The passing of the offering plate has been a sacred rhythm in worship as we respond to His amazing grace. Over the years, the complexity of our financial lives generally increases beyond bank accounts to assets such as retirement accounts, real estate and businesses. This means that for many of us our capacity to be generous is no longer tied strictly to a weekly pay cheque.
Canada is undergoing its largest intergenerational wealth transfer in history, with an estimated $1 trillion or more in personal assets which includes real estate and investments passing from the silent generation and baby boomers to younger generations between 2023 and 2026. Estimates suggest this figure could reach $3 trillion over the next decade.
If we only talk about giving through earnings, we miss the opportunity to steward the true abundance God has given us. The Three Offering plates is a concept that can be used to move from “maintenance” giving to “legacy giving” ensuring that the church and Christian charities remain a lighthouse for generations to come.
Offering Plate #1: Earned Income
Represents regular income such as wages, salary, and retirement funds. Historically, Christians have tithed a portion to their church and other causes such as Christian schools.
Offering Plate #2: Capital Assets
These assets are held for long-term use and has value when sold. These include savings accounts, retirement accounts, life insurance policies and proceeds from stocks, bonds, real estate, and business sales.
Offering Plate #3: Estate Gifts
When someone passes, all their possessions are generally converted to cash including life insurance and then distributed. Many of you have given by way of time, treasures, and talents to causes that you believe in; why not do so when you pass away?
Something to ponder is “The life you leave should reflect the life you lived.” One concept is naming a child named ‘charity’ in your will. Rather than dividing up your estate by the number of children you have, consider dividing up your estate by the number of children you have + one additional child known as ‘charity.’ So, if you have four children, you will divide your estate by five with the fifth ‘child’ being the charities you would like to support. Alternatively, you could consider a 10% tithe of your estate to charities or depending on the circumstances, a much larger portion. You could designate that the charities use the funds for a specific purpose or let the charity decide.
All three offering plates are excellent ways or reduce tax. Alberta residents benefit from a charitable tax credit in Canada of 50% which offsets the top marginal tax rate of 48%.
Giving to charities now and in your will may help transform this world. The charitable tax credit provides added incentive.
Jim Hummel, CFP® CKA®