Tuesday, December 11, 2018

Planning for a New Year

By Richard Carnes:

Most of us are currently immersed in Christmas events at our churches, holiday baking, Christmas shopping and an otherwise completely full calendar through the end of the year. It’s hard for us to think of anything else, but the start of a new year is an important time for setting fresh goals in many areas of life. This can be an excellent time to review and update our financial plans to make sure the plan will provide adequate financial security for our family and bless the Christian causes important to us.

As we consider strategies for accomplishing our personal and charitable financial goals for 2019 and beyond, we should schedule time to do the following:

  • Identify your sources of income and expenses.
  • Determine the value of your assets and the income (if any) they produce.
  • Review the needs of family members and others, including your church, and consider any changes that may be needed in your plans. 
  • Define your goals for the management and future distribution of financial assets.
  • Make a detailed list of your assets, such as home (including furnishings) and other real estate, vehicles and other personal property, financial accounts, retirement plans and other investments, including their original cost and current market value. 
It is also beneficial to meet with your professional advisors to review and establish your personal and charitable financial goals. Your financial advisor, life insurance representative, accountant, attorney or other specialist can help you evaluate your specific circumstances and guide you in structuring an estate and financial plan that best achieves your goals.

Regular reviews of your long-range estate and financial plans are the best way to make certain your desires for the management and disposition of your property are up to date and meet your current needs.

The Kentucky Baptist Foundation is honored to work with individuals seeking how best to organize their estate planning goals to achieve their personal and charitable objectives to support their church and other Baptist causes. To learn more, you may contact the Foundation staff at our toll-free number (866) 489-3533.

Richard Carnes is the president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; toll-free (866) 489-3533; KYBaptistFoundation.org

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, October 30, 2018

Appreciation Gifts

By: Richard Carnes

Many individuals are reviewing their charitable contributions at the year end and considering how they could provide additional gifts to their church and ministry causes. Perhaps you would like to make gifts above what you give out of income as tithes and offerings to provide on-going support to additional Baptist causes.

One such way to achieve this giving is to use assets that have appreciated in value for making “above and beyond” gifts to support the Christian ministries that are important to you. If you have investment securities you have owned for more than a year that are worth more than the security cost, consider using this asset to make gifts.

Your deduction will actually be based on the full value of the security. In addition, you will not owe capital gains tax that would normally be due on a sale of the security.

Using an appreciated asset to make a gift to your church or other Baptist cause can result in a lower after-tax cost to make your gift than if you use the same amount of cash to make the donation. Savings from the charitable deduction and the bypass of capital gains can be considerable. How much you save depends on your actual income and capital gains tax rates.

The process of making gifts of appreciated securities need not be complicated. If your financial advisor holds the securities for your account, instruct that the security be electronically transferred to the financial account of the designated charity. This is often the most convenient way of making your gift.

When giving securities, including mutual funds, bonds, notes or mortgages, specific advice and instructions should be obtained from your financial advisor. Additional time should be allowed for completion of such gift transactions.

The Kentucky Baptist Foundation staff is honored to work with individuals seeking how best to make gifts of appreciated assets to their church and other Baptist causes. To learn more, you may contact Foundation staff at our toll-free number (866) 489-3533.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; toll-free (866) 489-3533; KYBaptistFoundation.org.

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, October 2, 2018

Giving Wisely

By: Richard Carnes

Kentucky Baptist, Southern Baptist and other Christian causes rely on charitable gifts to meet their current needs and support their future. Gifts to those causes made through the Kentucky Baptist Foundation will be managed using the highest business and Christian ethical standards and methods.

Your gift can take multiple forms and can help you address your personal financial goals. Do you want to make a significant gift during your lifetime, or would a gift as part of your estate work better? Do you have an asset that you are thinking of donating? Do you want to increase your retirement income, or is your primary goal estate preservation? Are you carrying excess life insurance or a large balance in your retirement plan?

