Planning for the Rest
1 Chron 22.9&10 read: ‘Behold, a son shall be born to you who shall be a man of rest … He shall build a house for my name.’ This was God’s promise to David concerning the rest that Solomon would have as king of Israel, during which he would build the temple. David’s role was to prepare all the materials needed for this to be fulfilled. 1 Chron 29.3-5 records how he provided out of his own resources, and exhorted others to give toward this work that would be done in the coming generation.
David and others in Israel planned ahead, arranging their gifts today to build the house of God tomorrow. Now God’s temple is his church, built of those who believe the gospel and have been baptized into Christ. At TCH we aspire to participate in that work of building God’s house through, for and by him one soul at a time. David made plans for the house of God during Solomon’s rest. Likewise, you can start planning for the rest today. Contact us to LEARN MORE
What is Planned Giving?
The goal of planned giving is to make the most responsible contribution possible. It is intended to maximize the impact your wealth has on your family and the works you choose to support, while also minimizing taxation and other drawbacks. While we mention some options here, it is always recommended that you consult your financial advisor and/or estate lawyer with decisions concerning your wealth.
In Life
If you’re able to make larger contributions right now, there are several ways you can plan to do so. There are also several incentives behind doing so. Planning your gifts may allow for more income tax deductions both immediately and in the future.
After Death
Even though you’ve passed on, taxes have not. Putting some of your estate toward charity reduces its size which can lessen or eliminate estate taxes. Several of these options make it easier, or more affordable, to transfer wealth and property to your family and works you support upon your death. Some may even provide income for you (or family) while you’re still alive.
Common Options in Life
Qualified Charitable Distributions (QCD’s)
This is a great option for people over the age of 70 ½. If you have an IRA, at age 73 you will be required to take minimum distributions out of it. These will be considered taxable income, which can then affect your tax status, medicare premiums and how much social security is subject to taxation. By distributing directly to a charity rather than as income, QCD’s make it possible to avoid this.
Charitable Lead Trusts (CLT’s)
CLT’s are trusts you fund that would provide payments to TCH during a set period of time. After that period (perhaps after your passing) a beneficiary would receive the remainder of the trust. This is a great way to transfer property to family members in a tax efficient manner.
Appreciated Stock & Other Assets
As an alternative to cash, by donating appreciated assets such as stocks, you’ll not only receive the same tax deduction you’d be eligible for with a cash gift, but it will also reduce or eliminate the capital gains tax you incur by cashing the stock out yourself. This tax can be as much as 15-20%.
Direct (Outright) Gifts
This is the typical method most individuals use because it is quick and easy. You might physically give cash or write a check. To be more efficient and facilitate easier record-keeping, you may schedule a recurring (e.g., weekly or monthly, etc.) gift to be drafted from your checking account or mailed via your bank’s online bill-pay service. Note that online giving via credit cards and ACH bank draft usually involve a fee being charged to the receiving church/charity, so consider avoiding that when possible or increasing your giving to cover those costs (which are usually in the range of 1-3%).
Common Options After Death
Bequests
Planning to give to TCH in a major way could be as easy as making us a beneficiary in your will. You can leave TCH a fixed sum, property or even a percentage of your estate.
Charitable Lead Trusts (CLT’s)
As the inverse of CLT’s, CRT’s provide you (or another beneficiary) a stream of income out of a trust that you pay into. Upon your death, the remainder of the trust would go to TCH.
Beneficiary Designations
Much like a bequest in a will, naming TCH as a beneficiary on a life insurance policy or retirement account is another easy way to include us in your estate after your passing.
We are happy to share more details with you about TCH, planned giving and, if needed, connect you with trusted financial advisors. Thank you for considering TCH in the future, and for all the ways you’ve helped in the past!
Chris Doughtie
931.486.2274 x218 cdoughtie@tennesseechildrenshome.org
