- The simplest means of supporting Arkansas Baptist Children's Homes and Family Ministries is through direct cash gifts.
- Cash gifts are tax deductible if you itemize deductions.
- You can receive a tax deduction up to 50 percent of your adjusted gross income in any one tax year. Excess can be deducted over the next five years.
- Many employers have established matching gift plans. You can check with the Human Resources Office in your company to see if they will match your gift to the Children's Homes.
Wills and Revocable Trusts
- You can name Arkansas Baptist Children's
Homes and Family Ministries as a beneficiary in your will or revocable
trust in any of the following ways:
- Designate a certain dollar amount or a percentage of your remaining estate.
- Designate particular securities or other property including real estate, vehicles, or personal items.
- Designate all or a portion of your estate, after payment of specific amounts to other beneficiaries.
- Designate all or portions of your estate to be given to Arkansas Baptist Children's Homes and Family Ministries only in the event that the primary beneficiaries die before you do.
- Outright bequests to the agency, as well as certain bequests in a trust, are not subject to estate taxation. They provide a charitable estate tax deduction if needed.
- Often, your bequest can be arranged by simply adding a codicil to your existing will or an amendment to your revocable trust.
- Retirement accounts can be left to ABCHomes through changing the beneficiary with your custodian.
- Your estate can receive a charitable tax deduction if needed and avoid ordinary income taxes.
Charitable Gift Annuity
- Your gift provides a fixed income for the lifetime(s) of one or two annuitants.
- Amount paid to you is determined by rates recommended by the American Council on Gift Annuities. (The older the annuitant, the higher the level of income.)
- A portion of your gift is tax deductible and a portion of your income is tax-free.
For example, you and your spouse could make a gift to Arkansas Baptist Children's Homes and Family Ministries. Each month for the remainder of your lives you could receive an income from your gift. A portion of your gift would be tax deductible and a portion of your income is tax-free. When both you and your spouse have passed away, the charity would then receive the remainder of the annuity account.
Deferred Gift Annuity
- Basically all the features and benefits of a gift annuity.
- Offers increased income and tax benefits.
- Income is delayed until a future date that you choose, often at retirement. This allows you to begin receiving tax benefits earlier.
Life Income Trusts
- Trust's assets are funds of property you contribute (generally $50,000 or more). There is some flexibility in the type of property that can be donated. Real estate, stocks and some bonds are among the resources that you can use in establishing a Life Income Trust. You can provide for a fixed amount of income (Charitable Remainder Annuity Trust) or you can choose a variable level of income based upon an annual percentage rate (Charitable Remainder Unitrust).
Charitable Lead Trust
- You set aside assets for charitable use for a limited period of time.
- Your gift is invested to provide income to Arkansas Baptist Children's Homes and Family Ministries during the limited time period.
- The remainder of the assets of your trust is returned to you or your family at a date that you specify.
For example, you give Arkansas Baptist Children's Homes and Family Ministries $50,000 to invest for 10 years. The agency will receive the interest from your gift for 10 years and then return the remaining trust balance to you or your designated beneficiary.
Bank and Brokerage Assets
- Bank and brokerage assets can be left to benefit ABCHomes through changing the beneficiary (pay-on-death or transfer-on-death).
- There is an estate tax charitable deduction if needed.
For a paid up policy, consider making Arkansas Baptist Children's Homes and Family Ministries the beneficiary of your policy. There can also be tax benefits for transferring ownership to ABCHomes.
- If your policy is not fully paid, you can potentially receive a tax deduction for annual premiums for policies listing the ministry as the sole beneficiary and owner.
(Real Estate, Publicly Traded Stock, Closely Held Stock)
- A gift of property avoids capital gains tax.
- You can receive a deduction for full value of your gift, limited to 30 percent of your adjusted gross income. Excess can be carried forward for five years.
- It is possible to make a gift of your primary residence, farm, or vacation home, reserving the right to occupy it for as long as you or your spouse live. You qualify for an immediate tax deduction for the present value of the remainder interest in the property.
- When giving stock, the amount of your contribution is the fair market value (average of high and low price) on the day of the transfer. You might consider selling depreciated stock and donating the proceeds to receive capital loss deduction and a charitable deduction.
WE'LL HELP YOU!
Making a gift can be a major decision for you. We'll help you understand the many gift options available. Our staff and/or the staff of the Arkansas Baptist Foundation, 1-800-838-2272 or in Little Rock at 376-4791 or at firstname.lastname@example.org can help you plan your gift annuity, will, or other gift instrument in order to fulfill your charitable interests and provide you with the best tax advantages.
Of course, the final decisions are yours and we'll not pressure you. You will be instructed to consult your financial adviser or attorney before finalizing a major gift.
Please contact David Perry at 1-800-838-2272 or in Little Rock at 376-4791 ext. 5167.