Did you know there are ways to support charitable causes important to you that don't affect your current lifestyle or your family's financial security?

· You can make a gift that costs you nothing during your lifetime.

· You can make a gift that leaves your cash flow and current financial planning unchanged.

· You don't have to use cash to make your gift: you can "buy low and give high" by making your gift with appreciated securities instead.

· You can gift an asset you no longer need or want.

We will be pleased to work with you and your advisors to help you craft the gift plan that works best for your goals and dreams. A great place to start as you consider your gift planning is the Kentucky Baptist Foundation’s website www.kybaptistfoundation.org. Many Kentucky Baptists have utilized this site as a source for educational articles on estate and gift planning, charitable gift topics and planning tools.

A great first step when you access the website is to explore our Legacy Planner decision-making tool that helps a person explore gift planning options based on their goals. The Legacy Planner is interactive and fun to use. I encourage you to try it!

The Kentucky Baptist Foundation is here as a helpful partner. If you have questions, please contact the Kentucky Baptist Foundation office at our toll-free number (866) 489-3533.

Richard Carnes is the president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; toll-free (866) 489-3533; KYBaptistFoundation.org.

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, September 4, 2018

Helping Students

By: Richard Carnes

Late summer is always an exciting time for our children and young adults beginning to report back to schools and colleges across the state. The freshness of a new school year is full of potential and new learning experiences. But, for some students, the hope of achieving their academic dreams may be deferred due to a lack of enough financial resources.

The Kentucky Baptist Foundation is honored to work with numerous donors whose passion is helping students receive the necessary financial support to achieve their educational goals. One example of this collaboration is the scholarship funds that donors have created to help off-set the costs of students’ education. For the upcoming academic year, the Kentucky Baptist Foundation had the privilege of awarding 57 scholarships to college and seminary students totaling $74,850 from the 17 scholarship endowments administered by the Foundation. The Foundation is also honored to assist several Kentucky Baptist churches by providing investment oversight and administration of the scholarship funds churches have established for their students.

You may share this same commitment to helping students achieve their educational goals and would like to explore how you can implement a legacy gift plan to fund a scholarship endowment like the ones referenced above. Or you may have a Christian school, college or Baptist seminary that you would like to support through a legacy gift.

The Kentucky Baptist Foundation staff is available to assist you by providing guidance in creating these scholarship funds and charitable endowments to support worthy Christian education causes across the state and the nation. To make intentional plans to care for your family and the ministries God is inspiring you to support, call upon the Kentucky Baptist Foundation as a helpful partner. If you have questions, please contact the Kentucky Baptist Foundation office at our toll-free number (866) 489-3533.

Richard Carnes is the president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; toll-free (866)489-3533; KYBaptistFoundation.org.

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, August 7, 2018

Educate and Encourage

By:Richard Carnes

The Kentucky Baptist Foundation (KBF) helps educate a church’s staff and lay leadership on effective ways to implement intentional legacy planning programs for church members. It is imperative that churches educate and encourage their members to see their financial stewardship more broadly than just the donation they place into the offering plate. This stewardship training extends to planning the utilization of all the financial resources entrusted to church members for the benefit of their family, their church, and Kingdom causes.

Church leaders can make great strides in impacting the financial well-being of church member’s families and the well-being of the church’s ministries by scheduling teaching opportunities for their church members on how to become “Kingdom-minded” stewards. The great news for church leaders is they are not alone in providing this type of Christian estate stewardship training for their members. The KBF helps facilitate this training of church members to become more “Kingdom-minded” by conducting educational seminars on financial and estate planning topics at your church. This educational resource is provided by the KBF at no cost to Kentucky Baptist churches.

Some examples of frequently requested seminars are:

Estate Planning Mistakes and Solutions- Discover what the ten biggest estate planning mistakes are and how to avoid them to assure you manage your finances wisely.

