A popular and enduring planned gift is a simple charitable bequest, which is a gift made through your will. Bequests are popular because they give you the opportunity to leave a lasting legacy and impact on our work. You are also enrolled in the Abbot’s Circle legacy society, remembered perpetually in the prayers and good works of the monks. When you make a charitable bequest, you retain full use of your property during life, so there is no disruption of your lifestyle and no immediate out-of-pocket cost.

To make a bequest, simply designate that part of your estate passes directly to us. Since a charitable bequest can take many forms, you have remarkable flexibility in how you make this designation. For example, you can leave:

• a percentage of your estate,
• a gift of a specific dollar amount, or
• a share of what remains after loved ones have been cared for.

You can also state exactly how you want your bequest to be put to use. Or, you can provide an unrestricted bequest that can be used whenever and wherever it's needed most. Most importantly, you can change your bequest whenever you choose—you remain in complete control of the planning process.

If your will is fairly current, it is easy to make a change or two, such as adding a charitable beneficiary. Your attorney can prepare an amendment to your will called a codicil. Many times this can be done quickly and for a nominal cost.

For sample language you can use in your will, click here. [PDF]

Contact us for more information about making a bequest through your will.

A gift annuity is an agreement between you and us that allows you to support our work while ensuring you or a beneficiary of your choice, has income for life.

Understanding how a charitable gift annuity works is quite simple. It’s as easy as 1-2-3.

1. You make an irrevocable gift to the Benedictines ($10,000 minimum for your first annuity, $5,000 minimum for any subsequent annuities);
2. You receive fixed payments for life (partially income tax-free) at a rate that is based on your age; and
3. You also receive a charitable deduction for a portion of your gift.

Charitable gift annuities can be funded for payments to go to one or two beneficiaries, such as you and a spouse. There are also a number of very attractive benefits. You can:

• fund it with cash or marketable securities,
• qualify for an immediate income tax charitable deduction for the gift (subject to certain income limitations),
• potentially spread out any capital gains tax liability, and
• as the donor, you can select payment intervals that work for you.

Professionals and other highly compensated employees who frequently max out their annual retirement plan contributions may want to consider a deferred gift annuity strategy. Deferred gift annuities offer three important benefits:

1. They can be used to supplement qualified retirement plan savings.
2. You qualify for a current income tax deduction now during your high-income years.
3. You can postpone the start of annuity payments until later—usually after retirement begins.

Now is a great time to consider this giving option as gift annuity rates are the highest they've been in years.

Sample one-life gift annuity rates, effective January 1, 2024

For a simple one-page explanation of a charitable gift annuity, click here to view At a Glance: Charitable Gift Annuity. [PDF]

Contact us for more information about charitable gift annuities.

Gifts of long-term, highly appreciated securities are the most common type of outright property gift. Donors typically give individual stocks, but bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly, and these gifts let you do more with your gift because of the very attractive tax benefits.

A charitable gift of appreciated securities held long term is not considered a sale and does not generate any capital gains tax, no matter the amount of the gain. To encourage gifts of appreciated property, Congress provides a valuable tax incentive—a charitable income tax deduction for the full fair market value of the securities (including the gain) for itemizers.

For example, if you give shares of stock worth $10,000, you can deduct the full amount on your income tax return (subject to certain income limitations) even if you bought the stock for $1,000. In addition, when we sell the stock, we keep every penny of the proceeds since we are a tax-exempt organization.

Note: Be sure to transfer the stock directly to us. Do not sell the stock, or you will lose this important tax advantage.

Contact us for more information about gifts of securities.

Make a Qualified Charitable Distribution from Your IRA

A qualified charitable distribution from an IRA is a good way for IRA owners age 70½ and over to support our work. It’s easy to do.

• Instruct your IRA custodian to make a distribution directly to the Benedictine Monks.
• Although there is no tax deduction, the distribution is excluded from your income for federal tax purposes—no tax is due!
• Up to $105,000 of your gift (annual aggregate limit for 2024) qualifies for this favorable tax treatment.
• Your gift makes an immediate impact.
• A qualified charitable distribution from an IRA counts toward your required minimum distribution (RMD) if one is due. 

