Planned giving for churches is a program that invites parishioners to leave gifts through wills, beneficiary designations, retirement accounts, and other assets, usually received after the donor's lifetime. For a parish in the Diocese of Phoenix, it's often the largest source of future support, and it never shows up in the Sunday collection. The Catholic Community Foundation helps parishes build these programs around legacy and estate gifts.
What Is a Church Planned Giving Program?
A Gift Arranged Now, Received Later
A planned gift is a contribution arranged in the present and received at a future date, most often through a will, trust, or beneficiary form. A planned giving program is how a parish asks for those gifts and honors the people who make them. Most parishioners have never been asked. A Mesa parish likely has dozens of families who would say yes. The Catholic Community Foundation helps parishes across the Diocese of Phoenix make that ask well.
Why the Offertory Isn't Enough
The offertory pays this year's bills. It can't secure the next fifty years. Cash is also the least efficient gift, because most parishioners' wealth sits in IRAs, homes, and stock. The Catholic Community Foundation notes that tax-deferred retirement accounts are often the most advantageous assets to leave to charity, since a charity owes no income tax on them while heirs would.
How Do You Start a Planned Giving Program at Your Parish?
Five Steps for Pastors and Finance Councils
Starting is simpler than councils expect:
- Approve a short written gift acceptance policy.
- Decide where gifts will land, such as a parish endowment.
- Choose the gifts you'll promote: bequests, IRA and life insurance beneficiary designations, appreciated stock, and real estate.
- Host an education night.
- Thank every donor who tells you about a gift.
A Glendale parish can finish the first three steps in one council meeting. Then the real work begins.
Give Every Gift a Place to Land
The difference between a permanent endowment and a quasi-endowment is that an endowment's principal stays invested forever, while a quasi-endowment lets the parish reach principal if a real need arises. The Catholic Community Foundation already manages endowment funds for 98% of parishes in the Diocese of Phoenix, with a $20,000 minimum to open one. Its Endowment Drives page also offers up to $25,000 in dollar-for-dollar matching funds for a parish's first-year drive (terms apply). Start there.
How Can a Parish Recognize Legacy Donors?
Start or Join a Legacy Society
A legacy society is a group that honors people who have included a charity in their estate plans. The Catholic Community Foundation's Perpetual Light Society honors donors who include parishes, schools, and ministries in their estate plans, and the Foundation says members' names are honored perpetually with prayers offered in their memory. A Verde Valley parish can build its own list or invite donors to join. Both work.
Let the Foundation Carry the Paperwork
Most business managers can't run a gift-planning office. They don't need to. The Catholic Community Foundation hosts free Get Your Affairs in Order seminars at parishes and schools, offers one-on-one donor consultations, and connects families with Catholic estate attorneys. Lifetime gifts of property also count: under IRS rules on charitable contribution deductions, donors who itemize may generally deduct the fair market value of property given to a qualified organization. Parishes from Kingman to Lake Havasu City can tap this support across the Diocese of Phoenix.
Frequently Asked Questions
Q: Does a small parish need a planned giving program?
A: Yes, because a single bequest or IRA beneficiary designation can outweigh years of offertory growth.
Q: What's the easiest planned gift for a parishioner to make?
A: A beneficiary designation is usually the easiest, since a parishioner can name a parish endowment on an IRA or life insurance form without rewriting a will.
Q: Who manages the gifts once they arrive?
A: The Catholic Community Foundation can receive and invest them in a parish endowment, acting as fiduciary under Arizona's Management of Charitable Funds Act.
Build a Legacy Program Your Parish Can Count On
Planned giving for churches turns a lifetime of stewardship into support that outlives everyone in the pews. When your pastor, finance council, or business manager is ready to begin, the Catholic Community Foundation's team in Tempe is here to help. Reach out through our contact page or call us at 480-651-8800.