Become a Christian City “Legacy Provider” by making a planned gift for Christian City, including leaving Christian City in your estate. We recognized our Legacy Providers as those thoughtful and generous people who have sought to help fulfill Christian City’s mission even beyond their own lives. Legacy Providers are recognized on the Christian City website and in our annual report.
There are several methods for making a planned gift:
Cash, securities, real estate or property of any description may be bequeathed to Christian City by a clause in a donor’s Will or by a Codicil added to the Will. A donor using this method retains full control and use of the property during his/her lifetime and may alter or revoke the bequest at any time. At the time of the donor’s death, the bequest qualifies as a charitable deduction for estate tax purposes.
GIFTS OF RETIREMENT PLANS
Retirement accounts including IRA rollovers, Keogh, SEP-IRA and 401(k) plans, tax-sheltered annuities, pension, and profit-sharing plans usually represent assets that have never been taxed. When withdrawals are made, the amount can be subject to federal and state income tax and federal estate tax. Gifts from a retirement account may eliminate these taxes. They can be accomplished through a bequest or beneficiary assignment to Christian City.
LIFE ESTATE IN PERSONAL RESIDENCE
Donors may choose to gift real estate to Christian City with the right to use the property for the rest of his/her life (and that of a surviving spouse, if applicable). Such a gift qualifies for an income tax deduction based on a formula, which involves several factors, including the donor(s) age(s), value of the building(s) and land at the time of the gift, and estimated value at the time Christian City is expected to receive it. The gift also qualifies for the estate tax deduction.
CHARITABLE INDIVIDUAL RETIREMENT ACCOUNT (IRA) ROLLOVER
Under current law, Required Minimum Distributions (RMD) from traditional IRAs and certain Roth IRAs are taxed as income. Donors age 70 ½ years and older can direct their Required Minimum Distributions (RMD) to Christian City as a gift called a “qualified charitable distribution” (QCD), thereby avoiding those withdrawals being taxed as income. QCDs allow charitable rollovers of up to $100,000 from a traditional or Roth IRA.
Donors may choose to use cash, securities, real estate, and other property (including investments yielding tax-free income, but not tangible personal property) to establish a trust benefiting Christian City. Three such trusts are: a Charitable Remainder Unitrust, a Charitable Remainder Annuity Trust and a Charitable Lead Trust. Each has its own tax advantages, stipulations and income benefits. Donors should consult a professional tax advisor for the trust that is right for their financial situation. Christian City is happy to provide a list of professionals to aid you if you wish.
CHARITABLE GIFT ANNUITY
The Charitable Gift Annuity is an irrevocable, binding agreement between the donor and Christian City. By transferring cash, securities, real estate, or other property to Christian City, the donor is guaranteed a partial tax deduction and a lifetime stream of annual income from the charity. When the donor dies, the charity keeps the gift.
The amount of the income stream is determined by many factors including the donor’s age and the policy of the charity. The amount of the charitable gift deduction for income tax purposes is determined by the Internal Revenue Service.
GIFTS OF INSURANCE
A donor may wish to assign Christian City as the beneficiary interest in a life insurance policy. By simply changing the named beneficiary to Christian City, the donor’s estate can obtain a tax deduction on the policy’s value at the time of death. The donor retains the responsibility for making the premium payments and the right to change or revoke their gift as the owner of the policy.
A donor may choose to assign legal ownership of a life insurance policy to Christian City. This entitles the donor to an immediate income tax deduction for the policy’s charitable value. If the donor chooses to discontinue premium payments on the policy, Christian City has the option of cashing it in for its current value or continuing to pay the premiums. If the donor decides to continue making the premium payments, he/she is entitled to a charitable gift deduction for each payment made after the transfer of ownership.
Sadly, we often learn about someone’s generous gift through their estate when it is too late to say thank-you and let them know what impact their support will have. Please let us know if Christian City is part of your estate planning, so that we may recognize and thank you.
Christian City development officers would be honored to meet with you to answer questions and let you know about opportunities for gifts that can provide tax advantages and income for you while you live and create a benefit and legacy for Christian City when you pass.
Contact LaVann Landrum at 770.703.2632 or LLandrum@ChristianCity.org