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.