Who Will Be In Charge If …? – Explores incapacity planning tools – powers of attorney, health care advanced directives, Living Trusts and what happens if no prior planning has been done.

Ways To Make Gifts To Your Church– Estate stewardship giving ideas to encourage church members to take stewardship to a deeper level – what to give, how to give, and why we as Christians should give.

As your church begins to plan its Fall series of education and training for Wednesday evenings, Sunday evenings or the Sunday morning Sunday School hour, please consider inviting KBF staff to conduct a seminar session at your church. To learn more, please contact the KBF’s trust counsel, Austin Wilkerson, or me at our toll-free number (866) 489-3533 for the KBF’s full list of legacy planning seminar topics and to schedule a seminar date.

Richard Carnes is president of the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; toll-free (866) 489-3533; KYBaptistFoundation.org.

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, August 1, 2018

KBF 2nd Quarter 2018 Performance Update

KBF – 2nd Quarter Performance Update – The Equity Fund had a positive 3.0% return vs. the equity blended benchmark’s return of positive 2.6% for the 2nd Quarter 2018. The trailing 12 months’ return of the Equity Fund was a positive 14.2% vs. the equity blended benchmark’s return of positive 12.3%.

The Fixed Income Fund declined -0.6% for the 2nd Quarter 2018 vs. the Fixed Income benchmark’s decline of -0.1% for the same period. The trailing 12 months’ return for the Fixed Fund was a positive 0.1% vs. the Fixed Income benchmark’s return of 0.0%.

Accounts with a 50/50 allocation between the Equity Fund and Fixed Income Fund had the following returns: 7.2% for the trailing 12 months; and annualized returns as follows: 5.4% the past 3 years; 6.3% the past 5 years; and 5.2% the past 10 years.

Accounts with a 60/40 allocation between the Equity Fund and Fixed Income Fund had the following returns: 8.6% for the trailing 12 months; and the annualized returns as follows: 6.3% the past 3 years; 7.2% the past 5 years; and 5.5% the past 10 years.

Discover how your church or faith-based not-for-profit organization can invest endowment and similar funds through the Kentucky Baptist Foundation by calling Richard Carnes.

Tuesday, July 10, 2018

Gift Annuity Update

By: Richard Carnes

At the recent 33rd Conference on Gift Annuities, the American Council on Gift Annuities announced new suggested maximum gift annuity rates to take effect July 1, 2018. The new rates reflect an adjustment upward in most rates since the last set of suggested rates became effective in 2012.

A charitable gift annuity enables the donor to make a contribution that might otherwise come through their estate, while also retaining significant benefits today. When a donor establishes a gift annuity through an organization like the Kentucky Baptist Foundation, the property that funds the gift annuity is eventually used for the charitable ministry purpose that the donor designates, just as if the donor had left a bequest by will. But unlike a bequest, a gift annuity will provide the donor with regular payments and other benefits for as long as they live.

Under the terms of a gift annuity the donor can make a charitable gift with cash or other property. The donor or others they designate then receives fixed payments for life. The amount and frequency of the payments are determined at the time the gift annuity is funded. Also, the payments will never change and are designed to continue regardless of how long you live.

Because a portion of the gift annuity will be used for charitable purposes, the donor is entitled to an income tax deduction for the year of gift. Additionally, for a period of time, part of each payment may be received free of income tax or be taxed at capital gains tax rates that may be significantly lower than rates paid on other income.

You may wish to consider arranging a future charitable gift by establishing a gift annuity that results in immediate tax and other financial benefits. By doing so, you may be able to enjoy tax savings and increased income today while providing for a significant charitable gift to a favorite Baptist ministry.

To seek assistance in creating a charitable gift annuity that will ultimately provide support for Baptist causes and learn more about the recent gift annuity rate changes, contact the Kentucky Baptist Foundation at our toll-free number (866) 489-3533.

Richard Carnes is president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; toll-free (866)489-3533; KYBaptistFoundation.org

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.