased involvement, volunteerism, and overall support for the church’s mission.

By embracing and leveraging planned gifts and bequests, St. Christopher’s can secure its financial future, continue to serve the community effectively for generations to come and “Pass our Faith on to Future Generations.”

The Planned Giving Committee

The function of the Planned Giving Committee is to support and encourage membership in the Cloister Society, which was established in 2011 to recognize and thank those who have made a planned gift to the church. The mission statement of the Planned Giving Committee is as follows:

We will be long-term stewards of St. Christopher’s Episcopal Church by facilitating the growth of its endowment in order to support the church’s mission and its capital needs. We will do this by creating awareness of the importance of planned giving to St. Christopher’s, the importance of estate planning for our parishioners, and the various options for providing bequests or gifts to the church. We will also recognize and celebrate those who have made such gifts to St. Christopher’s unless they prefer to remain anonymous.

Members of the Planned Giving Committee (2025)

Rob Boas, Chair: rboas@bellsouth.net, 404-668-3885
Jim Bast, jimbast@outlook.com, 508-237-5588
Pam Hufnagel, chathamhuf@gmail.com, 908-500-6262
Errol James, ejames@soundviewpartners.net, 508-942-6159
Jill MacDonald, amacd2788@aol.com, 772-359-3515
Debby Saliba, debbysaliba@yahoo.com, 617-686-9985

Resources

To download a recent Morgan Stanley charitable giving review, click here.

To download a recent Bank of America/Merrill Lynch newsletter on a structured approach to charitable giving, click here.

To download a brochure on this important topic, click here:  Building and Protecting Your Legacy: A Primer About Gift Planning (2023).

Note:
The resources above are for informational purposes only; they do not constitute an endorsement of any particular financial institution.