First Cumberland Presbyterian Church
of Olive Branch
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How Can I Make a Gift to the Cumberland Presbyterian Denomination?
Advantages and Disadvantages of a Variety of Gifts
Board of Stewardship
Foundation and Benefits
Cumberland Presbyterian Church
8207 Traditional Place
Cordova, TN 38016
901/276-4572
Website:
http://www.cumberland.org/bos/
Outright Gift
Advantages
Reduction of estate
See work of gift immediately
May be given in memory of someone
Tax deduction for full amount (IRS limit)
Capital gains may be avoided on appreciated asset
Disadvantages
Asset is no longer available for use
Asset no longer provides income
Asset not passed on to heirs
Revocable Gift Agreement
How it Works
Cash is given to the Board of Stewardship
Donor receives income based upon investment performance
Donor may take all or a portion back
Money left in agreement at death is a gift to designated congregation, presbytery, or CPC organization
Advantages
All or a portion of gift may be taken back if needed
Low miminum $500
Estate tax deduction if left until death
Disadvantages
Asset is attachable
No income tax deduction
Interest rate is dependent upon investment performance
Charitable Gift Annuity
How it Works
Cash or securities are given to the Board of Stewardship
Payments are made to donor or donor's designee for life (amount is based on age of recipient)
Upon death of the income recipient payments end and the remainder is distributed to designated congregation, presbytery, or CPC organization
Advantages
Fixed income for life
Payments backed by assets of Board of Stewardship
Older is better--higher rate of return
May avoid some capital gains and spread out the rest over lie expectancy
Tax deduction on gift portion of annuity
Some tax free income during life expectancy
May increase income from low producing asset
Disadvantages
Asset is irrevocably transferred
Church receives
remainder
, not full amount
Deferred Gift Annuity
How it Works
Same as immediate pay annuity except that payments to income beneficiarites are deferred to a later date
If income recipient dies before payments start, the annuity ends and principal is paid to designatee congregation, presbytery, or other CPC organization
Once income payments begin, everything is the same as an immediate payment annuity
Advantages
Larger payment when payments begin
Larger tax deduction in year of gift
Annuity payments backed by assets of Board of Stewardship
Fixed income for life
Same capital gains advantages of immediate annuity
Some of payment may be tax free during life expenctancy
Disadvantages
Asset is irrevocably transferred
More of annual payment is taxable income
Church receives
remainder
, not full amount
Lift Estate Contract
How it Works
Home is given to church but donor retains the right to use it for life
Donor continues to pay taxes and maintain property
Upon death of donor, home is property of church
Home is taken out of estate
Advantages
Can give home now and continue to live in it
Income tax deduction in year of gift
Home is removed from estate
Disadvantages
Irrevocable gift
Continue to have property tax and maintence responsibilites
Not available as an asset to provide for long term health care
Life Insurance
How it Works
Church is made
owner
and beneficiary of life insurance policy
May be done with an old policy, or a new one may be purchased
If premiums need to be paid in the future, donor may give them to church and receive a tax deduction
Advantages
May be the largest gift you can make
Large gift with relatively small cash outlay
Asset may be removed from estate
Tax deduction roughly equal to cash value
Disadvantages
Irrevocable gift
Premiums may continue to need to be paid
Insurance company must be involved in transfer
Pension Funds
How it Works
Church is named a beneficiary of pension fund (IRA, 401(k), 403(b), etc.)
Church may be sole beneficiary or named for a portion
Upon death, church receives the designated portion
Advantages
Can solve "IRD" problems
Can be poured into a charitable trust to solve tax problem for heirs
Estate tax deduction
Disadvantages
Asset not passed on to heirs
Will or Bequest
How it Works
Church member makes a designation in his/her will giving the church certain assets or property
May be designated for a certain purpose
Upon death, church receives property so designated
Advantages
Simple
Have use of and keep control of asset until death
Can be changed
Charitable deduction for estate taxes
Disadvantages
Other heirs will receive less
Bequest may be challanged by other heirs
Asset may be used up before death
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