Planned Giving

What is Planned Giving?

Embracing the opportunity to extend generosity beyond our earthly existence, planned giving stands as a powerful testament to thoughtful stewardship. At the Missouri Baptist Foundation, we have been helping Missouri Baptists give not only in the present but also in leaving a lasting impact for future generations.

Stewardship Planning For Kingdom Impact​

Strategic planning in giving allows individuals to align their resources with causes close to their hearts. The result is a Kingdom impact that echoes far beyond one’s lifetime. By crafting a Stewardship Plan, individuals can ensure that their contributions are invested and given based on their values and beliefs, leaving an indelible mark on the ministries they believe.

Tax Efficiency And Potential Income​

Beyond the spiritual fulfillment derived from planned giving, there are practical advantages that make it a compelling choice. Tax efficiency is one such benefit, as individuals can optimize their contributions through charitable gifts and estate planning. Certain planned giving strategies may even offer the potential for income during the giver’s lifetime, creating a synergy between generosity and financial prudence.

Missouri Baptist Foundation: A Legacy of Support

At MBF, our mission revolves around assisting individuals in giving more effectively to ministries that align with their values through tax-wise charitable gifts and estate planning. We can help walk you through planned giving strategies such as:

Gifts of Real Estate

Unlock the potential of your land or commercial real estate by exploring the numerous ways you can benefit through charitable planning. Making a gift of real estate not only offers an opportunity to sell property tax-free but also provides a unique avenue for increasing income and securing valuable charitable deductions, contributing to potential tax savings. As gifts of real estate can be complicated and have tax implications, please contact us for guidance.

Benefits of Gifts of Real Estate

1. Avoiding Capital Gains Tax: The implementation of strategic planned giving, particularly through a FLIP unitrust, can enable you to sell property without incurring capital gains tax. 2. Charitable Income Tax Deduction: By making a gift of real estate, you become eligible for a charitable income tax deduction, providing potential tax advantages. 3. Leaving a Lasting Legacy: Your contribution goes beyond financial benefits, leaving a lasting legacy that supports the mission of a church or Christian ministry.

Implementation through FLIP Unitrusts

One strategy to consider is the utilization of a FLIP (Charitable Remainder Unitrust with a Net Income Makeup) unitrust. By transferring your property to this trust, you may be able to avoid capital gains tax before a sale. The trust, acting as an intermediary, facilitates the tax-free sale of the property, simultaneously offering a tax deduction for your remainder gift to charity. Following the sale within the FLIP unitrust, you become eligible to receive income, potentially spanning your lifetime and that of your spouse.

How to Make a Gift of Real Property

Transferring Ownership Simply execute or sign a deed transferring ownership to the church or Christian ministry of your choice. Whether you choose to deed a portion or the entirety of your real estate, the gift’s value is typically based on the fair market value, as determined by an independent appraisal. FLIP Unitrusts One strategy to consider is the utilization of a FLIP (Charitable Remainder Unitrust with a Net Income Makeup) unitrust. By transferring your property to this trust, you may be able to avoid capital gains tax before a sale. The trust, acting as an intermediary, facilitates the tax-free sale of the property, simultaneously offering a tax deduction for your remainder gift to charity. Following the sale within the FLIP unitrust, you become eligible to receive income, potentially spanning your lifetime and that of your spouse. Mortgaged Property If the property you wish to gift carries existing debt or a mortgage, it’s essential to contact us for guidance, as there may be implications or complications to the capital gains tax strategy. Sources:

IRA Charitable Rollover

By making a charitable gift from your Individual Retirement Account (IRA), you can leverage several advantages while supporting the mission of our organization.

Tax Efficiency

Conventional charitable gifts often face deduction limits, restricting the full extent of your generosity. However, an IRA charitable rollover transcends these limits, enabling you to make a gift that is not subject to deduction constraints. This flexibility empowers you to contribute meaningfully, unencumbered by the usual boundaries.

