Tuesday, November 14, 2017

Legacy Giving Ministry

By: Richard Carnes

We often discuss with church leadership that the local church is the most overlooked charity in estate stewardship and legacy giving. It is not that church members are opposed to supporting the ministries and mission efforts of their church in this fashion. Rather, it is primarily due to the fact that most church members are never encouraged by their church leadership to consider giving a part of their estate to their church.

In most churches, the stewardship focus has been on tithes and offering giving that comes from members’ income and “liquid assets”, which may represent only a small portion of a member’s net worth. Certainly, it is good for the church to instill this discipline of current giving, but the discipline of financial stewardship should also include an attitude of legacy giving.

What is a legacy gift?

· It is a gift over and above tithes and offerings. It is a gift out of assets not out of income.

· It is a gift that can’t be put in the offering plate.

· It is a gift made in light of the giver’s overall estate and financial plans.

· It is a gift that uses tax-advantaged methods to accomplish the giver’s objectives.

· It is a gift that may require professional adviser assistance to complete the contribution.

Developing a coordinated legacy giving effort is how the church can equip its members to be Kingdom-minded with their resources. The legacy gifts that transpire from the churches’ stewardship education efforts will most certainly provide additional “above and beyond” financial resources that will permit the church to enhance and expand its programs and ministries.

As church leadership prays about its obligation to educate church members about the stewardship of legacy giving, the leadership should determine how legacy gifts will be used to further the church’s mission and what Kingdom impact will result from receiving legacy gifts.

How does a church get started in developing its personalized legacy giving ministry? An excellent first step is to contact the Kentucky Baptist Foundation. We welcome the opportunity to explain our legacy gift program development assistance. You may contact us 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.


Wednesday, November 8, 2017

A Christian’s Estate Plan

By: Richard Carnes

As with most things, the world’s way of approaching estate planning is profoundly different from God’s way. Estate planning affects literally everything we consider ours. Because of that, it is the single most important act of stewardship we will ever undertake.

Sometimes an event causes a person to confront their mortality, and they engage in introspection about their relationships and values. Possibly the person is stimulated to complete an estate plan they have long postponed and finally take the steps to ensure that their wishes are fulfilled. Maybe they start thinking about the ways they can use lifetime accumulations to make a difference for God’s Kingdom in the lives of the next generation.

As believers we understand that God is the owner of everything; in estate planning we are merely arranging to transfer stewardship responsibility, hopefully in a way that would please the One who has created and who owns all things. God said in Psalm 50:10-12, “… for every animal of the forest is mine, and the cattle on a thousand hills. I know every bird in the mountains, and the creatures of the field are mine.”

In preparing our estate we are faced with a number of fundamental considerations that go to the heart of creating an estate plan that reflects God’s priorities. How shall I provide for my family members? What kind of eternal impact do I want to make through ministries that have been important to me and my loved ones over the course of our lives?

A complete estate plan is an affirmation of the meaning of your life – what you ultimately value, your affections, and the ways in which you want your life to have made a difference for God’s Kingdom.

Because the tools and techniques available to the believer are equally available to the non-Christian, there can inherently be nothing about the tools themselves that make an estate plan “Christian”. Rather, it’s the design of the estate plan. It is the prayer and careful thought put into it that will determine how well it reflects Biblical priorities.

Call upon the Kentucky Baptist Foundation as a helpful partner in these vital planning decisions.

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, October 3, 2017

Estate Documents You Need

By: Richard Carnes

If you have an up-to-date will, congratulations, you are in rare company! Shockingly, almost 60% of Americans have no will at all. And, for the 40% of Americans that do have a will, only about 30% of this group have one that is up-to-date. This statistic translates into only 12% of Americans having an up-to-date will.

Your will is only one of the estate planning documents you need. The attorney who drafted your will may have prepared other necessary documents and explained them to you. Some of these documents also provide the opportunity to designate a charitable beneficiary. To be sure you have covered all the essentials, please review the following list of what you may need:

- Durable power of attorney, which authorizes someone to act on your behalf regarding financial matters if you are unable to do so.

- Directive to physicians (also called a “living will”), in case you are ever in a physical state where you cannot speak for yourself.

- List of recipients of tangible property. This list referenced in your will includes the people who are to receive specific items other than real estate and investments. Many types of tangible property can be donated to a charity as well.

- Revocable living trust. You may want to create a revocable living trust, especially if you own out-of-state real estate and/or want to provide for management of your assets.

