Monday, December 30, 2013

12 Things to do in 2013-Properly Report Your Charitable Gifts

12 Things to do in 2013-Laurie Valentine #12

The federal government encourages charitable giving by allowing you to deduct gifts made to your church and other qualified charities on your income tax return if you itemize. However, you must follow the IRS’s reporting rules to assure your charitable deduction.

If you make gifts of stock, bonds, mutual fund shares, life insurance or real estate with a value of more than $500, you must file Form 8283 (Noncash Charitable Contributions).

If the value of your noncash gift is more than $5,000, you must have what you give appraised. The appraisal cannot be dated more than 60 days prior to the date you complete your gift and must be prepared by a “qualified” appraiser (someone who holds themselves out to the public as an appraiser and who has state credentials showing he or she is qualified to do the appraisal). The appraiser may not be related to you, work for you or the charity on a regular basis, or be a party to the transaction by which you acquired the property. The appraiser’s fee cannot be based on a percentage of the property’s value.

You do not have to have an appraisal for gifts of publicly-traded stocks, bonds or mutual fund shares, even if their total value exceeds $5,000.

To deduct any single gift (cash or noncash) of $250 or more, you must have a written receipt from the charity describing (but not valuing) the gift by the time you file your return. If the charity gave you any thing or service in exchange for your gift, the receipt must describe them and give you a good faith estimate of their value. If no goods or services were provided, the receipt must say that. If the only thing you received for your gift of $250 or more was an “intangible religious benefit” the receipt must say that.

Following the rules is key to assuring the deductibility of your charitable gifts!

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.

Monday, December 23, 2013

Giving That Provides Perpetual Support

By: Laurie Valentine- COO & Trust Counsel 

You do not have to be wealthy to provide financial resources that will change peoples’ lives in the Lord’s name.

Providing support that will continue until the Lord returns for your church; state, national and/or international missions; ministries to hurting children and their families; disaster relief; and/or other causes important to you can be accomplished through the creation of a new endowment fund or by making gifts to an existing endowment fund.

An endowment fund is a permanent, perpetual fund managed either by the cause benefited by your gift or another entity such as the Kentucky Baptist Foundation. Only the earnings from the endowment fund are distributed for use by the cause(s) you have designated; the original value of what you give is never spent.

A large gift is not required to establish an endowment fund with the Kentucky Baptist Foundation. It can be started with any amount and you can add to it from time to time over your lifetime. This permits even those of modest means to do much more than they ever dreamed possible. As the endowment fund grows, more lives will be touched and blessed through the support provided.

Endowment fund giving does not have to be an all or nothing proposition. You may want to use a life income gift to fund an endowment fund. Life income gifts allow you to make a gift now that will provide an income stream to you and/or others for life with the endowment fund funded with the remainder of your life income gift at your death.

Establishing (or adding to) an endowment fund during your lifetime may provide income tax savings if you itemize deductions and capital gains tax savings if you use appreciated assets to fund your gift.

All with which we have been blessed comes from God. Establishing an endowment fund, whether through a single large gift or a lifetime of more modest levels of giving, permits you to demonstrate your gratitude for God’s blessings and your desire to be involved in touching lives in His name.

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, December 19, 2013

12 Things to do in 2013-Unequal Shares in Your Will

12 Things to do in 2013-Barry Allen #12

Typically parents leave their children equal shares of their estates. However, there are reasons a parent might leave unequal shares. These include different needs of the children, financial success of one child, a benefit previously given to a child that will be balanced in the estate distribution, estrangement from a child or a blended family.

The KBF encourages every parent to consider prayerfully the circumstances of their children as they plan their estates - and - also encourages parents to consider including "a child called charity," such as their church and other Christian causes they supported during their lifetimes.

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, December 17, 2013

Giving is the Best Part

By: Barry G. Allen-President & CEO

The results of a recent study conducted by U.S. Trust, a subsidiary of Bank of America, were published by “The Chronicle of Philanthropy.” Although the study focused on wealthy Americans, I found the results to be encouraging, relevant and worthy of sharing with you, my brothers and sisters in Christ as we approach this special season of giving.

At least half of those surveyed stated giving money to good causes was “the most satisfying part of life.” In fact, giving money away ranked highest among a majority of the participants than the possessions and lifestyle that come from their wealth. One unexpected finding was 70% of those between the ages of 18 and 32 cited philanthropy as the best part of having wealth. Only 35% of those over age 68 felt that way.

Not surprising was the fact that 76% said supporting charities had a positive influence on society and 80% said the same thing about volunteering.

The number 1 reason for giving cited by the participants was “creating a positive impact on issues or causes while still alive.” Having a positive impact and changing peoples’ lives has always been the number 1 reason for giving in all of the studies.

Another important reason for giving, according to the study, was “setting an example for family members.” More than half the participants listed that as a top reason for giving. This study also confirmed what other studies over the years have shown, namely, tax considerations are very low on the list of reasons people give. That, too, was an encouraging finding and consistent with biblical stewardship truths.

And, the finding I found most compelling was more than a third said they learned charitable values from their parents and other family members. So, parents, what kind of example are you being to your children, whether minor or adult children, in conveying Christian values and principles in your giving?

To the extent we in the KBF can be of assistance in applying those values and principles and setting the example in your estate plan, please give us that privilege. 

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, December 3, 2013

12 Things to do in 2013-Window of Opportunity Closing!

12 Things to do in 2013-Laurie Valentine #11 

The federal tax bill enacted near the end of 2012 extended the Charitable IRA Rollover provisions through December 31, 2013. There is a good chance this “window of charitable giving opportunity” may close and not be extended after that deadline.

The Charitable IRA Rollover provisions permit a person who is 70 ½ or older to make tax-free outright gifts in any amount up to a total of $100,000 from a traditional or Roth IRA directly to qualified charities. Your church and our KBC and SBC agencies and institutions are “qualified charities”. Private foundations and donor advised funds are not.

You are not entitled to a charitable income tax deduction for your IRA Charitable Rollover distributions. They do, however, count as required minimum distributions.

Act now to avoid missing this valuable opportunity to provide current support to charitable causes important to you.

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.