Maximize Your Charitable Giving

By: Laurie Valentine- COO & Trust Counsel 

Maximize your giving impact by:

* Determining if the causes you want to support are qualified charities---the IRS Website (www.irs.gov/charities/index.html) can tell you if they are “qualified” 501(c)(3) organizations (NOTE:  churches are qualified charitable organizations but don’t have to register with the IRS).

* Determining if the charity will be a good steward of your gift---talk to the organization’s leadership; check out website databases that report on the activities and finances of charities such as www.give.org (Better Business Bureau’s database on charities that solicit nationally with links to local BBB sites); www.guidestar.org; and www.charitynavigator.org.

Maximize your tax savings by:

* Giving appreciated assets (stocks, bonds, mutual fund shares, or real estate) rather than cash---the after-tax cost of your charitable gift will be lower than the same size cash gift when you consider both the income tax savings and the capital gains savings you may realize from using the appreciated asset to make your gift.

* Selling depreciated long-term capital gain assets and giving the cash sale proceeds---you’ll get a charitable income tax deduction if you itemize and a deduction for the capital loss.

* Establishing a Donor Advised Fund (DAF).  DAF’s allow you to make your gift in a year when the deduction can save taxes, but defer the decision about what charities will benefit from your gift until later years.

*Maximize your income by:

* Setting up a “life income” gift such as a charitable gift annuity or charitable remainder trust.  Life income gifts provide an opportunity to set up an irrevocable future gift for charity with the potential to increase current cash flow to you and/or others for life or a term of years.  Not only may your cash flow increase, you’ll have tax savings from the deduction of the value of the charity’s interest in the year you set up the life income gift, if you itemize deductions.

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.

12 Things to Do In 2013-Review Your Estate Plan

12 Things To Do In 2013 #5- By Laurie Valentine

Review Your Estate Plans  

Advancing The Kingdom Through Estate Planning 

Your church uses worship, relationships and service to draw people into a closer relationship with Jesus.

Ensure your church will have the financial resources to continue its mission and ministry until the Lord returns by incorporating one or more of the following charitable giving ideas into your estate plan:

BEQUEST IN WILL OR TRUST

• Gift of a specified asset or amount

• Gift of a designated percentage of your estate

• Outright bequest allowing use of entire gift or bequest to create (or add to) a perpetual support (endowment) fund

• Designated for a particular program or ministry or Undesignated allowing your church to decide the use of the gift

BENEFICIARY DESIGNATION

• Name a your church as primary or contingent beneficiary of a life insurance policy

• Designate your church as the beneficiary of a designated portion of your IRA or other retirement asset death benefit

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.

Endowment Power

By: Barry G. Allen- President & CEO 

Do you know what an endowment fund is? Colleges, universities, children’s services, museums, the arts, other public charities and some church traditions have utilized endowment funds for decades to enhance and to strengthen their financial futures and to assure the perpetuation of their missions. However, endowments have not been utilized widely among Baptist churches, except in a few instances, until now.

Some church members resist philosophically the endowment concept for a church lest the church become too dependent upon them and relieve the current members of their on-going giving responsibilities. Others lack confidence in the church’s ability to administer such funds. These obstacles can be overcome through education and vision casting.

First, the sources for endowments are not the same as the sources for the on-going giving of the members. Offering plate giving typically comes from one’s cash income; endowment giving typically comes from one’s estate, represented by non cash assets such as securities, real estate, bequests in wills or trusts and beneficiary designations of life insurance and retirement accounts. Second, the Kentucky Baptist Foundation exists to relieve your church from the on-going administration of endowment accounts and is available to assist church leaders in casting a vision for how and why endowment funds should be incorporated into the stewardship ministry of the church.

Think about this. If a church member, who died 20 years ago, had included in his or her will a $20,000 bequest to establish an endowment with the KBF for the benefit of your church, your church would have received $22,875, an average of $1,144 per year, over that 20 year period to further the church’s Kingdom impact. Those funds could have been used for special mission opportunities, capital improvements, student scholarships, human need ministries or other special purposes. Furthermore, this $20,000 fund would have grown to $32,454 and would continue to provide, until Jesus comes again, a growing stream of funds for ministry.

What if 5 members had done the same thing, or if one member gave $100,000. In that case the church would have received $114,374, and the fund value would be $162,270. That’s what I call endowment power.

Call us toll free for individual assistance or to assist your church to utilize this power.

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.

A Popular Way to Give

By: Barry G. Allen- President & CEO

Giving through donor-advised funds (DAF) is surging in popularity these days, especially with the strong stock market, which has resulted in capital appreciation on which a capital gains tax will be owed when the securities are sold. Giving through a DAF allows you to give the appreciated security, or cash, avoid the capital gains tax and receive an immediate tax deduction without specifying at the time of the gift the charity or charities you want to benefit. The specific charity or charities can be determined at a later date.

In addition to spontaneous giving opportunities, a DAF also can be used for strategic gift planning and for helping you make giving a multi-generational family affair. Many donors use a DAF in anticipation of selling a business or a business interest. It’s very much like establishing your own private foundation but without the hassle and expense.

Even a business can establish a corporate DAF. Stewardship is not limited to individuals and families. Oftentimes business owners and corporations feel the same “to give back” as individuals and families feel.

The KBF has been offering the DAF option since 1993. Those who have utilized this option have found it to be most beneficial. Rather than writing multiple checks and tracking numerous receipts, you only need the receipt you receive from the KBF. You can empower children or grandchildren to participate in the “advisory role” to provide them hands-on experience in stewardship decision-making. The DAF ultimately can become an irrevocable, permanent endowment fund as a lasting legacy of your stewardship through the cause(s) near and dear to you. The DAF facilitates you taking advantage of the tax benefits available to you without the administrative burdens and expense of a private foundation. And, last but not least, you receive the beneficial assistance of our professional staff to maximize the impact of your giving.

Don’t wait! Act now! Call Laurie Valentine or me toll free for assistance in establishing a DAF for you, your family or your business.

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.