Giving Strategies

Listed below are the many ways you can give.   For more detailed information and assistance contact: Wendy Sampson Financial Manager- 256-883-9062 wendy.sampson@aldersgate.ws or Art Zimmerman 256-682-2419 artzim55@gmail.com

 

Direct Gift  

The most common way of supporting the Aldersgate UMC is a direct gift which  come in the form of a cash gift, securities, real estate, or personal property.   The vast majority of charitable gifts in the United States are given directly.   

 

Charitable Bequest  

Charitable bequests are gifts made to a charity through your will or living trust.   

Your will or living trust provide an ideal opportunity to make a statement of your faith and support of your church or favorite mission for years to come.   A charitable bequest makes it possible for you to make your wishes known today without relinquishing needed assets during your lifetime.   A bequest means that you make the gift when you no longer need to have the funds available.   You can remember Aldersgate UMC by including a percentage of the remainder of your estate or trust after providing for your family.   Only if there is enough for family and others important to you, will the gift to Aldersgate UMC occur.   If your circumstances change, you can easily modify your will inexpensively by drafting a new will or living trust or by amending your existing document.   You can specify a dollar amount, a percentage of the estate or the residual part of the estate.  

 

Charitable Gift Annuity  

The Charitable Gift Annuity (CGA) is a great example of how a gift generates income for the donor.   This is actually a contract between a donor and a charity that is part gift and part annuity.   Your contribution of cash or securities into a CGA not only supports the Christian ministries of Aldersgate UMC, it provides you or your loved ones with guaranteed fixed payments for a lifetime at attractive payout rates.   These payments are based on your age at the time of the gift.   In addition to the annuity payment, the donor receives a charitable income tax deduction in the year you establish the annuity, and a portion of each annuity payment is tax-free.   Shown below is a sample Summary of Benefits.  

   Summary of Benefits

Prepared for:  Fred and Wilma Flintstone   September 15, 2011  

6.0% Charitable Gift Annuity

ASSUMPTIONS:   

Annuitant                     [DOB 11/30/1933] age 78

Date of Gift                                         09/15/2011

Principal Donated                               $10,000.00

Annuity Rate                                                 6.0%

Payment Schedule                                  Quarterly

BENEFITS:   

Charitable Deduction                           $3,395.10

Annuity                                                $600.00

Tax-free Portion                                     $455.40

Ordinary Income                                     $144.60

After 14.5 years from the year the payments begin, the entire annuity becomes ordinary income.

 

Life Insurance  

If you have a life insurance policy that has served its original purpose – providing for your children, protecting your mortgage, or securing your retirement funds – you may use this policy to help the Aldersgate UMC.   You can do this by naming the Aldersgate UMC as owner or beneficiary, and possibly experience some tax benefits as well.   

 

Charitable IRA Distribution  

The “America Gives More Act of 2015” permanently restores what is called a Qualified Charitable Distribution (QCD).   If you are required to take a minimum distribution from your traditional IRA or employer-sponsored retirement plans, you'll again have the option to make that distribution tax free by directing it to the charity of your choice.

The QCD must be a transfer directly from an IRA to a qualified charity.  

The QCD will be excluded from your taxable income.  

With a QCD you won’t get a tax deduction on the amount donated, but you won’t claim that amount as taxable income.  

Only IRA owners who have attained age 70 ½ are permitted to make QCDs and the amount is limited to a maximum of $100,000.  

One reason QCDs are better than normal Required Minimum Distributions (RMD) is that normal RMDs increase Adjusted Gross Income (AGI) which may cause the loss of some tax benefits such as: reduction of itemized deductions, reduction of passive loss deductions, increased Medicare premiums and causing a greater portion of Security benefits to be taxed.   By making a QCD, AGI is not be increased and some of these tax benefits may not be lost.  

 

Retirement plans   

Naming Aldersgate UMC as a beneficiary of a 401(k), 403(b), 457(b), or IRA can reduce taxes, and result in a significant gift to Aldersgate UMC.  

 

CHARITABLE REMAINDER TRUST   

Charitable Remainder Trusts (CRT) are expensive to implement.   The CRT is perhaps the most versatile charitable giving tool.   With the CRT, it is possible to bypass capital gains tax on the sale of highly appreciated assets, generate an increase in income, receive an attractive charitable income tax deduction, and fulfill your philanthropic objectives.   The CRT is a legal trust that can be constructed to produce a predictable annuity payment each year or take advantage of investment growth opportunities with income payments based on a growing trust principal.  

 

CHARITABLE LEAD TRUST  

Charitable Lead Trusts (CLT) are expensive to implement.   The CLT is the opposite of a CRT in that assets are irrevocably placed in a trust, and the Foundation receives income for a period of years.   You, or your heirs, receive the assets after the term.   While there are usually no income tax deductions, a CLT can allow you to make a significant gift to charity and transfer assets to family members with reduced or eliminated gift and estate taxes.