Leave a Legacy at Free Will Baptist Press Through Planned Giving
Making a planned gift is one way you can make a significant contribution to the Free Will Baptist Press and gain financial and tax benefits for you and your family. Planned gifts enable donors to make larger gifts than they could make from their income.
When it comes to making a planned gift, donors have many options. Our office is ready to help you and your estate planning advisors understand these options, which range from simple will bequests to more in-depth gifts, such as annuities or charitable trusts.
Please contact Darren Davenport, Vice President, at 1-800-849-3927 to find out more about planned gifts and how you can leave a legacy at Free Will Baptist Press.
WHAT TO GIVE
A gift of cash is the easiest gift to make and provides the maximum deduction for donors. These gifts also deliver immediate benefits to The Press. Gifts can be made to the Free Will Baptist Press by sending a check or contributing online.
Stocks and Bonds
Instead of cash, donors can use appreciated stocks, bonds, and/or mutual fund shares they have held “long term” (more than one year) to make their gift. They will be able to claim a federal income tax charitable deduction for the full, appreciated value of the securities (not the lesser amount they originally paid for them) and remove taxable assets from their estate. In addition, they will pay no capital gains tax on the transaction. This means the after-tax cost is less than a gift of cash.
Make an extraordinary gift to transfer the burden and expense of managing your property and remove a large asset from your taxable estate at the same time by gifting real estate to the Free Will Baptist Press. A real estate gift can be made outright or can fund a life income arrangement. Donors can receive immediate tax deductions while eliminating capital gains taxes. If you are interested in gifting real estate to The Press, please let us know.
Retained Life Estates
Giving real estate while retaining a life estate allows you to donate the title to a personal residence or farm while maintaining the right to live in or use the property for your lifetime or for a term of years. In exchange, you receive an immediate income tax deduction based on the fair market value of the property minus the present value of the retained life estate. This also removes taxable assets from your estate. If you are interested in gifting real estate with a retained life estate to The Press, please let us know.
Gifts can be made by naming The Press as the beneficiary of a portion of or the whole retirement account (IRA, 401K, etc.). Withdrawals can continue to be made during your lifetime, and you can change the beneficiary at any time if circumstances change. Income and estate tax on the remaining balance of your retirement plan will be avoided and by gifting your retirement account (the most-taxed asset of your estate) to The Press, you can leave more favorably taxed property to your heirs.
A gift of life insurance can be made by naming the Free Will Baptist Press the irrevocable owner and beneficiary of a policy. If The Press is named the owner of a paid-up policy or a policy with internal cash value on which future payments are owed, the donor may claim a charitable deduction. If the donated policy still requires premium payments, we will need to pay them to keep the policy in force. The donor can make outright gifts to us to pay future premiums as they are due for additional tax deductions.
You may choose to give valuable assets to the Free Will Baptist Press that you no longer want to insure or maintain. This can be in the form of artwork, collectibles, books, equipment, or other items of tangible personal property. With a few exceptions, a completed gift will yield a charitable deduction for the items’ fair market value, with no capital gains liability to you or to The Press.
WAYS TO MAKE A PLANNED GIFT
For many donors, a bequest is a simplest and most realistic way of making a significant gift to the Free Will Baptist Press. The bequest may be in the form of cash, securities, real estate, tangible personal property, or other assets. You may provide for the Free Will Baptist Press by creating a new will, adding a codicil to your present will, or including the Free Will Baptist Press in your revocable trust. To ensure that your exact intentions are carried out, wills, codicils, and trusts should be prepared by or with the assistance of an attorney.
General Bequest Language
“I give, devise, and bequeath to the Free Will Baptist Press, a Ministry of the Convention of Original Free Will Baptists incorporated under the laws of the State of North Carolina, located at 3928 Lee Street, Ayden, North Carolina 28513 ______ percent of my estate or _________ dollars. This gift may be used to further the mission objectives of the Free Will Baptist Press in such a manner as the Directors of The Press may direct.”
Charitable Remainder Trust
A charitable remainder trust is a life income gift that provides you with annual income and substantial tax savings. You can transfer property irrevocably to a charitable remainder trust and specify how the income and principal are to be distributed. The trust can be funded with cash, securities, real estate, or other marketable personal property. You avoid capital gains tax on the transfer to the trust, thereby leaving the entire value of the gift available to be reinvested to benefit the named life beneficiary. You can establish a charitable remainder trust at Free Will Baptist Press with a gift $25,000 or more, and you choose the area or endowment at The Press that the trust assets will ultimately support.
There are two types of charitable remainder trusts—the unitrust and the annuity trust. The unitrust pays a set percentage of the current value of the unitrust, determined annually. The payout rate is selected by the donor but must be at least five percent (5%). The annuity trust pays income based on a percentage of the initial value of the trust and never changes. This trust provides a fixed amount each year, regardless of fluctuations in the market.
Charitable Lead Trust
A charitable lead trust can be used to transfer assets to children or others at a significantly reduced tax liability. The trust makes a fixed payment to The Press for a specified term, measured either by someone's life or a selected number of years. After the trust term ends, the assets of the trust are either returned to you or passed on to children or other loved ones. If the assets are to be returned to you, you receive an income tax deduction when the trust is created. If the assets are passed on to heirs, applicable estate or gift taxes on the value of the gift are reduced or completely eliminated. The tax savings from a charitable lead trust may allow you to provide significant support for the Free Will Baptist Press at little or no cost to heirs in terms of ultimate inheritance.
A charitable lead trust can be a powerful tool in gift and estate tax planning, but the technical complexities require careful consideration. The Free Will Baptist Press is glad to work with you and your financial advisors to see if a charitable lead trust is the right plan for you.