Giving through the United Methodist Foundation of West Virginia
God has called us to generous living, giving of what we have been given to change the world. Our stewardship of what we have received will lead to gifts for ministry throughout our lifetime, and beyond our lifetime through our estate.
The United Methodist Foundation of West Virginia, Inc. can help you plan and complete your gifts. Planned giving is usually accomplished through the use of accumulated resources. Because generosity through planned giving can be more complicated than writing a check, The Foundation stands ready to work with you and your financial planners to achieve your goals.
The Foundation invests in accordance with the Social Principles of the United Methodist Church, avoiding furthering the enterprises of those companies whose major revenues are derived from alcohol, tobacco, gambling, production of nuclear armaments, pornography, and private prisons. Through their Investment Manager, The Foundation engages in advocacy, corporate engagement and positive social purpose lending.
Gift of Securities
Giving long-term appreciated stock can be easily accomplished through the United Methodist Foundation of West Virginia. The Foundation offers individuals, churches, and agencies the use of our discount brokerage account. Proceeds from the sale of securities can be used to start or increase an endowment or donor advised fund, create a charitable gift annuity, or can be “passed through” directly to the ministry of your choice.
Gifts of long-term appreciated stock offers you two ways to save taxes. First, you avoid paying any capital gains tax on the increase in value of your stock. In addition, you may receive a tax deduction for the full fair market value of the stock on the date of the gift.
If your stock has depreciated in value, you may want to sell the stock and then donate the cash. In this way, you may be able to take advantage of the tax benefit of a capital loss as well as receive a potential tax deduction for the market value of the stock.
Contact The United Methodist Foundation of West Virginia, Inc. for help with your gift of stock and to receive Stock Transfer Instructions you can provide to your financial advisor (P.O. Box 3811, Charleston, WV 25338-3811, (304) 342-2113, Fax: (304) 342-2632, Email: email@example.com, Website: www.umfwv.org).
Gifts through a Bequest
No matter your circumstances, you need to have a will. A will provides instructions regarding how your assets will be distributed, who you want to care for your children, and who you want to manage the affairs of your estate, pay your bills, and distribute what’s left over. If you do not have a will, state law determines all of those matters.
You can leave a gift (called a bequest) for your church in your will. Your gift to your church or to the United Methodist Foundation for the benefit of your church or some other ministry can be:
- Contingent—Most people want to care for their spouse and children first. Your bequest for ministry can be contingent on their predeceasing you. For example: “If my spouse should predecease me, then I give, devise, and bequest my estate to the United Methodist Foundation of West Virginia, Inc. to establish a trust, the income from which shall benefit the ministries of the West Virginia Annual Conference…”
- For a specific dollar amount or a percentage.
- Residual—After all the other bequests are made, the church or the Foundation could be the residuary beneficiary: “I give the rest, residue, and remainder of my estate…”
Consider tithing your estate, and the powerful witness that makes.
You can also consider a “Christian preamble.” Your will is a legal document, but there is no reason it cannot be a testimony to your belief in the resurrection. It is, after all, called a “Last Will and Testament.”
Contact the Foundation for bequest language you can provide to your attorney and for an example of a Christian Preamble (P.O. Box 3811, Charleston, WV 25338-3811, (304) 342-2113, Fax: (304) 342-2632, Email: firstname.lastname@example.org, Website: www.umfwv.org).
Gifts through a Charitable Gift Annuity
A charitable gift annuity is a planned giving tool that allows you to make a gift while at the same time receiving a constant stream of income for life.
You can make a gift to the United Methodist Foundation of West Virginia that creates a charitable gift annuity. You would receive a yearly income payment, based on your age at the time the gift. You designate the charity or charities of your choice, such as The Foundation, your local church, or another charity as the remainder beneficiary. The most common beneficiary designation is an Endowment account at The Foundation that provides a perpetual stream of income to the ministry you have chosen.
Payments continue for your lifetime. The remainder of the gift after your death goes to the Endowment account you have specified to pay income to church or ministry of your choice.
A charitable gift annuity can be established for one or two people. In a two life charitable gift annuity, the life payments are paid through the lifetime of the surviving donor.
What are the benefits of a Charitable Gift Annuity?
- There can be tax benefits. You may be eligible for a tax deduction during the year of the gift. A portion of the yearly income paid to you is tax-free income during your lifetime. If the gift is made using securities, there may be favorable tax treatment of capital gains.