If you are 70 1/2 or older, you can also potentially avoid taxes on transfers of up to $100,000 for an individual or $200,000 for a married couple from your IRA to an organization. These funds are then channeled directly to the charitable organization, providing critical support for our initiatives. This act can also fulfill your IRA’s required minimum distribution (RMD), and potentially lower your adjusted gross income (AGI) for tax purposes. Cannot go into donor advised fund.

If you have any questions about an IRA charitable rollover gift, please contact us.

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Gifts of Cash

Empowering Immediate Impact

Your generous contribution in the form of cash can be a catalyst for immediate and meaningful change, fostering a direct and positive impact on our mission.

Cash donations provide the flexibility and immediacy needed to address pressing needs and seize timely opportunities within our mission. Your contribution becomes a catalyst for positive change, supporting ongoing initiatives and enabling swift responses to emerging challenges.

Beyond the immediate impact, gifts of cash offer the added advantage of a charitable income tax deduction. You can mail a check on December 31st, and even if it is processed in the following year, the IRS allows you to claim a deduction for the year in which the check was mailed.

How to Make a Gift of Cash

Online Gifts of Cash: Click HERE to access our secure online donation form. Making an online cash donation is a quick and secure way to contribute. If you would like your church setup with online giving give us a call! Mailing a Gift of Cash: If you prefer traditional methods, consider mailing a check or money order to our address. Specify the purpose of your gift by indicating it in the memo line or including a letter with your check. If you have any questions or concerns be sure to reach out to us. Sources:

Gifts of Insurance

Your life insurance policy, once a safeguard for your family’s future, can evolve into a powerful tool for charitable impact. If your policy has outlasted its original purpose, such as providing for financially independent children, consider the profound difference it can make when redirected towards your church or ministry.

Reach Out to Our Team

For personalized guidance on the gifting process; we can assist you in understanding the implications, ensuring a seamless transition, and aligning your contribution with your charitable aspirations. The transformation of a life insurance policy into a charitable gift allows you to shape a legacy grounded in compassion and generosity. The policy will be included in your taxable estate when you pass away, but your estate will benefit from an estate tax charitable deduction for the value of the gift to the ministry that you designate.

Contact Your Insurance Provider:

Initiate a conversation with your insurance provider to discuss the process of gifting the policy to charity. Obtain clear instructions on how to transfer ownership and designate the charitable organization as the beneficiary.

Name Your Charitable Beneficiary:

Clearly designate the charitable organization you wish to support as the beneficiary of the life insurance policy. This ensures that your contribution directly benefits the cause you hold dear. Sources:

Charitable Remainder Trust

Charitable Remainder Trusts (CRTs) tool involves making gifts, typically in the form of cash, appreciated stock, real estate, or closely held business interests, to establish a trust. In return, donors receive a current tax deduction, and the CRT pays income to the beneficiaries (usually the donors) for a specified period or for life. Upon the conclusion of the trust period, the remaining assets are directed to chosen charitable organizations.

By utilizing a CRT, donors can potentially avoid capital gains tax incurred upon the sale of appreciated property.

Charitable Remainder Annuity Trust

For those seeking a reliable and fixed income, a Charitable Remainder Annuity Trust (CRAT) might be the ideal solution. Offering stability amidst market fluctuations, a CRAT pays out a fixed amount each year based on the value of the donated property. This can provide donors with a consistent income stream while supporting charitable causes. Whether you’re considering a CRT for diversifying your contributions, mitigating capital gains taxes, or ensuring a fixed income through a CRAT, these trusts provide a powerful avenue for aligning your financial goals with charitable endeavors. Gift Annuity Calculator Benefit from fixed payouts that are partly tax free plus charitable tax deductions. Annuity Trust Calculator Receive high fixed payments with tax-free sales plus charitable tax deductions. Deferred Gift Annuity Calculator Benefit from fixed payouts beginning at a date more than one year from the gift. Sources:

