Growing Your Ministry Foundation

William HighServant Christian Community

Foundation

Background: Donor Issues

• Assumption: most donors are not planned—60-70% don’t have valid will or trust.

• Most have planners not educated.

• Paying too much income tax.

• Wealth in assets.

Donor Issue(7 Flags)

Handle In House(cash/stock)

SCCF(planning/non cash)

Donor

DueDiligence!

DueDiligence!

AcceptanceAcceptance

Receipt

Understanding: Gift Flow Process

Instruction: Seven Donor Issues

• Income Tax• Estate Issues• Real Estate• Business• Cars/Boats/RVs• Inventory• Gift Annuity (need for income)

Income Tax

• General Principle:Swap taxes for giving

• 10-20% more• High income—50% or reallocate

assets• Questions: Are you paying too

much in taxes? Are you maximizing your charitable deduction?

Current Plan – Mrs. Cash

Case 1: Excess Income

Income $300,000

$0Income Tax

Deduction on $50,000/yr Gifts

Investments$5,000,000

$150,000 Deduction$100,000

$200,000/yr

$150,000 Taxed

Proposed Plan – Mrs. Cash

Benefits:

Case 1: Excess Income

Income $200,000

$165,000+Income Tax Deduction

Investments$5,000,000

Transfer $1,650,000 CharitableTrust

$100,000

Lower TaxesControlMore Income

(During Life)

Income

Mrs. Cash

$100,000

or

Only $100,000 Taxed

Estate Issues

• General Principles: If giving at death, give during life

• Basic Strategy: Beneficiary Designations

• Opportunity: Estate Tax• Questions: Are you giving to charity

through your estate? Would you like a simple way? Are you facing estate taxes?

Real Estate

• If property is highly appreciated, avoid taxes at sale with a gift.

• The gift may be partial.• The gift may produce income for you.• Questions: 1)Is it appreciated? 2)Would

you like to avoid or reduce those taxes? 3)Does it have debt?

Business Interests/Sale

• Highly appreciated/producing high income• Reduce income taxes• Reduce/avoid taxes at sale• Give complete/partial interest• Not lose control• Create income for yourself

Gifts that Create Income

• Usually 60+• Money market/CDs• Sale of business/sale of real estate• Appreciated stock• Diversification• Desire for income

Application

• Immediate: vehicles/RVs/Boats

• Immediate: Inventory

• Bequests: how is your planning?

• CGAs—gifts to create income

• Looking for Real Estate/Business

sale interests