Special Giving Committee Reports

David Ross, Committee Member

Committee Update

The Special Giving Committee has been reviewing the appropriate role of planned, deferred gifts and bequests in enabling the Chapel of the Cross to build its endowment funds to assure a stable financial future for facilities, outreach, and programs.

Questions related to the number and purpose of existing endowed funds, the various types of planned gifts that should be encouraged and the minimum dollar amount required to establish an endowed fund are being addressed by the committee. A general brochure describing the types of planned gifts the Chapel of the Cross wants to encourage is currently being prepared. Questions about these matters should be raised with Syd Alexander, Committee Chair, or any member of the Special Giving Committee.

A Window of Opportunity - Favorable Charitable Gift Deductions for 2005

Congress has acted to encourage additional gifts of cash to all charities for the rest of 2005. Their action enables donors to give generously, both for disaster relief and for educational, religious, health, environmental, and other causes and institutions.

The Katrina Emergency Tax Relief Act of 2005 (KETRA), creates temporary tax incentives for gifts of cash to any public charity made between August 28 and December 31, 2005. The Chapel of the Cross qualifies as a "public charity."

What does this mean for parishioners making gifts to Chapel of the Cross?

• Through December 31, 2005, individuals can make cash gifts to the Chapel of the Cross and deduct those gifts at up to 100% of their adjusted gross income (AGI) rather than the usual 50% of AGI limit.
• KETRA suspends the "3% reduction of itemized deductions" that penalizes some 'high income' donors.
• KETRA will allow some of the Chapel of the Cross donors to consider gifts funded by distributions from IRAs and other retirement accounts (or other tax deferred assets such as U.S. Savings Bonds, deferred income, accounts receivable) by allowing a 'wash' of the income tax liability. Generally, this option should only be considered by donors who are at least age 59½ and who will not need these assets in the future
• Cash gifts made to the Chapel of the Cross to fund a charitable gift annuity also appear to meet all requirements of KETRA.

This is a summary of information sent out by Duke University. Please contact your accountant or tax advisor for further information and details.

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© 2005 The Chapel of the Cross