Charitable Gift Annuity

This unique financial arrangement allows donors to contribute cash or property, receiving fixed payments for the rest of their lives, while supporting their chosen church or Christian ministry. How it Works: You transfer cash or property to MBF. In return, MBF commits to making fixed payments to you for the duration of your life or the lives of one or two individuals. The fixed income is determined by factors such as your age, and in some cases, a portion may be tax-free. You receive a charitable deduction for the gifted remainder, supporting your chosen church or ministry. If you choose to fund your gift annuity with cash, a significant portion of the annuity income can be tax-free. Making a gift of appreciated securities can fund a gift annuity while helping you avoid a portion of the capital gains tax.

Donor Advised Funds

Are you a generous donor with a heart for making a difference? Using Donor Advised Funds (DAFs) as a giving tool can help.

Your gifts can take the form of cash or stock, you can contribute more than one year of giving to secure a tax deduction yet wish to spread your support over time. Your gifts can take the form of cash or stock.

At the Missouri Baptist Foundation we can handle the entire process for you. Upon receiving your gift, we issue the necessary gift substantiation letter and seek your guidance on which Christian Ministry you wish to support and when. We will also handle all record-keeping and communication with the chosen ministry, freeing you to focus on what matters most – making a positive impact.

Sources:

  • Internal Revenue Service regulations
  • Missouri Baptist Foundation guidelines.

More Info Coming Soon

Bequests

A charitable bequest is one of the simplest and most impactful ways to leave a lasting legacy. By leaving a charitable bequest provision in your will or trust to direct a gift to your chosen church or ministry; you can qualify for an estate tax charitable deduction helping support your church or favorite ministry long after you are gone.

Bequest Options:

  • Designate a percentage of your estate to support your chosen cause.
  • Specify a particular dollar amount or asset to be gifted.
  • Contribute the remaining balance of your estate after other distributions have been made.
  • You can also give retirement assets, such as an IRA account.

Gifts of Stocks & Bonds

Giving a gift of stocks and bonds to your church or ministry not only supports your chosen organization but also allows you to bypass capital gains taxes on the appreciated asset.

How to Make a Stock Gift

1. Contact Us for Assistance:

Reach out to us to facilitate the stock gift process. Providing essential details about the stock, including the type and number of shares, as well as specifying the church or ministry you intend to support, allows us to guide you seamlessly through the process.

2. Complete the Gift Letter:

Utilize our to communicate your intentions effectively. In this letter, include details such as the name of the stock or fund, the number of shares, the beneficiary church or ministry’s name and address, and the approximate date of the transfer. The original letter should be mailed after faxing.

Sample Gift Letter

Talk to us and walk you through the process and provide sample process to your broker.

Electronic Transfer:

Contact us for delivery instructions to facilitate a transfer from your brokerage account to benefit your designated ministry.

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Gifts of Retirement Assets

Did you know that 50%-60% of your retirement assets may be taxed if you leave them to your heirs? Another option is to leave your heirs’ assets that receive a step up in basis (such as real estate and stock) and give the retirement assets to a church or Christian ministry.

Most people will end up not using all of their retirement assets during their lifetime. Unlock the potential of your retirement assets by considering a gift to support your church or ministry. This giving approach not only benefits your selected organization but also provides unique advantages related to your retirement accounts. Gifting retirement assets is a powerful way to create a lasting legacy that extends beyond your lifetime.

The Benefits of Retirement Asset Gifts:

By choosing to give a gift from your IRA, 401(k), or 403(b), you can optimize your charitable contributions while potentially minimizing your tax liabilities by potentially avoiding income tax on required minimum distributions (RMDs).

Contact Us for Guidance:

Whether it’s an IRA, 401(k), or 403(b), designate your chosen church or ministry as a beneficiary. Our team can provide assistance and guidance to ensure your retirement asset gift aligns with your philanthropic goals and distributions are made to your church or ministry.

In addition to distributions, you can also consider leaving a percentage of your retirement account to support the organization by designating it as a contingent beneficiary.

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