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Parish Expansion Fundraising Project. QUESTIONS THAT HAVE BEEN ASKED Question 1. I understand the prevalent feeling is that the Campaign is definitely going to be a success. However, what will happen …More
Parish Expansion Fundraising Project.
QUESTIONS THAT HAVE BEEN ASKED
Question
1. I understand the prevalent feeling is that the Campaign is definitely going to be a success. However, what will happen to my contribution if, for some reason, the Campaign does not succeed?
Answer
To protect the integrity of St. Michael the Archangel, Our Lady of Success Academy and all donors, a number of safety options are being implemented. For example, all contributions to the “Faith in Our Future Campaign” will be restricted (designated). By establishing the Naming Opportunities, all contributions to your specific Naming Opportunity, according to IRS regulations must be used for that purpose. Additionally, by establishing the Campaign the way we have, your contribution will automatically be deposited into an escrow account. That means that no restricted funds can be expended until the Project has enough committed funds and the Town of Brookhaven’s Planning and Building Departments have authorized us to proceed. If for some reason, neither of the above happens, the escrow money will be returned to the donors. Simply put, your contribution is in no danger of being lost. You would receive every penny back. There is no risk.
Question
2. How are all contributions accounted for and applied to the Campaign?
Answer
Once again, to protect the integrity of the Church, the School and all donors, regulatory accounting procedures have been implemented. To that end, a separate bank account has been established for the Project, entitled “Faith in Our Future Campaign”. All contributions will be made out to “Faith in Our Future Campaign”. When contributing to this Campaign there shall be nothing made out to the Church or the School, only to the Campaign. By establishing the separate account, the Campaign is in compliance with all regulations and prevents a situation of co-mingling of funds. The expenses for the project will be disbursed from the “Faith in Our Future Campaign” account.
Question
3. Can I pay over a period of time? If so, how long?
Answer
Absolutely, all commitments over $2,500 may be paid over a period of up to 3 years. Additionally, on a case to case basis commitments larger than $25,000 may be paid over a period of time, up to 5 years. Each donor may approach Father Robinson or the Parish Coordinator Tom Gabriele to discuss a pledge payment schedule. It is important that each donor make a commitment and/or pledge that they are comfortable with and deem appropriate.
Question
4. Besides cash or check, are there other ways I can help?
Answer
Once again, absolutely. In the “Faith in Our Future Campaign” booklet, a special page is devoted to listing a series of gift options. This list illustrates how a donor can assist the Campaign in addition to regular donations of cash or check. In all cases, the gift options illustrate how a donor can maximize their commitment by leveraging an asset that is utilized to minimize and in some cases eliminate Federal and State taxes. Each donor is encouraged to speak to Father Robison or the Parish Coordinator who will in turn set up an appointment to have their potential tax saving gift reviewed which will result in assisting donors in ways they could never imagine.
Question
5. I want to give a nice donation to really help this Campaign. However, I do not want to decrease my estate to where my children and/or grandchildren will lose some of their inheritance. Is there anything I can do to help the church and at the same time protect my heirs?
Answer
Most definitely, again by utilizing the gift options, a donor can make a sizable contribution to the Campaign through a Planned Giving Program and realize tremendous tax savings. Then by expending a small portion of the tax savings take advantage of a Wealth Replacement Trust to make their estate completely whole again and thus protect their heirs. An example is of a donor who may have appreciated assets of stocks, bonds, IRA’s, or real estate and is subject to massive capital gains tax. A solution (using any amount of contribution levels such as $10,000 - $25,000 - $50,000 - $100,000 or more) is making a gift of the property to the Campaign which is a 501-C-3 not for profit entity established with the IRS. The donor will immediately receive an income tax donation (may be spread over 5 years), and there will be no capital gains tax. With all the tax savings, the donors will purchase a Wealth Replacement Trust, through the use of an insurance product, for the value of their donation which immediately goes right back to their estate, thereby making the value of the estate back to the original value which protects the heirs of the estate and saves the donor enormous tax liabilities. Potential donors should speak to Father Robinson or the Parish Coordinator to set up an appointment for this really unbelievable way to donate and make a significant contribution. Other ways you can help this Campaign are by: be a leader in this Campaign by being one of the early donors and become an ambassador for the Campaign and encourage others to participate.
Question
6. Once the project is completed, are there plans in place to sustain the school by providing for the future?
Answer
Yes. As mentioned before, a tremendous effort has gone into the planning process. It is vital to provide for the future financial stability of the School and of course for the Church. To accomplish this important goal, the “Faith in Our Future Campaign” has two components: 1.) A Current Campaign – to secure immediate funds to complete the facility and, 2.) build an Endowment Fund that will ensure the future financial stability of the School and Church. This fund is established through the use of Planned Giving Programs such as; 1.) Wills, Legacies, and Bequests 2.) Use of Insurance programs and, 3.) Charitable Remainder Trusts. All of the above information is available to all parishioners in our ongoing presentation series that are conducted weekly in the Rectory, or by seeing Father Robinson or the Parish Coordinator who will set up an appointment.
Question
7. When will the Project be completed?
Answer
There are two determining factors that must be satisfied before the Project can put a shovel in the ground. First and foremost, is that all the necessary funds have been committed to allow completion. Second, we cannot begin until the Town of Brookhaven’s Planning and Building Departments have issued all necessary permits and approvals. Our goal is to have both of the above in place before the end of the summer. After securing the above, the full construction period is anticipated to last six months. The goal is to have the project completed and our students in their new class rooms by the end of the first quarter of 2012.
