The Diocese of Wilmington has joined a national Catholic philanthropic foundation in outlining a future that officials say helps preserve and grow Catholic education and other ministries of the church.
It is a pioneering partnership with the National Catholic Community Foundation (NCCF) to enhance Catholic philanthropy in the diocesan community, said Sheila O’Hagan McGirl, Office of Development director for the diocese. She said the collaboration facilitates financial support for Catholic school tuition assistance programs and the diocese’s Faith and Charity Catholic Appeal ministries by managing charitable gift annuities (CGAs).
A charitable gift annuity is a philanthropic tool that allows donors to contribute significantly to the church and receive fixed payments for life, McGirl said.
“It combines the joy of giving with the security of a lifetime income stream,” she said.
Donors benefit from stable payments, tax deductions and the fulfillment of supporting their faith community, she said.
“It embodies the essence of giving, combining the joy of supporting the faith and the security of a stable lifetime income stream,” McGirl said. The diocese benefits at no cost to itself by entrusting the management of CGAs to NCCF, a non-profit based in Crownsville, Md.
The partnership eliminates administrative concerns and expenses for the diocese and ensures a seamless experience for donors, she said.
Incorporated in 1997, NCCF was founded by the Raskob Foundation for Catholic Activities when its members conceived the idea of linking Catholic philanthropy to the community foundation model whose scope would be national and whose governance would be Catholic laity. Its board of trustees chairman is Dana P. Robinson, a member of the Raskob family.
Aside from the Archdiocese of the Military, Wilmington is the first diocese in the nation to be among the 30 other organizations to provide CGAs for their donors via NCCF
“Which is a point you should shout from the rooftops,” Robinson said, “because the rest of the church in the country — in many ways — should be following the lead of the Diocese of Wilmington.”
Robinson said the arrangement eliminates any risk for the diocese.
“That’s the benefit for the diocese,” he said. “The diocese can connect a donor with an organization that can provide a CGA. The fundamental involvement of the diocese is that the purpose of the CGA is to support Catholic education (tuition assistance) or Faith and Charity ministries.”
As an example, at current rates, a 70-year-old donor who contributes $10,000 will receive $590 in annual payments, he said
“Today, a donor cannot pay the tuition at a Catholic school and get the tax deduction because it’s a conflict of interest,” he said. “One way a donor who is interested in Catholic education – not just for his kid, but kids generally – is to contribute to a fund that supports Catholic education. And they can give $10,000 outright, and they give up the income and give up the ownership. And that’s wonderful. But another way is for the donor to retain the income that he’s getting from that asset – that $10,000, for life – on a tax-exempt basis. And on his death, the money goes into the fund to support Catholic education. So, if enough people in this generation do it, a generation from now there will be a pool of money in the diocese to provide tuition for kids who otherwise couldn’t afford it.”
“If the $10,000 runs out, NCCF has to dip into its own pockets to meet that obligation,” Robinson said. “This is the advantage for the diocese. The diocese does not have the liability to pay. NCCF has the liability.”
“Hence the partnership,” McGirl said.
There are about 30 organizations – Eternal World Television Network (EWTN) is one of those with among the biggest relationships with NCCF. Aside from EWTN, donor partners include Cross Catholic Outreach, Iona College, Mount St. Mary College and others.
“The Diocese of Wilmington is honored to be the first diocese in the United States to engage in such a transformative partnership,” Bishop Koenig said in a statement. “This collaboration is more than a financial arrangement; it’s a testament to our commitment to creating a culture of philanthropy and stewardship within our community. Our collaboration provides a way to support Catholic schools and our Catholic church into the future.”
“Legacy giving, epitomized by charitable gift annuities, represents an enduring commitment to our faith,” McGirl said. “Just as we plan our estate for our children, this provides a way to plan for our Catholic faith. Leaving a legacy is not merely a financial decision; it’s a testament to our dedication to the spiritual nourishment of generations to come — the future of our Catholic church.”
The Diocese of Wilmington Faith and Charity Catholic Appeal supports ministries including Catholic education, pastoral services, Catholic Charities and administration and communications, including The Dialog.
For more information about the program, phone Sheila McGirl at 302-573-3121