The Mother Church as Pass-Through Entity

The Mother Church as a “Pass Through” Entity

Question: I would like to donate to my Branch Church, Association, or other charity through The Mother Church. Also, I might like to ultimately donate to my Branch Church or other charity while receiving income for life from The Mother Church. Can The Mother Church help establish such a giving arrangement?

The Mother Church is unable to receive a donation from a contributor, pay income to the beneficiary, then pass the remaining funds to another charity designated by the donor. The Mother Church cannot act in this way, as a “pass through” entity acting on behalf of the other charity. Some financial institutions may act as “pass through” entities. We recommend speaking with your financial advisor about these institutions.

A charity, such as a Branch Church or Association, may not be the annuitant (the income beneficiary) of a charitable gift annuity.

A charitable remainder unitrust with The Mother Church may be possible for those who would like to give a remainder gift to The Mother Church, while a separate charity beneficiary receives a portion of the income payments (usually 5% of the value of the trust, paid quarterly).  If another charity is designated as a remainderman of the trust, The Mother Church must also be designated to receive at least 50% of the remaining trust funds. Please note that organizations established outside of the United States may not be the remainder beneficiary of a charitable remainder unitrust.

For more information about charitable remainder unitrusts, please click here.

For more information about charitable gift annuities for individuals, please click here.

 

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