QUESTIONS THAT HAVE BEEN ASKED
Question
1. I understand the prevalent feeling is that the Campaign is definitely going to be a success. However, what will happen to my contribution if, for some reason, the Campaign does not succeed?
Answer
To protect the integrity of St. Michael the Archangel, Our Lady of Success Academy and all donors, a number of safety options are being implemented. For example, all contributions to the “Faith in Our Future Campaign” will be restricted (designated). By establishing the Naming Opportunities, all contributions to your specific Naming Opportunity, according to IRS regulations must be used for that purpose. Additionally, by establishing the Campaign the way we have, your contribution will automatically be deposited into an escrow account. That means that no restricted funds can be expended until the Project has enough committed funds and the Town of Brookhaven’s Planning and Building Departments have authorized us to proceed. If for some reason, neither of the above happens, the escrow money will be returned to the donors. Simply put, your contribution is in no danger of being lost. You would receive every penny back. There is no risk.
Question
2. How are all contributions accounted for and applied to the Campaign?
Answer
Once again, to protect the integrity of the Church, the School and all donors, regulatory accounting procedures have been implemented. To that end, a separate bank account has been established for the Project, entitled “Faith in Our Future Campaign”. All contributions will be made out to “Faith in Our Future Campaign”. When contributing to this Campaign there shall be nothing made out to the Church or the School, only to the Campaign. By establishing the separate account, the Campaign is in compliance with all regulations and prevents a situation of co-mingling of funds. The expenses for the project will be disbursed from the “Faith in Our Future Campaign” account.
Question
3. Can I pay over a period of time? If so, how long?
Answer
Absolutely, all commitments over $2,500 may be paid over a period of up to 3 years. Additionally, on a case to case basis commitments larger than $25,000 may be paid over a period of time, up to 5 years. Each donor may approach Father Robinson or the Parish Coordinator Tom Gabriele to discuss a pledge payment schedule. It is important that each donor make a commitment and/or pledge that they are comfortable with and deem appropriate.
Question
4. Besides cash or check, are there other ways I can help?
Answer
Once again, absolutely. In the “Faith in Our Future Campaign” booklet, a special page is devoted to listing a series of gift options. This list illustrates how a donor can assist the Campaign in addition to regular donations of cash or check. In all cases, the gift options illustrate how a donor can maximize their commitment by leveraging an asset that is utilized to minimize and in some cases eliminate Federal and State taxes. Each donor is encouraged to speak to Father Robison or the Parish Coordinator who will in turn set up an appointment to have their potential tax saving gift reviewed which will result in assisting donors in ways they could never imagine.
Question
5. I want to give a nice donation to really help this Campaign. However, I do not want to decrease my estate to where my children and/or grandchildren will lose some of their inheritance. Is there anything I can do to help the church and at the same time protect my heirs?
Answer
Most definitely, again by utilizing the gift options, a donor can make a sizable contribution to the Campaign through a Planned Giving Program and realize tremendous tax savings. Then by expending a small portion of the tax savings take advantage of a Wealth Replacement Trust to make their estate completely whole again and thus protect their heirs. An example is of a donor who may have appreciated assets of stocks, bonds, IRA’s, or real estate and is subject to massive capital gains tax. A solution (using any amount of contribution levels such as $10,000 - $25,000 - $50,000 - $100,000 or more) is making a gift of the property to the Campaign which is a 501-C-3 not for profit entity established with the IRS. The donor will immediately receive an income tax donation (may be spread over 5 years), and there will be no capital gains tax. With all the tax savings, the donors will purchase a Wealth Replacement Trust, through the use of an insurance product, for the value of their donation which immediately goes right back to their estate, thereby making the value of the estate back to the original value which protects the heirs of the estate and saves the donor enormous tax liabilities. Potential donors should speak to Father Robinson or the Parish Coordinator to set up an appointment for this really unbelievable way to donate and make a significant contribution. Other ways you can help this Campaign are by: be a leader in this Campaign by being one of the early donors and become an ambassador for the Campaign and encourage others to participate.
Question
6. Once the project is completed, are there plans in place to sustain the school by providing for the future?
Answer
Yes. As mentioned before, a tremendous effort has gone into the planning process. It is vital to provide for the future financial stability of the School and of course for the Church. To accomplish this important goal, the “Faith in Our Future Campaign” has two components: 1.) A Current Campaign – to secure immediate funds to complete the facility and, 2.) build an Endowment Fund that will ensure the future financial stability of the School and Church. This fund is established through the use of Planned Giving Programs such as; 1.) Wills, Legacies, and Bequests 2.) Use of Insurance programs and, 3.) Charitable Remainder Trusts. All of the above information is available to all parishioners in our ongoing presentation series that are conducted weekly in the Rectory, or by seeing Father Robinson or the Parish Coordinator who will set up an appointment.
Question
7. When will the Project be completed?
Answer
There are two determining factors that must be satisfied before the Project can put a shovel in the ground. First and foremost, is that all the necessary funds have been committed to allow completion. Second, we cannot begin until the Town of Brookhaven’s Planning and Building Departments have issued all necessary permits and approvals. Our goal is to have both of the above in place before the end of the summer. After securing the above, the full construction period is anticipated to last six months. The goal is to have the project completed and our students in their new class rooms by the end of the first quarter of 2012.