How Can Financial & Stewardship Ministries Help Me?
• Assisting the UNION RESCUE MISSION to become better STEWARDS of their RESOURCES
• Assisting the UNION RESCUE MISSION to become better STEWARDS of their ESTATES
Why People Give?
• They feel a sense of Duty.
• They pay back a “Debt”.
• They want to save Taxes.
• They want to leave a Legacy.
• They Obey Biblical commands.
• They see a Need.
Tax Concerns
• Unlimited Charitable Donations
• For most gifts, income tax deduction is cost basis up to 50% of adjusted gross income to public charity.
• For appreciated gifts, income tax deduction is fair market value up to 30% of adjusted gross income to public charity.
• Excess charitable deductions can be carried over for 5 more years on income tax return.
• Different rules apply for private foundation than for public charities.
Types of Gifts
• Current Gifts (Principal spent)
• Endowment (Spend only income)
Endowment Fund
• A Lasting Legacy
• Benefit church, school, agency, mission offering, Cooperative program, etc.
• If you use the Arkansas Baptist Foundation, it can include smaller amounts to non-Baptist charities.
Donor-Advised Fund
• Donor makes gift now and receives credit now
• Makes requests of the administrator for “grants” to charities
• Can pass privilege on to other family members or friends
• Administration options
Charitable Techniques
• Bequests
• Giving Appreciated Assets
• Bargain Sales
• Gift Annuities
• Charitable Remainder Trusts
• Charitable Lead Trusts
Charitable Techniques – Bequests
• Gifts at Death by Will or Trusts
• Gifts at Death by Beneficiary Statement
• Language is very important in estate documents!
• Render less to Caesar – give maximum amounts to children estate-tax free (currently $1.5 million from each parent)
• Give all excess amounts to the Union Rescue Mission or charities of choice
• Pay no ESTATE TAX
Charitable Techniques – Bequest of Life Insurance
Charitable Techniques – Bequest of Retirement Assets
Charitable Techniques – Giving Appreciated Assets
• Stocks
• Bonds – not U.S. Savings Bonds
• Mutual Funds
• Real Estate
Charitable Techniques – Charitable Remainder Trusts
• Sometime called the “Give it Twice” Trust because income goes to family for lives or term and reminder goes to charity.
• Tax Benefits: Bypass Capital Gains Tax, Income Tax Deduction, Estate Tax Savings
• Non-Tax Benefits: Personal Satisfaction, Possible Increased Income, Separates Headaches from Benefits
Charitable Techniques – Charitable Lead Trusts
• Specific Application: need large one time deduction where assets are passed down at discount
• Income goes to charity for a term
• Remainder to Grantor or on to Family
• Most Complicated Technique
Charitable Techniques – Bargain Sales
• Requires a qualified appraisal
• Difference between the appraisal amount and the sale price can be a charitable gift
• Offer and acceptance should include appropriate language
Charitable Techniques – Gift Annuities
• Simple contract between charity and donor(s)
• Limited to lifetimes of one or two people
• Limited to American Council on Gift Annuity Rates
• Regulated insurance product where charity must be licensed to issue
• Fixed payments for life
• Higher rates – senior ages
• Income tax deduction