A new QCD Option to Consider

IRA owners age 70½ or older may also choose to make a one-time, tax-free IRA distribution of up to $53,000 (in 2024) to create a new charitable gift annuity (CGA) or a charitable remainder trust (CRT). The distribution counts toward your RMD if one is due. This is an option worth considering if you want to make a gift from your IRA and establish a new income stream.

Note that spouses may contribute up to $53,000 each (in 2024) from their individual IRAs into a single CRT or a joint-life CGA. Payments may only go to you and/or your spouse.

By the way, you’ll probably need our Tax ID to make such a gift. It is 44-0547816 and our legal title is Conception Abbey, Inc.

Please contact us to learn more about planning and completing a qualified charitable distribution, or click here to calculate your required minimum distribution.

Many donors use qualified retirement account assets in their charitable gift planning. This is an easy gift to make and has distinct planning advantages.

Retirement account assets left to loved ones may be subject to higher taxation than other types of assets. By using retirement account assets to make a gift (and selecting alternative assets to leave to family members), you may be able to reduce taxes that otherwise would be imposed on those assets and leave more to your intended beneficiaries.

Contact us for more information about gifts of retirement account assets.

One method of making a gift with a retained right to income is a charitable remainder trust. Let's look at some of the benefits a charitable remainder trust can provide:

• An income for you and/or your beneficiaries for life or a period of up to 20 years
• An immediate and substantial income tax charitable deduction (subject to certain income limitations) for itemizers
• Potential avoidance of current capital gains taxes when the trust is funded with long-term appreciated property
• Reduction of your assets to reduce or avoid estate taxes
• Substantial reduction of probate costs, taxes, and other estate transfer expenses

An Immediate Charitable Deduction

A gift to a charitable remainder trust qualifies for an immediate income tax deduction, even though income is to be paid to the donor (and/or other beneficiaries) for life. The exact amount of the charitable deduction depends on the:

• value of the property transferred to the trust
• amount of income benefits that are payable each year to individual beneficiaries
• approximate length of time the income benefits will be paid
• prevailing interest rates at the time the gift is made

Despite the tax and financial benefits of a charitable remainder trust, you should consider this kind of arrangement only if you and your advisors determine it is compatible with your overall estate, tax, and financial plan.

For a simple one-page explanation of a charitable gift annuity, click here to view At a Glance: Charitable Remainder Trust. [PDF]

Contact us for more information about charitable remainder trusts.

Life insurance is also an excellent tool for accomplishing philanthropic goals while realizing other important financial objectives. Life insurance may even allow you to make charitable gifts you would never have dreamed possible.

Making a gift of life insurance is quite simple. If you are the insured policy owner, you simply transfer physical possession of your paid-up policy to us and file an absolute assignment or transfer of ownership form with your insurance company. Your company will then send a letter to us showing that we are the sole owner of the policy.

Hypothetical Example

Emmett owns a $100,000 life insurance policy with a cash value of $40,000. No further premiums are due, and he no longer needs the coverage. He can ensure that we will receive $100,000 at his death by making us the beneficiary, or he can transfer ownership of the policy to us now. When he transfers ownership, Emmett receives an itemized charitable deduction equal to the lesser of his cost basis or the policy's replacement value.

Contact us for more information about gifts of life insurance.

Donor-Advised Fund

Make an irrevocable gift to a fund maintained by a charitable organization and enjoy an income tax charitable deduction for the full amount of the gift. As the name implies, you can advise the fund regarding distribution; however, you may not place material restrictions on the fund.

Revocable Living Trust

Create a trust that can be revoked or changed during your lifetime that directs the disposition of your assets, including charitable gifts. A revocable living trust can minimize the cost and delays associated with probate, facilitate asset transfer, provide privacy and, unlike a will, ensure asset management continuity in the event of disability.

Charitable Lead Trust

Create a charitable lead trust that benefits us for a number of years, returns assets to your beneficiaries, and minimizes taxes.

Closely Held Stock

Donate closely held stock. You enjoy a charitable deduction equal to the appraised value of the stock with no capital gains tax due.

Tangible Personal Property

Donate gift property that can be used for our exempt purposes, and qualify for an income tax deduction for the full fair market value.

Contact us for more information about additional methods of giving.