Planned Giving through Private Foundations
Last Sunday, Bishop Lambert challenged parishioners to make a plan to support St John’s mission in future generations by participating in The 1841 Society. As Chairman Scott Howard noted last week, there is no minimal requirement, and there are many different ways to make a planned gift, according to one’s capacity and needs. This week, parishioner Dolly Chisholm, an attorney and Chancellor of St. John’s Church, provides insight on one way of making a larger gift.
The late Homer and Ruth Peeples were lifelong members of St. John’s Church, who established a private foundation for the purpose of supporting the maintenance, repair, and improvement of the buildings at St. John’s. Thanks to their generous forethought, our historic buildings are not a burden to us but a blessing. (Later this fall, a plaque will be erected to honor their memory as benefactors of St John’s.)
Philanthropy like theirs has long played a vital role in the life of the Church. Many faithful parishioners seek ways to ensure their values and devotion continue to support their church even after they pass. One powerful tool for achieving this is the establishment of a private foundation. By establishing a private foundation during one’s lifetime and directing its assets to benefit a church upon death, a donor can create a lasting legacy that aligns with their beliefs and priorities, much like Ruth and Homer Peeples did for St. John’s.
What is a Private Foundation?
A private foundation is a nonprofit organization typically funded by a single individual, family, or estate. It exists to make grants to charitable causes and is governed by IRS rules under Section 501(c)(3). Unlike public charities, which receive broad public support, private foundations are usually funded by one source and are subject to oversight and minimum distribution requirements.
Advantages for the Donor
1. Enduring Legacy
A private foundation allows a donor to support the church in perpetuity. Whether funding music ministry, youth ministry, capital improvements, or charitable outreach, the foundation can ensure that the donor’s values and charitable intent continue for generations. The Peeples Foundation was created to fund repairs and improvements for the properties on the St. John’s Campus on an annual basis, which has been a tremendous relief to the Church’s budget; a true blessing.
2. Control and Flexibility
The founder can define the mission of the foundation and establish clear guidelines for how funds are to be used. For example, in the case of the Peeples Foundation, the mission is to support the buildings.
3. Tax Benefits
Contributions to a private foundation are generally tax-deductible, subject to IRS limits. Upon death, assets directed to the foundation may reduce the size of the taxable estate, offering estate tax advantages for larger estates.
4. Stewardship and Structure
A private foundation offers a formal structure for charitable giving. The donor can name trusted individuals—family or professionals—to serve as trustees or board members, ensuring the foundation operates with integrity and transparency.
Benefits to the Church
For the church, a private foundation provides a stable, long-term source of funding. Unlike annual giving, which can fluctuate, a foundation can offer consistent support through investment income and planned distributions. This funding can help maintain historic properties, expand outreach programs, enhance worship, and ensure the church’s sustainability in an era when traditional giving patterns are changing.
An Enduring Testimony
A private foundation created to benefit a church is a profound act of faith, generosity, and foresight. It transforms a donor’s legacy into a permanent source of support, ensuring that the mission of the church continues. With proper planning, such a foundation becomes not just a financial tool, but a testament to a life well lived in service to God and His Church.
– Dolly Chisholm
If you have questions about Planned Giving, please speak to one of the members of the 1841 Society committee: Scott Howard (chairman), Dolly Chisholm, Rick Wright, Rusty Ross, Bishop Paul Lambert, Fr. Dunbar (ex officio), Graham Sadler (ex officio).