Legacy Gifts at MDUUC

JOIN OUR LEGACY CIRCLE TO NURTURE, GROW & SUSTAIN MDUUC IN A LASTING WAY

A Resource Guide from The Legacy And Endowment Committee 

MDUUC roots are strong, and we are branching out in new directions as we live our values and mission to
transform ourselves and our world. We understand that each family/individual has unique needs. Members of the MDUUC Legacy and Endowment Committee are here to offer you support and resources in protecting yourself, your loved ones, your assets, and your wishes for the future of your assets.

The Basics:

Endowments are gifts you make during your lifetime; these gifts can be 

made from stock, the required minimum distribution (RMD) from your IRA, to share a bonus, to celebrate a birthday or anniversary and etcetera. Advantages of giving during your lifetime are that you can claim a tax deduction now which is very helpful if you have appreciated funds. You can save on management fees, and  the principal will be managed and maintained in the Endowment Fund while the income will be distributed to the church each year. 

A Legacy gift occurs after your lifetime and the following information is pertinent to that. 

YOUR LEGACY GIFT CAN SHAPE THE FUTURE 

The care of your possessions, or ‘estate,’ in your lifetime, is financial management. Deciding on the disposition of  your estate, is financial planning. You plan for the comfort and welfare of people in your life and before that for  your own standards of living and security. The more modest your estate the greater the need for careful planning  so that it can stretch further and help those closest to you. 

Good estate planning depends on good management of your assets during your lifetime and planning for their  management in case of disability or sickness, (i.e. Advanced Health Care Directive, Powers of Attorney, Long Term  Care Insurance). You may make plans for your spouse, your children 

and grandchildren and others close to you. A next step involves your philanthropic and charitable interests  including the Mt. Diablo Unitarian Universalist Church. In this way you can influence the future after your lifetime. 

The first step is to look at your resources and assets and this includes more than money in the bank, stocks, and  bonds. Other assets have value too, such as your home, real estate, insurance, business investments and retirement  accounts. 

MAKING A BETTER WILL

A Will and a Trust are legal documents which transfer some of the assets in your name to your beneficiaries after  your death. This can include charitable interests. It also names the executor who will carry out the terms of your  will. Many people have both a Will and a Trust; your legal advisor 

can respond to your needs. If you do not have a Will / or a Trust your assets will pass by “Intestacy” which is a  plan established by the Legislature of the State of California. 

Three common methods exist by which some of your assets are transferred to your heirs after your death:  Beneficiary designation (which includes charitable interests such as MDUUC) such as life insurance, pensions, IRAs  and 401(K) plans, jointly owned property with rights of survivorship and those designations specifically named in  a Will or Trust. 

There are Eight Ways to establish Bequests in a Will: 

  1. Specific bequest. “I give my nephew John my sailboat.” 
  2. General bequests This is usually a gift of a stated amount of money. “I give my sister Naomi $50,000.”
  3. Contingent bequests. “I give $40,000 to my grandson Edgar providing he has completed or is enrolled  in a 4-year college.” 
  4. Residuary bequest. This is a gift of all the “rest, residue, and remainder “of your estate after all other  taxes, expenses, debts, and bequests have been paid. A percentage of this can be given to MDUUC. 

These above four methods can apply to specific persons or to charitable organizations. The following four items  can be used when you plan a charitable bequest. 

  1. Unrestricted bequest. This is a gift for the general purposes of the charitable organization and may be  used at the discretion of the board. MDUUC will hold the funds permanently in the Endowment Fund.
  2. Restricted bequest. This gift allows you to specify how the funds are to be used but it is best to consult  with the organization to be sure your intent can be carried out. 
  3. Honorary or Memorial bequest. 
  4. Endowed bequest. This requires the charity to hold the funds permanently in an Endowment Fund and to  use only the annual investment or a small percentage each year. This is a frequent designation for  MDUUC. Creating this endowment means that your gift continues indefinitely and you will have a lasting  legacy. You will also avoid paying administrative fees. 

TAX THOUGHTS FOR CURRENT GIVING 

When you consider giving to the Endowment Fund, Maintenance Fund, Memorial Fund etc. or for your pledged  amount, you can maximize your gift by using your Required IRA Distribution or by giving Appreciated Assets such  as Stocks and Bonds or Tangible Items such as a valuable collection or Real Estate. You may avoid taxes (up to a  certain amount) by having the gift go directly to MDUUC. Because assets such as an IRA consist of Deferred  Income an heir will owe taxes on this; a charitable contribution will not. The simplest way is to name MDUUC as a  beneficiary on a beneficiary designation form with the company that holds the retirement plan. Gifts of paid-up  life insurance or policies that are no longer needed are excellent ways to make a tax-deductible gift now without affecting your current income. Charitable Gift Annuities are a way to make a tax-deductible gift now and receive  annual payments for life - the life of a second beneficiary. The amount is determined by the size of the gift and the age of the donor. You no longer need to pay the administrative fees for the investment of this amount. Remember a bequest to the MDUUC Endowment is entirely free of federal estate tax. Ask us for more details you may wish. 

WE CAN ADVISE YOU ON MANAGING YOUR ESTATE AND HOW TO COMMUNICATE YOUR  WISHES TO YOUR EXECUTOR 

The members of the Legacy and Endowment Committee are available to meet with you (and your advisor or  family) to provide more information and answer your questions.  

MDUUC INVESTMENT POLICY 

Endowment Funds are managed by an independent investment firm following the Investment Policy set by  MDUUC, a conservative investing policy that emphasizes the preservation of capital. Annually the endowment distributes a percentage of its income to the MDUUC for use in projects of their choosing. This information is not  legal or tax advice and is not intended to substitute for the advice of a trusted legal or financial advisor. 

JOIN THE MDUUC LEGACY CIRCLE 

The Legacy Circle recognizes MDUUC members and friends who have included the church as beneficiaries in their  financial plans. They meet socially several times a year and for more information. These generous individuals will  have a legacy that will benefit the Church again and again, for generations to come. We hope to have you join us!  

Download Legacy Form

For more information please email legacy@mduuc.org or contact Committee Chair, David Stanley:

  • Committee Chair: David Stanley 925-239-6312, stanleydav@gmail.com 
  • Committee Members: Bob Boster, Tom Adams, Karl Livengood, Elizabeth Dietsch, and Suzanne Lofquist.