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.


Download this PDF for More Information