By Reagan Scott
(SNR) – While cemeteries bring in revenue with plot sales and burial costs, this income cannot be guaranteed. Whether burials and plot sales have slowed, the cemetery is full or a parish has closed, the land must still be kept up and maintained.
When considering ways to support diocesan cemeteries financially, traditional routes like direct donations to a cemetery or parish may come to mind. What people may not realize is the Catholic Foundation of Southern Nebraska offers a wide range of giving methods to fit every gift and stage of life.
With the goal of helping people give charitably in a way that is meaningful to them, all of their advisory services are free of charge.
“We’re a philanthropic fiduciary, which means we’re obligated by law to act in your best interest,” explained Scott Yates, a gift planning officer for the Catholic Foundation and member of the board of directors at Calvary Catholic Cemetery in Lincoln.
A couple of the Catholic Foundation’s giving options are outlined below.
Endowments allow a principal donation to be invested, with a percent of all earnings thereafter to be distributed to the donor’s chosen non-profit entities each year. Yates said this ensures a permanent, self-sustaining source of funding.
In fact, state legislation requires cemeteries to maintain a perpetual care fund with a minimum balance of $2,500. The principal of this fund must be invested to ensure future funds for the cemetery.
Yates said, “For this reason, endowments are a logical choice in ensuring future long-term growth, sustainability and maintenance for cemeteries.”
The Catholic Foundation has two endowments specifically earmarked for cemeteries — the Calvary Cemetery/Perpetual Care Fund and the St. Patrick Cemetery Perpetual Care fund, which supports St. Patrick Cemetery in Utica.
Yates explained that cemeteries have two kinds of expenses — active needs and passive needs. Weekly mowing would fall under the category of active needs, and these are best covered with funds from endowments, which the parish receives on a recurring basis.
“However,” Yates said, “endowment funds are restricted funds, meaning only a small portion of the earnings (typically around four percent) may be spent.”
This means that money for passive needs, which include large, but infrequent, projects may exceed an endowment’s distributed funds.
“This can be problematic for a cemetery when larger needs arise such as maintaining the cemetery’s entrance, fencing, roadways, statuary, trees and memorials,” Yates said.
For these needs, the Catholic Foundation offers another giving vehicle: Donor Designated Funds (DDFs).
DDFs are established to benefit one entity and, like endowments, are invested. The difference is that the funds are completely liquid.
“You may treat a DDF like an endowment, only drawing off the earnings, but all the money is accessible should an immediate and unexpected need arise,” Yates said.
He also explained that DDFs can accept non-cash assets such as grain or required minimum distributions from individual retirement accounts (IRAs), which can provide significant tax benefits to donors.
There are currently four DDFs for cemeteries through the Catholic Foundation for Our Lady of Assumption Cemeteries in Deweese, Sacred Heart Cemetery in Lawrence, Saint Joseph Cemetery in Agnew and Saint Stephen Cemetery in Lawrence.
Donations can be made to all previously mentioned funds at catholicgift.org. Individuals interested in working with the Catholic Foundation for their own giving needs can contact 402-488-2142 for information.