- Beneficiary designations. Be sure to review the beneficiary designations of your retirement accounts, life insurance, bank accounts and investment accounts to make sure they reflect your current wishes and are coordinated with your will. A person may make a gift to their church, mission or special ministry by listing the charity within your beneficiary designations.

- List of assets, documents and records and where to find them. Include where to find passwords to digitally stored documents, which is an increasingly important part of an estate.

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. You may contact us 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; 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 19, 2017

Giving Through Kentucky Baptist Foundation

By: Laurie Valentine

For the past 23 years I have had the privilege, as Trust Counsel of the Kentucky Baptist Foundation, to encourage and educate Kentucky Baptists about how they can make a lasting difference for the cause of Christ in this world by using the Kentucky Baptist Foundation to accomplish their charitable giving objectives.

The Kentucky Baptist Foundation is the trust agency of the Kentucky Baptist Convention. It can receive gifts during your lifetime or at death for the support of all Kentucky Baptist and Southern Baptist causes. The Foundation, as a “member of the family”, has a special appreciation for the mission and ministry of the causes that will be supported through your gifts. This connection assures you, as the giver, the Foundation has each cause’s best interests in mind as it manages the gifts made for that cause’s benefit.

Many givers want to benefit more than one cause and realize that dividing their gift may result in lower total support. A single fund can be set up with the Kentucky Baptist Foundation to provide support to more than one Baptist cause. This can result in more consistent levels of support for all----each cause will have the benefit of the same level of competent investment management oversight services and the economies of centralized fund management.

Making the Kentucky Baptist Foundation the manager of your gift assures the causes you want to support are left to do what they were called to do---missions, Christian education, child care, evangelism, disaster relief, etc.

I encourage you to learn how you can practice your financial stewardship at a deeper level through the Kentucky Baptist Foundation.

For more information, contact the Kentucky Baptist Foundation at 502-489-3533 or 1-866-489-3533 (Toll-free, Kentucky only)

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, September 7, 2017

School Time!

By: Richard Carnes

The beginning of a school term is always an exciting time for our children and young adults as they return to school and college campuses across the commonwealth. I recently received pictures of my oldest granddaughter as she began her first day of preschool. There was a twinkle in her bright eyes and a tear in mine as I reflected on her blessed life so far. For my granddaughter, the beginning of her next educational adventure should be smooth. But, for many budding young scholars, the hope of achieving their academic dreams may be deferred due to a lack of sufficient 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 56 scholarships to college and seminary students totaling $78,150 from the 17 scholarship endowments administered by the Foundation.

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 22, 2017

Life Insurance Giving Ideas

By: Laurie Valentine

Using life insurance for charitable giving 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 that will pay out at your death.

There are two ways to make a life insurance charitable gift. 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 the 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 cash value policy to a 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 charitable giving through a life insurance gift.

Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); 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 9, 2017

Your Annual Gift – Forever

By: Richard Carnes

On any given Sunday, Baptist church members across the commonwealth of Kentucky give their regular tithes and offerings to their church and make contributions to Baptist ministry and mission causes that further the growth of God’s Kingdom across the world. Each of these great stewards is to be thanked for this act of faithfulness. Perhaps you have considered how to ensure that your support for these ministries continues indefinitely into the future; one way is to endow your gift.

To create an endowment, you would leave a certain sum of money or asset through your will or living trust, or perhaps name the charity as a beneficiary of a retirement plan or life insurance policy. That sum would be used to establish a fund benefitting the ministry cause as you have directed. The income distributed from the fund would be a continuation of your annual gifts.

How does this work? An organization like the Kentucky Baptist Foundation considers economic conditions when deciding on an appropriate distribution percentage. The total amount of the gift and this distribution percentage determine how much money will be distributed to your chosen cause on an annual basis. If for instance the distribution rate is set at 4 percent, then for each $1,000 annual gift you want to sustain, an endowment of $25,000 would be required. If you have been contributing $2,000 per year, an endowment of $50,000 would ensure an annual distribution of $2,000.

Ideally, the distribution percentage should be set so that the annual amount available for charitable purposes keeps pace with inflation. The goal is that over time the total return of the endowment will exceed the percentage distributed each year, which means that the endowment principal will grow – and annual distributions will increase accordingly. So, in a sense you will be an annual giver indefinitely, and thus ensure the ministry organization you value will continue to be supported.

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 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.