Growing Your Ministry Foundation Basic Questions

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Growing Your Ministry Foundation William High Servant Christian Community Foundation

description

shows how ministries may grow their fundraising efforts through non cash assets

Transcript of Growing Your Ministry Foundation Basic Questions

Page 1: Growing Your Ministry Foundation  Basic Questions

Growing Your Ministry Foundation

William HighServant Christian Community

Foundation

Page 2: Growing Your Ministry Foundation  Basic Questions

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.

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Donor Issue(7 Flags)

Handle In House(cash/stock)

SCCF(planning/non cash)

Donor

DueDiligence!

DueDiligence!

AcceptanceAcceptance

Receipt

Understanding: Gift Flow Process

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Instruction: Seven Donor Issues

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

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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?

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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

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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

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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?

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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?

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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

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Gifts that Create Income

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

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Application

• Immediate: vehicles/RVs/Boats

• Immediate: Inventory

• Bequests: how is your planning?

• CGAs—gifts to create income

• Looking for Real Estate/Business

sale interests