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
  • 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