Typically called legacy or planned giving, a planned gift is a contribution that is arranged in the present and allocated at a future date. The Foundation is here to help create a plan that will fulfill your philanthropic goals, while reducing your income taxes, avoiding capital gains or estate taxes, and retaining lifetime income if desired, all while helping to guarantee future financial support for Arkansas Methodist ministries.
An excellent way for you to support Methodist Foundation for Arkansas's mission is to leave a bequest in your will or living trust. It is reported that seven out of ten Americans do not have a written will. However, a bequest is one of the easiest ways to make a planned gift and benefit your favorite Methodist-related charity upon your death.
One significant benefit of making a gift by bequest is that it allows you to continue to use the property you will leave to charity during your life. Another benefit is that you are able to leave a lasting legacy.
If you have included a bequest for Methodist Foundation for Arkansas in your estate plan, please contact us to let us know. We would like to thank you and recognize you for your gift.
A Charitable Gift Annuity (CGA) is a contract between you and the Foundation. With a gift of cash or stock, MFA agrees to pay you guaranteed, fixed payments for the rest of your life. At your death, the Methodist organization you have named as the beneficiary receives the remaining funds in the annuity. Besides receiving fixed payments for life, a portion of each payment may be tax-free. The payout rates are based on your age, and you will receive a federal income tax deduction for a portion of your gift. A CGA can be for one-life or two.
Charitable Remainder Trust
A charitable remainder trust (CRT) is an irrevocable trust that generates income to trust beneficiaries for a specific time. Upon your death, the remainder in the account goes to the Methodist-related charity you named as beneficiary. There are two main types of charitable remainder trusts:
- Charitable remainder annuity trusts (CRATs) distribute a fixed annuity amount each year, and additional contributions are not allowed.
- Charitable remainder unitrusts (CRUTs) distribute a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made.
Contributions to CRATs and CRUTs are an irrevocable transfer of cash or property, and both are required to distribute a portion of income or principal, to either the donor or another beneficiary. At the end of the specified lifetime or term for the income interest, the remaining trust assets are distributed to one or more charitable remainder beneficiaries.
A Donor-Advised Fund (DAF), is another popular giving tool. You create a DAF managed by MFA in which you make a charitable contribution as often as you like. You will receive an immediate tax deduction for your contribution, and recommend where and when grants from your DAF should be disbursed. DAF funds are spent down during the lifetime of the fund.
You have the authority to direct contributions of 100% of the fund balance. At least 51% must go to Methodist-related charities in the United States. Up to 49% of the annual earnings can be sent to any qualified 501(c)(3) charity in the United States. Donors retain advisory privileges with respect to the distribution of funds. The minimum to open a Donor-Advised Fund is $2,500.
A Family Fund allows individuals and/or family members to provide a source of perpetual support through a permanently endowed fund. You and your family members have the authority to direct earnings on behalf of the fund. Donors make a charitable contribution and receive an immediate income tax deduction. Additional gifts may be made to the fund at any time. All the earnings can be spent, but the corpus becomes part of the permanent endowment, allowing the fund to grow indefinitely.
You have the authority to direct contributions of 100% of the annual earnings. At least 51% must go to Methodist-related charities in the United States. Up to 49% of the annual earnings can be sent to any qualified 501(c)(3) charity in the United States. Donors retain advisory privileges with respect to the distribution of funds. The minimum amount to establish this type of fund is $50,000.
Please contact us if you have any questions about planned giving with the Methodist Foundation for Arkansas or to request any additional information that might be helpful to you and your attorney as you consider making a gift.