Wednesday, May 20, 2015

Ready to Serve

By: Charles Barnes, Chair 
Board of Directors

The Foundation’s new President, CEO and Treasurer, Richard Carnes, will assume leadership of its ministry on June 1, 2015. The Board of Directors strongly believes that Richard has the qualifications and experience to lead the Foundation’s stewardship ministry in an outstanding manner. I want to take this opportunity to better introduce him to all Kentucky Baptists.

First, it should be noted that it takes a special combination of ministerial and financial training to lead the Kentucky Baptist Foundation. Richard is a graduate of Southern Baptist Theological Seminary with a servant’s heart. He loves people and the Gospel. He understands the financial side of the Foundation’s mission by his experience and professional training. From 1988 to 1995 he was President of the Kentucky Baptist Foundation before going back home to Alabama to start the national WMU Foundation. For the last 18 years, he has been a Vice President and Senior Advisor to non-profit investment clients at PNC Bank.

Second, Richard has the natural ability to relate to all Kentucky Baptists who are potential clients and need guidance in making a legacy stewardship commitment to undergird the future Kingdom work of the local church, Cooperative Program, Baptist institutions, and other Baptist causes.

Third, Richard will have a very competent staff and team on board June 1 supporting him. Led by Laurie Valentine, Trust Counsel and Chief Operating Officer, the other members of the team are Barbara Spencer, Administrative/Public Relations Assistant; Janet McIntosh, Accounting Manager; and Katrina Umphrey, Office Assistant. Over the last 90 days as Interim CEO, I have personally seen how dedicated and effective these team members are each day.

In summary, with the leadership of Richard Carnes, the Foundation is positioned very well to serve you. I ask that you pray about your legacy giving opportunity and consider allowing the Kentucky Baptist Foundation to assist you in making your commitment. Richard and the staff will be ready to serve.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.





Wednesday, May 13, 2015

12 Creative Giving Ideas for 2015- #5

By: Laurie Valentine-Acting President, CFO & Trust Counsel

For many, one of the largest assets they may own is their retirement account. And, unlike almost any other asset you own, there is potential for a double tax “hit” on the transfer of retirement assets at your death.

The value of your retirement accounts is part of what is counted in determining if your estate owes any federal estate tax (first tax “hit”) and, if you family is named as the beneficiary/new owner of the retirement account when they take funds out they will have to pay income taxes on what they take out (second tax “hit”).

To avoid the double tax hit, consider using all or a portion of a retirement account to fund the legacy gifts you want to make at your death. The portion passing to charity provides your estate an estate tax charitable deduction and, since the charity is tax exempt, the charity does not have to pay income taxes on what it receives from your retirement account.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Thursday, May 7, 2015

Inheritance: What Kind Are You Bequeathing?

By: Barry G. Allen

The matter of inheritance is exceedingly important and a crucial concern in the dynamics of family life today. Parents consider at length what kind of inheritance they want to pass on to their children. And, children, in turn, when they attain a certain age, ponder what they are going to inherit from their parents. The familiar and favorite parable of the wise father and the prodigal son (Luke 15:11-24) is the finest example I know of the kind of inheritance I would like to give as a parent and receive as a son.

To clarify what this parable teaches us two common misconceptions must be addressed and set aside. The first is an inheritance is something parents leave their children after they have died. However, if you think about it, this is far too limited a concept because parents begin bequeathing an inheritance to their children the moment the child is born in the sense of passing on certain life experiences and values that surely will shape that child’s existence. So, the request of the prodigal was not as brash as it first appeared. Like any young adult leaving home he gathered up whatever inheritance had been shared with him and began transacting with life out of that legacy. As parents it is imperative we not wait until the end of life to consider what kind of inheritance we want to leave.

The second misconception is an inheritance consists only of money or physical property, which also is a far too restricted view, because an inheritance stands for all parents transfer to their children in terms of opportunities, values and a whole vision of life. This is not to imply the economic side is unimportant, because it is very important. But it is not everything, and a child is poor indeed whose parents do not realize this and seek to bequeath only a monetary estate. A child needs more from parents than money bequeathed at death, and this is why the father of the prodigal is so worthy of our attention. And, what makes it doubly important is this father is a reflection of our Father in Heaven.

So, remember, it’s more important what you leave in them that what you leave to them. “Instill your values…before you give them your valuables.”

For more information, please call the KBF at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

Barry Allen is the retired President and CEO of the KBF and currently serves as a consultant to the interim management team. This article published in this week's Western Recorder also appeared in a previous edition of the paper. The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Wednesday, April 22, 2015

Why Are Churches Overlooked?

By: Barry G. Allen

Why do church members overlook their churches when making planned gifts? Planned gifts are gifts church members can’t put in the offering plate; they are gifts out of assets, not income; gifts made in light of the church member’s overall estate and financial plans; gifts that use tax-advantaged methods to accomplish the church member’s philanthropic objectives; and gifts that may require professional adviser assistance to complete.

Churches are the most overlooked charities in estate stewardship and planned giving. Church members are more likely to include in their estate plans or make a planned gift to a college, children’s ministry, human need ministry, the arts or a museum, but not a church.

