Charitable Gift Planning Services
Bequest Through A Will or Trust
Charitable Gift Annuity
“Give it Twice”
Gift of Life Insurance
Donor-Advised Fund
Charitable Remainder Trust
Remainder Interest in Real Estate
Marital & Family Trust
Deferred Gift Annuity
Bequest Through A Will or Trust
The will (often called the “Cornerstone of Estate Planning”) is one of the most popular “tools” for making long-range gifts. A few of the most commonly used methods of giving through a will are as follows:
A) Stating a fixed dollar amount to be given to a charitable organization.
B) Giving a specific property to a charitable organization.
C) Give a percentage of the assets passing under your will to a charitable organization.
D) Provide a gift to a charitable organization from the residue or “what’s left” after specifically providing for your loved ones.
Charitable Gift Annuity
The Charitable Gift Annuity is a “tool” for individuals to use who wish to make a meaningful gift to a charitable cause and provide for their own future financial well-being. Here’s how it works! A donor irrevocably transfers cash or securities to the Virginia Baptist Foundation, Inc. In exchange, the Virginia Baptist Foundation, Inc. pays you(and another, or a survivor, if you like) a fixed income annually for life. Upon the death of the donor, the remainder of the annuity is managed by the Virginia Baptist Foundation, Inc. which distributes the income annually in perpetuity to one or more charitable causes.
“Give it Twice”
The “Give It Twice Tool of Giving” allows parents to “give their children their fair share of the estate” while still providing for the Lord’s work! For many parents, the additional annual income to their children is preferable to an outright gift which may be spent right away and thus “disappear.” While using this “tool”, all or portion of an estate may be used. Here’s how it works!
A) The estate of Bob & Betty Baptist is valued at $500,000.
B) On the death of the first spouse, the entire estate passes tax-free to the surviving spouse.
C) On the death of the surviving spouse, two children receive an initial gift of $125,000. The remainder of the estate($250,000) is placed in a Charitable Remainder Trust with the earnings paid over a period of time (usually 10 years) until the children receive the remainder of the estate($250,000).
D) After the children receive the remainder of the estate in earnings($250,000), the principal of the trust ($250,000) is managed by the Virginia Baptist Foundation, Inc. which distributes the income annually in perpetuity to one or more charitable causes.
Gift of Life Insurance
This “tool” offers great opportunities for you and your favorite charity. Look at some of the ways that you can give life insurance to support a charitable cause:
A) Name a charitable organization as beneficiary of a policy.
B) Assign your annual dividends to a charitable organization.
C) Give a paid-up policy you already own by changing the owner and beneficiary.
D) Give a policy on which you are still paying premiums.
E) Obtain a new policy for the benefit of a charitable organization.
F) If you are uninsurable, purchase a life insurance policy on the life of another person naming a charitable organization as beneficiary.
The gift of life insurance to a charitable cause can be immediate, private, economical, convenient, and easy to make!
Donor-Advised Fund
The Donor-Advised Fund enables you to enrich the lives of others, increase the potential amount of your charitable contributions, reduce or eliminate federal estate taxes as well as create a philanthropic legacy for you loved ones. Here’s how it works!
A) A Donor-Advisor makes an irrevocable and tax-deductible contribution of cash, securities, real estate, or other qualifying assets.
B) The assets are tracked in an account opened in the name of the Donor-Advisor’s choice of three investment funds.
C) The Donor-Advisor submits a written recommendation that all or a portion of the account be disbursed to one or more charitable organizations as defined by section 509(a) of the Internal Revenue Code.
E) The Donor-Advised Fund sends a check to the approved charitable organization.
Through a Donor-Advised Fund you can increase both the scope and the effectiveness of your philanthropy as well as create a legacy for your loved ones to emulate.
Charitable Remainder Trust
A donor places either cash or certain assets (such as publicly traded securities or unmortaged real estate) into a trust at the Virginia Baptist Foundation, Inc. The donor designates which charitable cause(s) will benefit from the trust after the donors death. The Virginia Baptist Foundation, Inc. sells the assets used to fund the trust and reinvests the proceeds without triggering capital gains taxes for the donor. The donor(or a survivor) collects payments from the trust based on the value of the assets in the trust. Finally, at the donor’s death or at the end of a specified term, the principal of the trust is managed by the Virginia Baptist Foundation, Inc. which distributes the income annually in perpetuity to one or more charitable causes. (Note. Under the Taxpayer Relief Act of 1997, no Charitable Remainder Trust can be established unless it is clear from the outset that a charity will eventually receive at least 10% of the value of the assets.)
Remainder Interest in Real Estate
Using a life estate arrangement, you can make a gift of your home or farm to a charitable organization now-but retain the security of knowing that you may live their as long as you wish! The satisfaction of giving, as well as a tax deduction, are enjoyed now rather than later. You continue to take care of the property, pay the taxes, and even receive any income the property generates. But, because you have made a gift of the property by deed to a charitable cause, it does not pass through your probate estate at death, possibly saving unnecessary expenses and delays.
Marital & Family Trust
Marital and Family Trust agreements are estate planning “tools” that can allow a husband and wife to double the amount of money (from the current federal gift and/or estate tax-free limit of $1,000,000) to $2,000,000 that they can leave to their children without incurring federal gift and/or estate taxes. By the year 2009, this “Unified Credit Equivalent Amount” will effectively rise to $7,000,000! These “tools” can also allow you to provide a life income for your spouse while determining in your will what charitable cause(s) will receive the property after your spouse’s death.
Marital and Family Trust agreements have become a convenient way to assure your spouse adequate income during his or her lifetime while ensuring that your assets ultimately go to the charitable cause(s) that you want to support.
Deferred Gift Annuity
The donor transfers cash or securities to the Virginia Baptist Foundation, Inc. The donor is paid a guaranteed life income starting at retirement or at any specified time. The amount that the donor receives depends upon A) current age B) age when the payments are to start. The benefits to the donor of establishing a Deferred Gift Annuity through the Virginia Baptist Foundation, Inc. are as follows:
A) The donor receives the satisfaction of making a charitable gift now!
B) The donor is provided a guaranteed retirement income of which a portion is tax-free.
C) The donor obtains an itemized income tax charitable deduction in a higher tax bracket year, often saving additional taxes.
D) For an estate otherwise subject to federal estate tax, substantial taxes can be saved.
E) The donor enjoys the assurance of knowing that his gift will be managed by the Virginia Baptist Foundation, Inc. which distributes the income annually in perpetuity to one or more charitable organizations.