Mississippi Baptist Foundation
Saturday, December 20, 2014

Planned Giving

What if there were a way that you could further God’s work in your hometown and throughout the world?  What if that help could go even beyond your lifetime?  It can with planned giving.  Many of the blessings we enjoy today are the products of dedication from people in the past. They were committed to leave future generations a rich inheritance on which to build. 

It isn’t about having a lot of money. It is about a willing heart and thoughtful planning.  There are many ways that we can do our part today to insure money will be available in the future to carry out God’s work. 

With planned giving you can conserve your estate’s assets for those you love, including your family and your church.  Additional benefits are avoiding capital gains taxes, reducing your current income taxes, reducing federal estate taxes and increasing your current income.  But above all that, the most important benefit is furthering God’s work in your lifetime and beyond.  What a wonderful legacy to leave to future generations!

With planned giving there are many options from outright gifts of appreciated property to a gift in your Last Will and Testament:

ESTATE PLANNING TOOLS FOR GIVING

Outright Gift
You can make a gift to the Mississippi Baptist Foundation and designate it for any or all Baptist Causes, from your local church, to the World Hunger fund at the International Mission Board.  With your gift to the Baptist Foundation you will know your gift will be used as you directed until Christ comes again.

Outright Gift of Appreciated Property
Appreciated property, such as stocks and mutual funds, make good giving vehicles.  By making a gift of appreciated assets, your tax deduction is based on the fair market value of the asset and not your cost.  Thus, you do not incur the capital gains tax which would be due had you sold the asset and then made a gift.

Gift Through Will
Through your Will, you can specify an amount or a percentage of your estate to be given to the Mississippi Baptist Foundation and used to provide financial resources to the Baptist cause or causes you desire.

Charitable Remainder Trust
The Charitable Remainder Trust allows you to make a gift today while you continue to receive the income from the gift for your lifetime with the remainder given to a Baptist cause at your death.  The Charitable Remainder Trust is flexible allowing the income to be paid to you and your spouse or you, your spouse, and your children.
 (click for more information)

Charitable Lead Trust
The Charitable Lead Trust allows you to establish a trust with the income paid to the Baptist cause you specify with the remainder paid back to you or to members of your family after a period of years.

Charitable Gift Annuity
The Charitable Gift Annuity allows you to make a gift today and get the income back for your lifetime.  At your death, the remainder is paid to the Baptist cause you specify.

Pooled Income Fund
This fund allows the income earned on the gift to be paid back to the donor with the remainder to a Baptist cause.  This is a great giving vehicle for smaller gifts.

Life Insurance
You can make the Mississippi Baptist Foundation the owner and beneficiary of a life insurance policy that you do not need any more or you can purchase a new policy naming the Baptist Foundation as owner and beneficiary.  This is a great way to make a gift to further the cause of Christ.

Remainder Interest in Real Property
You can make a gift of your house or farm while retaining the right to live in the house until your death.  You have the assurance that your house or farm will be used at your death for the Baptist causes you directed.

These giving tools may sound complicated to you, but they are easy for us.  The Foundation recognizes each individual’s particular needs and goals, and we strive to provide our services in a personal and professional manner.  We will be glad to visit with you, your family, and your financial advisors to discuss the pros and cons of each gift-type to find the one that best fits you.


 

Gift Annuity
A Gift Annuity is a contract in which you irrevocably exchange a gift of cash or securities for a guaranteed, fixed income each year for the rest of your life.  At your death the funds remaining in the account go to the Baptist cause you specified.  A Gift Annuity is generally established for the life of one or two people, such as a husband and wife. 

Charitable Remainder Trusts
A Charitable Remainder Trust is a trust in which you irrevocably place cash, securities or other property, but keep a specified income for life or for a term of years.  When the trust ends, the assets remaining in the account go to the Baptist cause or causes you specified.  The Charitable Remainder Trust offers a little more flexibility and planning options than does the Gift Annuity.  You can establish a Charitable Remainder trust during your lifetime or at your death through your Last Will and Testament.  There are two types of Charitable Remainder trusts, the Annuity Trust and the Unitrust. 

Charitable Remainder Annuity Trust
During the term of the Annuity trust the trustee (for example, a bank trust department or the Mississippi Baptist Foundation) invests the trust’s assets.  Each year, the trustee distributes a fixed dollar amount to the income beneficiaries of the trust.  The payments must be at least 5% of the trust’s initial value and are made out of trust income, or trust principal if income is not adequate.  Payments continue until the trust term ends or until the highly unlikely event that the trust distributes all its assets.  When the trust ends the amount remaining in the trust is paid to the Baptist cause or causes you specified.  A charitable remainder annuity trust can be for the life of one or more beneficiaries, a fixed term of not more than 20 years, or a combination of the two.

Charitable Remainder Unitrust 
A Unitrust offers even more planning flexibility as you seek to provide income for yourself or others and make a gift to a Baptist cause.  During the Unitrust’s term, the trustee (For example, a bank trust department or the Mississippi Baptist Foundation) invests the trust’s assets. Each year, the trustee distributes a fixed percentage of the Unitrust’s current value, as revalued annually, to the income beneficiaries of the trust.  If the Unitrust’s value goes up from one year to the next, its payout increases proportionately.  Likewise, if the Unitrust’s value goes down, the amount it distributes also goes down.  For this reason, it may be to a donor’s advantage to chose a relatively low payout percentage so that the Unitrust assets can grow, which in turn will allow the Unitrust’s yearly payments to grow.  A donor can add funds to a Unitrust whenever they like.  A charitable remainder Unitrust can be for the life of one or more beneficiaries, a fixed term of not more than 20 years or a combination of the two. 

There are different types of Charitable Remainder Unitrust.  One type makes its distributions to the income beneficiaries from income or from trust principal should income not be adequate.  Another type only pays the income earned to the income beneficiaries, and still another combines the two types "flipping from one type to the other at a designated time or at the occurrence of some pre-determined triggering event. 

Pooled Income Fund
The Pooled Income Fund accepts gifts from many donors an "pools" those funds together for investment purposes.  The Pooled Income Fund distributes quarterly the Fund’s earned income on a proportional basis to all participants.  When the last named income beneficiary of a gift dies that portion of the Fund principal associated with the gift is distributed to the Baptist cause you specified.