By: Richard Carnes
Have you ever considered making a legacy gift to your church or other Kentucky Baptist ministry causes? You are to be commended for your desire to build God’s Kingdom through these ministry organizations. To help plan your gift, we suggest you ask yourself the following four questions:
WHAT ASSET SHALL I GIVE?
When making a regular monthly contribution, you will likely write a check or make a cash contribution out of your income. However, if you are contributing a larger amount, cash is not necessarily the best asset. You may realize a greater tax benefit if you contribute appreciated securities—such as stocks, bonds and mutual funds—because you receive not only a charitable deduction for the market value of the contributed asset but also avoid taxation of the capital gain.
WHEN WILL I MAKE MY GIFT?
You may hesitate to make a major outright gift because you do not know what the future holds. You want to be sure you will have enough resources for prolonged care, should that be necessary, or to respond to family members who need assistance. In such cases, you may arrange the gift now but have it become effective at the end of your life.
HOW WILL I MAKE MY GIFT?
Fundamentally there are three ways to make a gift:
- You can give the property outright.
- You can arrange a future gift but retain ownership of the asset and the right to change your mind, such as through your will or a beneficiary designation.
- You can transfer an asset and retain an income from it through an instrument such as a charitable remainder trust or a charitable gift annuity.
FOR WHAT PURPOSE SHALL I MAKE MY GIFT?
You may choose to make a gift with no restrictions, allowing it to be used where it is most needed. Or, you may designate the gift for a particular purpose – such as a specific mission program, or an endowment fund.
For further assistance in answering these questions, please contact the Kentucky Baptist Foundation’s trust counsel, Laurie Valentine or me at our toll-free number (866) 489-3533.
Richard Carnes is the president of the Kentucky Baptist Foundation, P O Box 436389, Louisville, KY 40253; toll-free (866) 489-3533; KYBaptistFoundation.org.
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.