We have discovered through assisting individuals and families the most likely reasons church members overlook their churches are these. First, they are never asked by their church leadership even to consider including the church in their estate plan or to make a planned gift during life. Second, most church members, even those who tithe out of their incomes, understand tithing as something one does during life, but not at death. Third, they lack confidence the church has the ability to administer such a gift. Fourth, they were unsatisfied with the effectiveness on the church’s ministry. Fifth, they did not have the level of esteem for the church’s leadership required to make such a gift.

Let me encourage you not to overlook your church in your estate stewardship. To the extent Laurie Valentine, our trust counsel, can be of assistance to you, please give her that privilege. Call her toll-free. There is no cost or obligation for this consultation service. Furthermore, she can suggest proven solutions for consideration in overcoming the obstacles others have mentioned as reasons they did not include their church in their plans.

Also, let me encourage you to visit our website at www.kybaptistfoundation.org for valuable charitable gift planning information, including an interactive estate plan organizer, which is a terrific secure and private data gathering, tutorial, decision-making tool.

For more information, please call the KBF at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

Barry Allen is the retired President and CEO of the KBF and currently serves as a consultant to the interim management team. This article published in this week's Western Recorder also appeared in a previous edition of the paper. The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Wednesday, April 15, 2015

12 Creative Giving Ideas for 2015- #4

By: Laurie Valentine-Acting President, CFO & Trust Counsel

Using life insurance to make a legacy gift allows you to make a larger gift than you may have ever dreamed possible. That’s because the premiums you pay are generally significantly less than the life insurance death benefit.

There are two ways to make a legacy gift with life insurance. You can name the charity the primary or contingent beneficiary of the policy or you can transfer ownership and all rights in the policy to a charity.

Naming one or more charities as the primary or contingent beneficiary of a life insurance policy is simple. Doing that provides no current tax benefits to you, but does set up a plan to fund a potentially significant gift to the named charitable beneficiaries at your death for which your estate would get an estate tax deduction.

Transferring ownership of a life insurance policy to charity is a charitable contribution for income tax deduction purposes. If the policy is paid-up, the charity holds it until you die and collects the death benefit. If premiums are still due on the policy, cash gifts you make in future years to the charity to provide the funds for premium payments are additional charitable gifts. If you get to the point you can no longer provide funds for future premiums, or don’t want to do that from the outset, the charity can cash in the policy or adjust the death benefit to take it to “paid up” status.

Leverage your legacy giving through a life insurance gift.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Tuesday, April 7, 2015

Give to God and Caesar

By: Barry G. Allen

Legacy giving by us Christians is unique and distinct because it is a spiritually motivated, not a tax motivated decision.

However, much of the legacy giving in the USA is driven by tax avoidance, not biblical stewardship principles. As Americans we still enjoy the most favorable tax system in the world in terms of encouraging and facilitating charitable giving. So without question we should seek to maximize the available tax benefits in our giving. But, at the end of the day we christians must recognize we shall be held accountable by God for how we steward what He has entrusted to us. And, a legacy gift is a gift you can’t put in the offering plate; it is a gift out of your assets, not your income, and it is made in light of your overall estate and financial plans.

It is important to remember charitable giving in America preceded all of our current tax systems. Many charitable organizations were created and continuously funded through generous outright gifts, bequests in wills and life income gifts before the establishment of the modern federal income tax in 1913, the federal estate tax in 1917 and the federal gift tax in 1935.

I am pleased to acknowledge those whom the KBF has had the privilege of assisting have demonstrated their primary motivation to give was not the tax savings opportunities, but the opportunities to make an impact, to make a lasting difference, to leave a legacy of their love for Christ and His mission in this world through their churches and other christian ministries near and dear to their hearts.

Having said that, taxes can play an important role in the size and the timing of legacy gifts. Inherent in the mission of the KBF is to facilitate the making of legacy gifts by simplifying the process and ensuring each giver is maximizing the tax savings opportunities available. To that end the KBF makes available to all Kentucky Baptists confidential estate and charitable gift planning consultation.

Please call toll free Laurie Valentine, our trust counsel, for assistance in fulfilling the teaching of Jesus to “give to Caesar what is Caesar’s and to God what is God’s” (Matthew 22:21).

For more information, please call the KBF at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

Barry Allen is the retired President and CEO of the KBF and currently serves as a consultant to the interim management team. This article published in this week's Western Recorder also appeared in a previous edition of the paper. The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

Thursday, March 26, 2015

Giving without “Strings”

By Laurie Valentine-Acting President, CFO & Trust Counsel

If making a simple gift now without keeping for yourself any rights or interest in what you give sounds like something you want to do, an outright legacy gift to your church or other charitable cause is the type of charitable gift that will accomplish that objective.

An outright legacy gift is a gift of an asset to charity during your lifetime. The charity becomes the full owner of what you give it and you have no further right to income or anything else from the asset you give.

Any type of asset may be used---cash; stocks; bonds; mutual fund shares; real estate; cash value life insurance policies; and interests in business.

Using appreciated assets to make an outright legacy gift can provide several benefits including a charitable income tax deduction based on the current market value of the gifted asset (if you’ve owned it for at least a year) and avoidance of the capital gains tax that would be incurred if you sold the asset.

Make a lasting difference for the cause of Christ in this world through an outright, “no strings attached” legacy gift to your church or other Christian cause.

For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.