  Central’s Finance Committee maintains a list of available Memorials, and they would be happy to work with you to tailor a new idea. While you may choose to allow the church to use such funds to purchase a specific capital item (furniture, art, serving pieces, etc.), you might also consider a gift endowment. Endowments are funds given to Central to be invested, with instructions to use the earnings or a portion of the principle from such funds in perpetuity for a designated or undesignated cause. This is truly the gift that "keeps on giving." The church will accept endowments of virtually any size, particularly if you are willing to allow the gift to be grouped with similar funds for record-keeping purposes. Charitable Gift Annuity If you could give a gift today, enjoy a guaranteed income from that gift for the rest of your life (at rates higher than your current CD is paying), get a current tax deduction, and leave a meaningful legacy to Central, would you think it is too good to be true? But with a charitable gift annuity, you can in fact do all these things. How does it work? Well, first you exchange a gift of cash (such as a maturing certificate of deposit), appreciated stock or other assets for a charitable gift annuity contract. The contract guarantees payment of a fixed income to you for the rest of your life, or the life of you and your spouse (or any other person you designate). The annuity's rate of return is determined by your age(s). There are also tax benefits. The example above creates a deduction of about $4,400 at the time of the exchange. And each year, a portion of the annual payments will be considered a return of principal and will, therefore, be excluded from taxable income. How does Central benefit? Any funds remaining after the lives of you and your spouse are distributed to the church to be used in its ministries. Charitable gift annuities are simple to establish and offer a great deal of structuring flexibility, including the option to defer income to a later date at a higher payment rate. Appreciated Assets Donating an appreciated asset to charity, whether the asset is common stock, real estate, bonds or other property, is a great idea that is too often overlooked. In short, if you currently make regular contributions to Central, or are planning to make a contribution, and you have appreciated assets, there is no reason not to use the asset in lieu of a cash contribution. Not only will you qualify for a tax deduction equal to the current value of the asset, you will avoid taxes on the appreciation. Charitable Lead Trusts Charitable lead trusts can provide great tax benefits for moderate to large taxable estates, while providing significant current income to the church. A charitable lead trust (also called a charitable income trust) is designed so investment income from a portfolio of securities flows first to a charity and at some point in the future the remainder interest either passes to non-charitable beneficiaries (such as children) or reverts to you. The bottom line is that if you have significant assets, there may be a way to design something so that, after taxes, your children will come out better than they might otherwise, and in the meantime you can make Central the recipient of a truly wonderful gift! |