Including Church World Service in Your WillOne way for you to support the mission of Church World Service is to include CWS in your Will or Trust. This is sometimes called a bequest. A significant benefit of making a gift through your Will is that it allows you to continue to use the property to be gifted during your lifetime. Another benefit is that by including CWS in your estate you will provide a lasting legacy.
Types of GiftsThere are a number of ways you can make a bequest to Church World Service. You can leave what is called a specific bequest. This involves making a gift of a specific asset such as real estate, stock, retirement account, other property or a gift for a specific dollar amount. For example, you may wish to leave your home or $10,000 to Church World Service. Another kind of specific bequest involves leaving a specific percentage of your overall estate to charity. For example, you may wish to leave 10% of your estate to Church World Service.
Another kind of bequest is called a residual bequest. A residual bequest is a bequest that is made from the balance of an estate after the will or trust distributed the specific bequests. A common residual bequest involves leaving of a percentage of the residue of the estate to charity. For example, you may wish to leave 30% of the residue of your estate to Church World Service.
Estate BenefitsThere are no limitations on bequest gifts. Bequests may be made for a general or specific purpose. All bequests are exempt from federal estate taxes. Most of us no longer have to be concerned about federal estate taxes, but if you have a taxable estate, the estate tax charitable deduction may offset or eliminate estate taxes resulting in a larger inheritance for your heirs.
Suggested LanguageIn order to make a gift through your Will or Trust you should speak with your attorney. Your attorney can help you include a gift to Church World Service in your estate plan. We have provided some basic language to assist you and your attorney.
1. Outright Gifts If you are considering making an outright gift to Church World Service, we recommend the following language: Gift of a Specific Percentage or Dollar Amount
I hereby, give, devise and bequeath ____ percent of my estate or $DOLLARS to Church World Service, a 501c3 non-profit organization located at 28606 Phillips Street, PO Box 968, Elkhart, IN 45615, Federal Tax ID #13-4080201, for the general use and purpose of CWS.
Gift of Specific Personal Property
I hereby, give, devise and bequeath DESCRIPTION OF PROPERTY to Church World Service; a non-profit organization located at 28606 Phillips Street, PO Box 968, Elkhart, IN 45615, Federal Tax ID #13-4080201, for the general use and purpose of CWS.
Gift of Specific Real Estate
I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to Church World Service, a non-profit organization located at 28606 Phillips Street, PO Box 968, Elkhart, IN 45615, Federal Tax ID #13-4080201, for the general use and purpose of CWS.
2. Restricted Gifts If you are considering a gift through your Will, but want to ensure that it will be used for a specific purpose, please let us know. We would be happy to work with you and your attorney to help you identify ways to give so that your charitable objectives can be met. We will also work with you and your attorney to craft language to accomplish your objectives.
In cases where donors are making a restricted gift, we recommend that your attorney include the following provision to give Church World Service flexibility should it no longer be possible for our organization to use your gift as you originally intended:
If, in the judgment of the Board of Directors of Church World Service, it becomes impossible for CWS to use this gift to accomplish the specific purposes of the gift, then CWS may use the income and principal of this gift for such purpose or purposes as the Board determines is most closely related to the restricted purpose of my gift.
NOTE: For gifts in excess of $25,000, Church World Service welcomes conversation about the establishing a named endowment, which will permanently link an individual or family name to the work of CWS. Within certain limitations, the income from named endowments may be directed towards specific program areas such as: All Our Children, Water for All, Food Security, Immigration and Refugees, or Emergency Response Readiness. If you are interested in establishing a named fund, please be in contact with the Director of Gift Planning at CWS.
Is "Uncle Sam" One of Your Unintended Heirs? Think About What Assets You Own to Reduce Estate Shrinkage Due to Income TaxesMaking the decision to leave a gift through your Will to Church World Service is a wonderful first step. What many donors don't think about is that there are significant income tax savings to be realized by giving careful consideration to which assets are used for making gifts to charity.
One of the best assets to pass to charity is your retirement account or annuity. That is because charity, like CWS, does not pay income tax when it receives the retirement account or annuity proceeds. When an individual inherits that same account, they have to pay income tax, which usually means they only end up receiving 60 - 70 % of the intended gift. To deal with this issue, one attorney has suggested using the following language in the will:
I instruct that all charitable gifts, bequests and devises should be made, to the extent possible, from assets that constitute Income in Respect of a Decedent, as that term is defined in the Internal Revenue Code.
Another way to deal with this is to name Church World Service as the beneficiary of the retirement account or annuity. You can do this by completing a "Change of Beneficiary Form" provided by your retirement account's custodian or the insurance company that issued the annuity. If this is something you would like to hear more about please give us a call so we can talk about your specific situation. We also welcome the opportunity to speak with your attorney or financial advisor to discuss this strategy.