Tuesday, May 29, 2012

Your Own Foundation

By: Barry G. Allen- President & CEO

The Kentucky Baptist Foundation was established in 1945 and exists today for you and your church.

It exists for you as an individual or family so you do not have to incur the initial and on-going administrative costs and responsibilities inherent in having your own private family foundation. As a result you and your family, now and into the future, regardless of your level of wealth, can accomplish your philanthropic goals through an arrangement with the Kentucky Baptist Foundation.

In addition to avoiding the administrative costs and responsibilities of a family foundation, there are three other benefits of an arrangement with the KBF. First, there is a privacy benefit. A private family foundation must file detailed and public tax returns on grants, investment fees, trustees’ names and staff salaries. Through an arrangement with the KBF the names of donors can be kept confidential and distributions can be made anonymously. Second, a private family foundation must distribute 5% of its net assets annually; through an arrangement with the KBF there is no annual distribution requirement. Third, there is a tax advantage. The tax deduction limit for gifts of cash to a family foundation is 30% of one’s adjusted gross income; it’s 50% through an arrangement with the KBF. The deduction limit for gifts of securities or real property to a family foundation is 20% of one’s adjusted gross income; its 30% through an arrangement with the KBF.

The KBF also exists for your church for the same reasons in terms of not having to incur the initial and on-going administrative costs and responsibilities associated with having its own church foundation. In addition, through an arrangement with the KBF your church can facilitate the estate stewardship interests of its members in sustaining and enhancing the financial future ministry of the church and other charitable causes near and dear to the members’ hearts.

Call us toll free for information about how the KBF can become your foundation and your church’s foundation for charitable giving.

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.

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