Giving by Charitable Trust
Can I create a charitable trust to fund the work of Jesus at the Abbey?
Yes, creating a Charitable Remainder Trust (CRT) is a great way to meet your giving needs
to Jesus' work, while creating a reliable source of retirement income for you. Remember the
parable Jesus taught of the ten servants and the prince that left each of them some money to
invest until his return. Nine of them invested the money left in their care in order to further
the work of the prince in increasing his kingdom. But one servant who only received one
talent buried the money in the ground and it gained nothing. The prince was wrought at the
foolish and evil servant who choose to follow his fears instead of trusting in his master's
A Charitable Remainder Trust (CRT) is an irrevocable agreement that provides numerous
advantages, especially when gifting appreciated assets. When a CRT is created, capital gains
tax can be avoided and you can receive an income tax charitable deduction on a portion of the
value of the gift. Since the gift is irrevocable, it is removed from your estate, thereby avoiding
potential gift and estate taxes.
While wills and other gift tools allow the the work of spreading Jesus' teachings after you
are gone, a Chartable Remainder Trust allows you to actually participate in the blessing of
empowering the works taught by Jesus while you are still alive and can witness for yourself
the blessing you have made possible in the name of the Holy Spirit.
As Jesus taught in his parable true Christians choose wisely through the power of Holy
Spirit, while the false believers will be exposed at the coming of the kingdom and banished for
all time with nothing. What a blessing that the Holy Spirit has provided safe and secure ways
for each of us to participates in the coming kingdom while providing for our comforts in this
life as well.
How are you cared for while funding Christ's work?
In addition to helping Jesus, you get several big tax advantages from this arrangement.
You can take an income tax deduction, spread over five years, for the value of your gift to
When the trust property eventually goes to the charity outright (at your death or the end of
the payment period you specified), it's no longer in your estate -- so it isn't subject to federal
Capital Gains Tax
With a charitable trust you can turn appreciated property (property that has gone up
significantly in value since you acquired it) into cash without paying capital gains tax on the
A charity can sell any non-income-producing asset in a charitable trust and uses the
proceeds to buy property that will produce income for you. Because charities, unlike
individuals, don't have to pay capital gains tax, if the charity sells your property, the proceeds
stay in the trust and aren't taxed.
Sarah owns stock worth $300,000. She paid $20,000 for it 20 years ago. She creates a
charitable trust, naming the Abbey of the Most Holy Mother as the charity beneficiary, and
funds her trust with her stock. The Abbey sells the stock for $300,000 and invests the money in
a mutual fund. Sarah will receive a predetermined yearly income from this $300,000 mutual
fund the for the rest of her life. Had Sarah sold the stock herself, she would have had to pay
capital gains tax on her $280,000 profit, but as no capital gains tax is assessed against the
church Sarah will have income, potentially free from or with greatly reduced tax burdens,
while seeing her gifts benefit the work of Jesus today when she is still alive to enjoy it.
Receiving Income From the Trust
When you set up a charitable remainder trust, there are two basic ways to structure the
payments you will receive.
You can receive a fixed dollar amount (an annuity) each year in an amount your specify
when you make give your gift..
Percentage of Trust Assets
You can set your annual payment as a percentage of the value of the current worth of the
trust property. For example, your trust document could specify that you will receive 7% of the
value of the trust assets yearly. Each year the trust assets will be reappraised, and you will
receive 7% of that amount.
Contact the Abbey to learn how you can invest in the work of Jesus while allowing
the Holy Spirit to ensure your financial comfort for years to come.