It is our goal for Saint Bernadette to be a tithing parish, giving 11% of all parish income to charities and those in need. In thanksgiving for God’s gifts, each household at Saint Bernadette is asked to prayerfully work toward giving a specific percentage of income based on the 10% Biblical tithe. The tithe might be apportioned as follows:
- 5% to Saint Bernadette Catholic Church
- 1% to the Arlington Diocese
- 4% to charity
Once you are a registered parishioner, you will automatically receive Offertory Envelopes. It usually takes 8-12 weeks to begin the process. You are welcome to use the “starter” envelopes given to you with your welcome packet. Your family’s parishioner number can be obtained the week after you register by calling the parish office, so that you can begin to reference it.
For your convenience, we now offer Faith Direct as an electronic option for your weekly offertory, second collections, building fund, special collections and one-time gifts. Participants have the ability to adjust their giving at any time through the online portal. Simple and convenient, you are encouraged to visit www.faithdirect.net to enroll online or you may elect to complete and mail the paper enrollment form (linked above) – our Saint Bernadette account code is VA70. We also have information available on a variety of different ways you may choose to support the mission of the Church and the good work we accomplish through the many parishioners and programs we offer.
Other Methods of Giving to the Church
- Tax-Free Gifts from IRAs
- Gifts from Retirements Plans
- Gifts of Life Insurance
- Gifts of Appreciated Securities
For more information contact St. Bernadette Finance Committee member, Ed Matricardi, 703-519-7000 or firstname.lastname@example.org.
Disclaimer: The information contained above is general and not exhaustive by nature, so please do not act solely on it. Everyone’s financial situation is different. Federal and state tax laws are complex and constantly changing. Individuals must obtain competent tax and legal consultation concerning their individual situation before acting.
A gift to Saint Bernadette Parish in your will or revocable trust proclaims your confidence that we will continue to pursue our mission and make a difference in the lives of future generations.
A bequest is:
- Easy to arrange
- Does not affect your assets or cash flow during your lifetime
You may have planned your estate through a revocable trust instead of a will. A transfer to Saint Bernadette from your trust will bring you the same tax and planning benefits as a bequest from a will. Your bequest or trust distribution to us can reduce the value of your estate for federal estate tax purposes, and may also be exempt from state inheritance taxes.
You Can Make Your Bequest in Several Ways:
A bequest can deliver a specific dollar amount or asset to the parish, or it can give us a percentage of the balance remaining in your estate after taxes and specific bequests have been paid. It can also be payable if an individual beneficiary is not able to inherit.
Tax Free Gifts from IRA Accounts
Congress has re-authorized legislation that allows donors to make charitable gifts from their IRA accounts without incurring income tax on the withdrawal. If you are age 70½ or older and are required to take minimum withdrawals and you do not need them for personal use, this may be a great way to make a gift to one or more qualified charities. While you cannot claim a charitable deduction for IRA gifts, you will not pay income tax on the amount.
- For traditional IRAs you must be age 70½ or older at the time of the gift.
- Transfers must be made from a traditional or Roth IRA account by your plan provider DIRECTLY to the charity (St. Bernadette Parish, for example). Funds that are withdrawn by you and then contributed do NOT qualify. (Roth IRA distributions may not be taxable if held for five years or more and you qualify based on your age or other factors.)
- Gifts from 401k, 403b, SEP and other retirement plans do not qualify.
- Gifts must be outright. Distributions to donor-advised funds, supporting organizations, or life-income arrangements such as charitable remainder trusts and gift annuities are precluded.
Benefits--Qualified charitable distributions:
- Can total up to $100,000 in each tax year (if your spouse has a separate IRA account, you can each contribute up to $100,000 per tax year);
- Can be excluded from your gross income for federal income tax purposes on line 15a of Form 1040 (no charitable deduction is available, however);
- Can be used to satisfy your Required Minimum Distribution (MRD);
- Are not subject to the 50% of the Adjusted Gross Income (AGI) rule.
Gifts from Retirement Plans
If the largest asset in your estate is your retirement plan, such as a 401(k), IRA, or Keogh, you may be surprised to learn that the IRS may impose income tax on the remaining balance in the account if you bequeath it to a beneficiary other than your spouse.
This tax is in addition to the estate tax that may be imposed on the account. For estates fully subject to the estate tax, the result can be that 70 percent of the value of your retirement plan will be consumed in taxes before your child, relative or friend receives it.
There is a sensible charitable alternative: name Saint Bernadette Parish as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. We won’t pay income tax on our distribution and your heirs will receive their share of your estate without the burden of extra taxes.
Gifts of Life Insurance
Our supporters often overlook the benefits of giving a life insurance policy to the parish. If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a surplus, paid-up policy. Alternately, you could create a gift for the future by taking out a new policy on your life and naming Saint Bernadette as the owner and beneficiary, thus creating an endowment gift from income rather than capital.
You must name us as irrevocable [you can’t change the terms in the future] owner and beneficiary of an insurance policy to secure tax benefits from your gift. A gift of a paid-up policy produces a charitable deduction in the amount of the policy’s cash surrender value or basis, whichever is less. If you create a new policy, we will pay the premiums, and you may deduct your gifts to us that offset those payments.
Gifts of Appreciated Securities
A $5,000 cash gift and a gift of $5,000 in appreciated securities both generate the same charitable deduction. But if you use publicly-traded stocks, bonds or mutual fund shares that you have held for a year or longer to make your gift, you will receive an additional tax benefit: the IRS allows you to make your transfer to Saint Bernadette Parish without recognizing capital gains on the appreciation.
You can thus leverage a larger donation than you could make with cash — and receive a larger tax deduction — by “buying low and giving high.” Your gift of securities is valued as of the day the securities reach our account if your broker transfers them electronically, or the postmark date if you mail them. Your gift value is the average of the high and the low prices for the securities on that day of transfer (for mutual fund shares, it is the net asset value) at the close of business.
Important Tip: Don’t sell the stock first, get professional advice before you do, your individual circumstances will dictate what is best for you. Even though you give us the proceeds as a gift, the IRS will impose capital gains tax on the sale of appreciated securities, wiping out the benefits of this arrangement. On the other hand, if the value of your securities declined you may be entitled to a tax benefit before your gift is made.