Planned Giving

Planning your gifts for…

Investing in lives.  Investing in futures.  Investing in hope.

Perhaps you’ve only been involved with the City Mission for a short time. Or, perhaps you’ve helped us for years, even decades. Regardless, you’ve seen firsthand what a difference one person can make. Perhaps you’d like to do more.

Yet, you’re not really sure how to do this—how to maximize your gifts in a way that makes the most financial sense for you and your family.

There are so many questions. What can I really afford to give? How can I best maximize my gift—stretching the dollars I do give? Can I do this in a way that provides some relief from taxes? If so, how? Finally, is there a way to improve my own financial situation and at the same time help The City Mission?

View Planned Giving Booklet

One of the simplest ways of being a sound steward of what God has entrusted to you, is to make sure your estate is left in the hands of those doing God’s work. While that certainly might include family members, naming The City Mission or The City Mission Endowment Foundation in your Last Will and Testament will be a blessing to many for years to come. You should have an updated Will so that you can thoughtfully and prayerfully direct the transfer of resources you no longer need.

Endowment – Gifts in Perpetuity

Perhaps you are interested in a gift that will continue to generate revenue for the work of The City Mission well into the future. Did you know about The City Mission Endowment Foundation? This foundation is here for the exclusive purpose of supporting The City Mission. Invested wisely and carefully, any gift given to the Endowment Foundation will generate interest and dividends that are passed along year after year to the operating budget of The City Mission.

The City Mission also has an endowment fund with The Cleveland Foundation. Gifts designated to this fund are used in the same manner. This is especially convenient for those individuals who already have a donor-advised fund (or other fund) with the Cleveland Foundation.

Life Insurance

One of the easiest ways to provide a lasting gift to the City Mission is with Life Insurance.

You may have a life insurance policy that isn’t really needed anymore. If so, you could transfer ownership of the policy to the City Mission or The City Mission Endowment Foundation. This provides an immediate tax deduction equal to the lesser of the premiums paid or the current value of the policy. Or, you could maintain ownership and simply make the Mission the beneficiary.

If you don’t have a life insurance policy you may wish to purchase one. The beauty of life insurance is it allows you to maximize your gift by creating a larger estate at a low cost over time. Your payments are also tax deductible if you make The City Mission or the The City Mission Endowment Foundation the owner.

Gift Annuity

A Gift Annuity is a way to make a future gift to The City Mission while at the same time receiving a guaranteed annuity for life. It provides:

  • A guaranteed annuity that, depending on your age, is typically a larger payment than CDs and other guaranteed fixed investments
  • An immediate tax deduction
  • A way to minimize capital gains over time, when funded with appreciated assets
  • A method to minimize estate taxes
  • A way to diversify invested assets
  •  A gift annuity can be established in a number of ways, but we suggest two
    • Through the City Mission Endowment Foundation which will guarantee your payments when the foundation is the beneficiary;
    • Through the Cleveland Foundation which will guarantee your payments. The Cleveland Foundation will administer the annuity, but The City Mission will be the beneficiary.

Charitable Lead Trust

A charitable lead trust is appealing to individuals who may be subject to a large estate tax. The donor establishes and funds an irrevocable trust. The City Mission receives payments from the trust, usually for a set number of years. At the end of the term, the trust assets are returned to the donor or passed on to heirs.

Payments to the City Mission can be a fixed dollar amount or a fixed percentage of the fair market value of the trust. The length of payments to The City Mission could be designed to achieve a near 100% charitable gift tax deduction when the trust is established.

IRA Distributions and Other Retirement Plans

At age 70-1/2 individuals must begin to take the minimum distributions from their retirement plans. Perhaps this money isn’t really needed. Perhaps taking this required distribution only increases taxable income, perhaps into the next higher tax bracket, causing more problems. Instead of donating money directly from current income, you can donate the required IRA minimum distribution to The City Mission. This eliminates any taxation on the IRA withdrawal—money that has never been taxed. If later, your financial situation changes, you can reduce the donation portion to The City Mission as needed.

Inherited retirement assets can create estate tax problems for heirs. IRAs, 401K, 403B and other retirement accounts grow tax-deferred, often becoming quite large over the years. It is not unusual for children to lose a substantial portion of their parent’s retirement assets because of estate taxes.

Through proper planning estate taxes can usually be minimized and sometimes even eliminated. Any charitable beneficiary arrangement on all or a portion of your retirement accounts creates an estate tax deduction, therefore minimizing overall estate taxes.

Yet, for most people, estate taxes aren’t the real problem. Income taxes payable on the withdrawal of retirement assets can still create problems for children and other beneficiaries on any retirement benefits received by them. Designating The City Mission as beneficiary of retirement benefits can help to eliminate or minimize these taxes .

Appreciated Securities

The donation of appreciated stock is another easy gifting method with a tax benefit. Appreciated stock may cause a sizable capital gains tax, often large enough to discourage the owner from selling the stock. This stock can be donated to The City Mission or The City Mission Endowment Foundation. This provides a tax savings instead of a tax problem. The full value of the stock can be deducted, subject to certain deduction limitations, without you having to pay any capital gains tax

For more information contact:

Chief Development Officer
Michael Parry
Phone 216-431-3510 ext. 269

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