The types of Planned Gifts:
Wills and bequests
A properly executed Will or Living Trust is the only way to assure that your estate is distributed according to your wishes, and is the most common way that deferred gifts to the Church are made. You can designate a percentage or a dollar amount, or direct that the Church receive the residual amount of your estate. A Will or Living Trust can also be used to set up life-income gifts that benefit heirs during their lifetimes, with the remaining principal constituting a gift to the Church.
Life-income gifts are those which pay you income for life, with the remaining principal paid to the Church you designate. You receive a tax deduction for the charitable portion of the gift in the year the gift is made. Life-income gifts may significantly increase your spendable income. Such gifts may be established in a will for the benefit of heirs and ultimate benefit of the Church.
Charitable Gift Annuities
A Gift Annuity's rate of return is based solely on your age at the time of the gift. Annuities may be funded with cash or appreciated securities, and provide fixed income payments for life to you and/or another person, successively. A significant portion of the income may be tax-free. You may defer income payments to a later date, such as retirement age, which may produce a substantial increase in the rate of return. Minimum gift is $1,000.
Charitable Remainder Trusts
Trusts may be funded with cash, securities or real estate and income payments may be fixed or flexible. The most common type, the Unitrust, is valued annually and the donor is paid a fixed percentage of the value over the following year. Minimum gift is $50,000.
Pooled Income Fund
The Pooled Income Fund is like a mutual fund; it accepts gifts from many donors, manages them, and distributes each gift's portion of the earnings to the designated one or two life-income beneficiaries, successively. Minimum gift is $2,000.
The Church can be named as the beneficiary of your life insurance, or the policy itself can be donated to the church. If the policy is paid up, your tax deduction will generally be the replacement cost of the policy at the time it is donated.
Retirement assets may be expensive for heirs to inherit. Naming the Church as the beneficiary of your retirement fund may provide a significant tax savings to your estate.
Charitable lead trust
This gift provides current income to the Church during your lifetime or for a specified term of years, after which the remaining principal is returned to you or your heirs. Payments to the Church may be fixed or variable, depending on the terms of the Trust. Minimum gift is $100,000.
Methods of funding
Cash (all Outright and Planned Gifts)
Cash gifts provide an immediate and direct benefit to the Church, and are usually fully tax deductible by the donor, subject to IRS limits of 50% of Adjusted Gross Income.
Securities (all Outright and Planned Gifts)
Appreciated securities (those which have increased in value since they were purchased) are transferred to the United Church of Christ to avoid capital gain tax on the appreciation. Depreciated securities are sold by the donor so the loss may be deducted from on his/her tax return, and the cash proceeds are donated. Gifts of securities are generally tax deductible at fair market value if owned for longer than a year, in amounts up to 30% of Adjusted Gross Income.
Real Estate (some Outright and Planned Gifts)
Donation of real estate that has appreciated in value provides a charitable tax deduction for the appraised value of the property, and avoidance of capital-gains tax. As with appreciated securities, appreciated real estate must be transferred to First Congregational United Church of Christ, not sold by the donor.
"Gifts" for the giver
People choose to make charitable gifts for a variety or reasons, primary of which is a desire to support work they believe in. Giving also provides benefits to you, the donor. A gift to the Church may include some or all of the following:
Fulfillment of charitable goals
Charitable tax deduction
Avoidance or reduction of capital-gain tax
Income payments for life
Reduction of federal estate tax
Expert investment management by the United Church Foundation
Socially responsible investment
The First Congregational United Church of Christ is exceedingly grateful for the inspired generosity of its members and friends. Your support is vital in continuing the work of our Church. We are eager to assist you in developing financial resources for the mission and ministry dear to your heart!
For questions or information about how you might make a gift to First Congregational United Church of Christ- Grand Blanc please contact: