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Gift Options - Individuals
and Families
Often when we think about charitable giving,
the first thing that comes to mind is an outright gift of cash. Did you
know that there are many other ways to make charitable gifts, some with
tremendous tax and financial advantages for the donor?
These plans make good sense, not just because they offer a financial incentive
to donors, but more importantly because they allow a donor to make a much larger
charitable gift without any greater financial sacrifice.
You can establish a fund at the UM Foundation in a variety of ways.
Remember, you determine the beneficiary of
your gift! Below are some examples (to see a
brief description a gift option, simply click on the gift option title).
Bequests
Charitable Gift Annuity (a gift that pays
an income)
Life Estate Agreement
Donor-Advised Funds
Charitable Remainder Trust (a gift that
pays an income)
Life Insurance
Retirement Plans
Giving Securities or
other appreciated assets
Lead Trusts (make a gift and get it back)
Gifts "in honor of" or "in memory of" others
are appropriate and welcomed. The UM Foundation is happy to send
notification of honor or memorial gifts when requested to do so and information
is supplied.
Bequests
A Last Will and Testament, the basic document of estate
planning, allows you to give charitable gifts as a percentage of your estate, as
a stated amount of money, as a gift of real estate or personal property, or as
the remainder left after other obligations and gifts to family and friends
have been made.
Charitable Gift Annuity
Under this plan, you make your gift to UM Foundation for
the benefit of a United Methodist Church or institution. In return, you
receive a guaranteed lifetime income determined by your age at the time of the
gift is given. You can receive an immediate income tax charitable
deduction, and a portion of the income returned to you is tax-free. Tax
benefits may also come from giving appreciated stocks or properties. The
UM Foundation can complete this agreement and provide tax information to you.
Life Estate Agreement
You may transfer title of a home or farm to the UM
Foundation and retain the right to live there and use the real estate for life
with this plan. You keep all income and are responsible for upkeep.
You receive an income tax deduction the year of the gift, and may avoid capital
gain taxes. After your death the property will benefit the United
Methodist ministry or local church you select.
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Donor-Advised Funds
You establish an irrevocable account out of which you can
recommend the United Methodist cause(s) that should receive the income yield.
You receive an immediate tax deduction for the amount(s) you place into the
fund. The account can grow tax-free. There's the flexibility for you
to recommend grants on your own timetable. Also, there is no capital gain
taxes on gifts of appreciated securities placed into your fund. In
essence, you have your own charitable giving account.
Charitable Reminder Trust
The annuity trust and the unitrust both provide lifetime
income. An annuity trust pays a fixed income based on the value of your
gift, and a unitrust generates a variable income based on a fixed percentage of
the trust's value recalculated annually. Both provide beneficial income
and estate tax considerations. After your death, a United Methodist cause
benefits from what remains in the trust.
Life Insurance
You can name the UM Foundation the beneficiary of an
existing life insurance policy, or you may buy a new policy. The UM
Foundation will use the proceeds for the United Methodist Church or ministries
that you direct. This is an excellent way to provide many times an amount
for United Methodist ministry at a fraction of the cost.
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Retirement Plans
Gifts from existing pension plans and IRAs are convenient
ways to continue faithful giving for years to come. If you name the UM
Foundation (for a particular Church or Church-related agency) as final
beneficiary of your account, any funds remaining in it when you and your family
no longer need them will go to further the ministry you designate.
Giving Securities or
other appreciated assets
Giving stocks, bonds and other assets that have increased
in value from the time you acquired them is a great way to make a charitable
gift. Not only do you avoid paying capital gains taxes on the increase in
value, but in most cases you qualify for a charitable gift income tax deduction
equal to the present fair market value of the asset. You would transfer
the asset to the UM Foundation for the benefit of the local church or agency you
wish to support. If you sell the asset and then transfer the proceeds of
the sale, you will pay capital gains or income tax on the transaction. The
Foundation staff will help you with the transfer.
Lead Trusts
Charitable lead trusts create "temporary gifts."
You can make a gift to charity through a charitable lead trust for a term of
years or the remainder of your lifetime. At the expiration of the trust,
you or your heirs can have the gift back. In the meantime, the income
earned on the gift can support vital United Methodist ministries!
Charitable lead trusts qualify for income tax charitable deductions, and
properly structured lead trusts can pass considerable sums of money to children,
grandchildren and other heirs without generating estate tax, gift tax, or
generation-skipping transfer tax.
The planned giving illustrations are meant for educational purposes only, and
are not to be construed as legal or financial advice. Charitable giving
can be a very important component of a donor's estate plan. Potential
donors should discuss these charitable giving plans with their professional
advisors before making any charitable planned gift.
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Gift Options
Gift Options - Churches and Agencies
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