- A charitable gift annuity can enable you to make a gift to ministry that is larger than you might have anticipated because the gift provides payments to you the rest of your life.
- The annuity payments, based on your age at the time of your gift, are constant, and do not fluctuate with the market.
- A Charitable Gift Annuity can also offer the flexibility of a deferment of payments until a time in the future, such as anticipated retirement.
Contact The Foundation for more information and to receive a proposal specific to your age and circumstances (P.O. Box 3811, Charleston, WV 25338-3811, (304) 342-2113, Fax: (304) 342-2632, Email: email@example.com, Website: www.umfwv.org).
Gifts through a Charitable Remainder Unitrust
A charitable remainder unitrust (known simply as a unitrust) is an irrevocable trust that allows you to make a gift while at the same time receiving a fixed percentage (which must be at least 5% and not more than 50%) of the net fair market value of its assets, valued annually, paid to you, or to you and additional people, for life. At the end of life, the remainder of the trust is distributed to charity.
How is a Unitrust different from a Charitable Gift Annuity?
- A Unitrust is more flexible, allowing you to select the income percentage and to make additional contributions to the unitrust.
- Charitable Gift Annuity payments never change during the lifetime of the income beneficiaries; unitrust payments are based on the market value of the trust each year, so the payments can go up or down.
- A Unitrust is a more complicated planned giving vehicle; therefore, it has a higher minimum gift amount at The Foundation. The minimum gift to create a unitrust is $50,000.00; the minimum gift to create a charitable gift annuity is $5,000.00.
What are the potential benefits of a Unitrust?
- It provides you with a stream of income while at the same time, allowing you to make a planned giving arrangement to benefit the ministry of your choice.
- It can have substantial tax benefits.
- A unitrust can enable you to make a gift to ministry that is larger than you might have anticipated because the unitrust provides income for life.
A unitrust can be created using appreciated securities that were not producing income for you.
Gifts through Insurance Policies
An examination of your life insurance needs can highlight ways to support the ministry of your choice while not decreasing the balance in your checking account. Consider using a life insurance policy that you no longer need as a charitable gift. To receive a charitable deduction, name The Foundation as both the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value of the insurance policy at the time of the gift. In addition, if you continue to pay the policy’s annual premiums, those payments may be tax deductible each year.
Alternatively, you can make The Foundation the beneficiary of your life insurance policy and provide us with instructions regarding the use of the end-of-life insurance payment. The payment can be a gift to ministry or can create an endowment at The Foundation designed to benefit the church or ministry of your choice.
If there are still beneficiaries who need the proceeds of any life insurance you may have, consider making The Foundation the second, third, or final beneficiary. In the event your beneficiaries predecease you, then the life insurance would pass directly to The Foundation.
Gifts through Retirement Plans
Consider the possibilities of a charitable IRA rollover. People who are age 70½ years or older may transfer up to $100,000 per year directly to a qualified charity (such as the United Methodist Foundation). The transfer is a non-taxable event; it is not reported as income, and there is no charitable deduction for the gift. A charitable IRA rollover may fulfill part or all of your required minimum distribution (RMD). Your gift can create or add to an existing endowment. At this time, law does not allow a charitable IRA rollover to fund a charitable gift annuity, unitrust, or donor advised fund.
You can also make The Foundation a beneficiary of all or a percentage of your retirement plan. Since distributions from most retirement accounts to individuals are taxable, consider making charitable gifts from your estate through a retirement plan beneficiary designation.
Endowments and Donor Advised Funds
An Endowment account at The Foundation creates a permanent financial resource for future ministry. Usually only the annual income or a percentage of the market value is distributed to ministry each year while the principal is not spent and is allowed to grow.
The staff of The Foundation will work with you to design an endowment that makes your goals a reality. Endowments can benefit the ministry of your choice, and can include your church, other ministries of the West Virginia Annual Conference, or any charitable organization that is close to your heart. Endowments can benefit a single ministry, or several organizations. The account can be funded with a current gift or a future gift through any of the planned giving options this booklet has described.
Donor Advised Funds
A Donor Advised Fund is an account at The Foundation to which you can make gifts and then provide suggestions regarding distributions to other charitable organizations that you want to support. It is seen as an alternative to a family foundation, but does not require a separate tax return or a minimum annual distribution.
With a donor advised fund, you technically give up control of the distributions, but, as a practical matter, The Foundation honors donors’ advice as long as it is not contrary to our core values.