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When asked, many people express the desire to contribute more to the ministries that have touched their hearts and lives. But beyond giving cash, they just aren’t sure how! Below are several common, yet creative, gifting methods for you to consider, many of which offer tax advantages. Our gifting experts would be happy to listen to your heart, answer any questions you might have, and help you determine if one of these methods might be right for you.
Bequest – a gift left to a person or organization following your death through your Will or Trust. A bequest is one of the simplest ways to take care of the people and ministries you love after you are gone.
Beneficiary Designation – although naming children is a popular choice when naming beneficiaries on various accounts, including retirement accounts, you can also name a ministry as one of the beneficiaries. There are tax advantages for using retirement accounts to make charitable gifts upon your death and leaving other assets that are taxed at a lower rate to your loved ones.
Gift of Appreciated Assets – by gifting appreciated securities or real estate to a ministry you love, you can receive a charitable deduction while also avoiding capital gains taxes.
Endowment – a gift in which only a specified portion of the income is distributed to ministry annually in perpetuity. The corpus is invested with the goal of growing it to generate more income to be distributed each year.
Qualified Charitable Distribution (QCD) – if you are over age 70 ½, a portion of the required minimum distribution (RMD) from your IRA can be gifted directly to ministry, thus reducing your taxable income.
Donor Advised Fund – establishing your own donor advised fund will give you an immediate tax deduction for the amount of your gift, even if you have not decided on the ultimate recipient. When you are ready, distributions from your donor advised fund are accepted by most churches and ministries.
Charitable Remainder Trust – an agreement that provides you with an income during your lifetime (and/or an agreed upon term of years) and gifts the remainder to ministry when the trust terminates. The income can be either a fixed dollar amount or a fixed percentage. You receive an immediate income tax deduction and can avoid capital gains taxes if you use appreciated assets to make the gift.
Charitable Gift Annuity – in return for your gift, you will receive a guaranteed fixed percentage of income annually for your lifetime. The gift provides an immediate income tax deduction and a portion of your payments may be tax free. Remaining funds of the annuity are gifted to ministry upon your death.
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