Thursday, November 21, 2013

12 Things to do in 2013- Year End Giving

12 Things to do in 2013-Barry Allen #11

As we approach the end of the year, here are some reminders about charitable giving to your church, another Baptist ministry or to the KBF for the benefit of your church and/or favorite Baptist ministry(s): (1) to claim a deduction you must itemize on Form 1040, Schedule A of your federal tax return; (2) only donations to qualified charitable organizations are deductible; (3) for 2013, an IRA owner age 70 1/2 or older can make a direct transfer of up to $100,000 to an eligible charity, tax free, as a part of the required minimum distribution; (4) the deadline for 2013 "deductible" contributions is December 31, 2013; if your gift is by check it must be written and mailed by December 31 even though it will not be cashed by the charity until after December 31; the same is true with a gift by credit card. For gifts of appreciated assets, and any other assistance you may need, please call Laurie Valentine toll free 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, November 19, 2013

Development and Trust Agency for Churches

By: Barry G. Allen- President & CEO
           
Your Kentucky Baptist Foundation has been serving Kentucky Baptist churches for more than 68 years by providing stewardship related services, which have included administering endowment and trust funds that benefit churches and other Christian causes, educating individuals and couples about the importance of having a Christian estate plan that includes a benefit for their church and equipping churches in how to be more proactive in cultivating and securing estate gifts for their benefit.

Since its inception in 1945 the KBF has been identified as the “trust agency” of the Kentucky Baptist Convention. Today, I am delighted and excited to announce to you the messengers to the annual meeting of the Kentucky Baptist Convention meeting in Paducah on November 12 approved a recommendation that now adds to the KBF’s identity the designation of “development agency” for cooperating affiliated Kentucky Baptist Convention churches, including but not limited to, promoting legacy gifts to and administering funds of those churches.

This new designation is a result of the review process conducted this past year by the agencies and institutions advisory committee and KBC executive director Paul Chitwood. This new designation recognizes the reality that Kentucky Baptist churches are the most overlooked charities in the realm of estate stewardship, and for our churches to be successful in reaching their communities and the world for Christ, they must be equipped to cultivate and secure legacy gifts from their members.

So, as together we look forward to what lies ahead, the KBF desires an even closer relationship than it’s ever had to you and your churches. How you as a Christian plan your estate likely will be the single most significant stewardship decision you will ever make.

Call upon the KBF to become your and your church’s development and trust agency. Your KBF staff stands ready to assist; we are just a toll free call away. Go ahead and make an appointment with us now, even if the appointment date will be in early 2014. We look forward to your call.

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, November 5, 2013

Small Trusts

By: Barry G. Allen-President & CEO

Many banks, especially the large banks, no longer desire to serve as the trustee of “small trusts.” These banks have different definitions of “small trusts.” Sometimes a larger bank becomes the trustee of a “small trust” as a result of a merger or acquisition of a smaller bank. The primary reason a bank may no longer desire to serve as trustee of a “small trust” is it no longer is cost effective for the bank or the beneficiary of the trust. As a result, it is in the best interests both of the bank and the beneficiary to find a successor trustee that can manage it cost effectively. The successor trustee must be approved by the district court.

The KBF is available to serve as the successor trustee of such “small trusts” if the beneficiary is a Baptist organization or a charitable organization with Christian purposes as determined by the KBF board.

There have been several instances in the past, and we expect in the future, where the bank trustee and the beneficiary(s) have petitioned the district court to name the KBF as the successor trustee, and the KBF has accepted gladly this fiduciary responsibility. In addition to our positive investment performance, the KBF applies a Christian-based social screening policy to all individually-owned securities, and our costs are below the market.

If your church or other charitable organization with which you are affiliated is the beneficiary of a trust for which the costs are consuming a disproportionate amount of the distributable earnings, please give us a call. It is possible the trustee would be happy to know there is an alternative like the KBF.

If your church or other charitable organization is contacted by a bank to inform you of its intent to resign as the trustee due to the “small” size of the trust for which the organization is the beneficiary, please make sure the bank knows about the KBF as an alternative to be the successor trustee.

Every dollar the KBF can save in trustee expenses is a dollar more for kingdom advancement. So, keep your eyes and ears open for opportunities for the KBF to be the successor trustee of “small trusts,” and let me know when you discover one. Grace and peace!

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.