Explore the options below to compare the major features of a number of gift planning opportunities. Your advisors can help you in evaluating the benefits depending on your circumstances. We will be pleased to discuss the charitable dimension of your plans.
| Cash: | Convenient and accessible. Income tax deductible for itemizers up to 60% of adjusted gross income (AGI). Any excess is deductible over the next five years. |
| Securities: | Conserves cash for other uses. Income tax deductible as above, but up to 30% of AGI. Capital gains tax not incurred; full value of asset is deductible. Where there is little increase in value over the cost of an asset, it may be best to choose to base your tax deduction on the cost basis of the property and elect to deduct that amount up to 60% of AGI. Any excess is deductible over the next five years. |
| Donor Receives: | The satisfaction of knowing that a meaningful gift has been arranged. |
| Tax Savings: | Federal estate tax deduction for amount bequeathed to charity. |
| Other Advantages to the Donor: | Opportunity to make a substantial gift without depleting funds needed during life. May be revised at any time. |
| Olive Baptist Church Receives: | A substantial gift to further our mission. |
| Donor Receives: | Income earned by trust may be paid to donor, charity, or other(s). |
| Tax Savings: | No income tax benefits (unless income goes to charity). When property passes to Olive Baptist Church at death of donor, estate tax deduction is allowed for amounts transferred for charitable purposes. |
| Other Advantages to the Donor: | Opportunity to change the trust (and gift), if desired. Avoidance of probate. Opportunity for professional management of assets in trust by those of donor's choosing. |
| Olive Baptist Church Receives: | Substantial gift, in many cases larger than the donor could comfortably give otherwise. |
| Donor Receives: | The satisfaction of knowing that a meaningful gift has been arranged. |
| Tax Savings: | Depends on the asset given (For instance, retirement plan assets are
heavily taxed when left to heirs.) |
| Other Advantages to the Donor: | Does not require a change to a will. May be revised at any time. |
| Olive Baptist Church Receives: | A substantial gift to further our mission. |
| Donor Receives: | Variable annual income to donor and/or other beneficiary(ies). Rate of income defined in trust agreement (at least 5% of trust assets). |
| Tax Savings: | Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes. Capital gains tax bypassed at time of funding. |
| Other Advantages to the Donor: | Asset segmentation and preservation. Supplement income of the donor and/or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds by those of donor's choosing. |
| Olive Baptist Church Receives: | A substantial gift when the trust terminates. Knowledge of the gift helps Olive Baptist Church in planning to meet future needs. |
| Donor Receives: | Fixed annual income to donor and/or other beneficiary(ies). Income amount defined in trust agreement (at least 5% of initial trust assets). |
| Tax Savings: | Income tax charitable deduction for the value of the gift that it is expected will be distributed to Olive Baptist Church at the termination of the trust. Value of trust assets at death generally deductible from estate for tax purposes. Capital gains tax bypassed at time of funding. |
| Other Advantages to the Donor: | Asset segmentation and preservation. Supplement income for the donor or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds by those of donor’s choosing. |
| Olive Baptist Church Receives: | A substantial gift when the trust terminates. Knowledge of the gift helps Olive Baptist Church in planning to meet future needs. |
| Donor Receives: | Donor receives no income from the trust. Check with advisors on specific tax treatment of different types of charitable lead trusts. |
| Tax Savings: | In most cases either a current income tax charitable deduction or gift and estate tax deductions. Trust may owe income tax on income realized in excess of amounts distributed to charity. |
| Other Advantages to the Donor: | May provide a means to make a significant gift and have assets returned to donor, or transferred to loved ones at reduced cost. Professional management of funds by those of donor's choosing. |
| Olive Baptist Church Receives: | Either fixed or variable payments for the term of the trust. |
| Donor Receives: | Variable annual income based upon a pro rata share of the pooled investments of the trust. |
| Tax Savings: | Income tax charitable deduction for estimated value of gift to Olive Baptist Church. Value of fund units generally deductible from estate for tax purposes. |
| Other Advantages to the Donor: | Possibility that income payments may increase over time. |
| Olive Baptist Church Receives: | Distribution of value of donor's fund units at the death of income recipient. |
