Legacy Giving Options
Additional ways to give financially to Relevant
To give using one of the following options or to receive counsel from Relevant's "Legacy Giving Team" fill out this form.
NOTE: Relevant Community Church does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide and should not be relied upon for tax, legal or accounting advice.You should consult with your own tax, legal and accounting advisors before engaging in any transaction.
POPULAR WAYS TO GIVE
Cash
Individuals may make unrestricted gifts by cash, check, EFT, credit card, or money orders which are by far the simplest form of gifting. Both individuals and corporations are eligible for potential charitable tax deductions.
Community Foundation Charitable Checkbook or Donor Advised Funds (DAF)
Relevant Community Church can be the charitable recipient of cash from a Donor’s Charitable Checkbook or a Donor Advised Fund. These arrangements allow donors to make irrevocable transfers of cash or securities to a separate DAF fund/account or Charitable Checkbook for later distribution to Relevant Community Church but with the advantage of a current income tax deduction.
Appreciated Securities
Individuals may donate publicly traded securities held long term (stocks, bonds, mutual funds, ETF’s, etc.) that have appreciated in value over the course of time directly to Relevant Community Church. These types of gift permit the donor to claim a charitable tax deduction for the full fair market value of the security and avoids capital gain tax on the transfer.
Closely Held Stock
If a donor owns an interest in a closely held business, they could donate some or all of the stock to Relevant Community Church. When properly structured, donors could receive a tax deduction for the appraised value of the stock gift and avoid capital gains tax on the transfer.
Qualified Charitable Donations (QCD) of Required Minimum Distributions (RMD) from IRA
Individuals subject to annual IRA required minimum distributions rules may make a QCD directly to Relevant Community Church from their IRA. This allows each donor to satisfy up to $100,000 of their annual RMD requirement without the distribution being considered taxable income. Under this provision, the individual cannot also claim the donation as a charitable contribution.
Tangible Personal Property
Individuals may make an outright gift to Relevant Community Church of tangible personal property today or after their lifetime. (Examples of these are works of art, coin or stamp collections, cars, etc.). This type of gift generally requires a qualified appraisal in support of a possible charitable deduction for the donor.
Real Estate
Individuals could donate appreciated real estate to Relevant Community Church. The tax treatment for gifts of real estate often depends on the type of property donated and the length of the property’s ownership. Individuals considering this form of gift are recommended to consult with their legal and tax advisors with regard to the possible tax benefits associated with the transfer of real estate.
Life Insurance
Individuals may transfer ownership in their life insurance policy by making Relevant Community Church the owner and beneficiary of the policy. The individual would be allowed a tax deduction generally equal to their tax basis in the policy (usually based on the amount paid in or cash value of the policy, whichever is less). Donors should consult with their legal and tax advisors before donating the policy to ensure that it’s the right choice for them.
Charitable Lead Trust
A charitable lead trust is an irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets being returned to family members or other beneficiaries at the expiration of the trust. The structure of the trust will determine the possible charitable tax deductions allowed. Trusts are somewhat complicated, thus potential donors are advised to consult with their tax and legal advisors to pursue such arrangements.
HOW TO EXTEND YOUR GIFTS INTO THE FUTURE
A Payable on Death (POD) CD, Bank or Brokerage Account
Individuals may name Relevant Community Church as the beneficiary of their certificate of deposit, bank account, or brokerage account transferable upon the owner’s death. The account owner would retain control of the account/CD during their lifetime and could change the beneficiary at any time during their lifetime.
Life Insurance Proceeds
Individuals may name Relevant Community Church as the beneficiary of their life insurance policy. In the alternative, Relevant Community Church could be named as the contingent beneficiary in the event the primary beneficiary doesn’t survive the policy holder. Such designations generally reduce the donor’s estate by the amount of the death benefit. Potential donors should consult with their legal, tax and insurance advisors to determine if this type of transfer fits within their planning objectives.
Retirement Plan Assets’; Beneficiary Designations for IRA’s Qualified Retirement Plans (401k; Profit Sharing Plans, etc.)
Individuals may name Relevant Community Church as the beneficiary of all or part of their Retirement Plan assets. Under this option, Relevant will be treated as receiving the distribution, therefore neither you nor your estate will owe income taxes on the distribution. Although the Retirement Plan asset would still be included in the donor’s estate, the donor’s estate would receive a deduction for the amounts designated to charity. Consultation with your legal advisors is recommended if you are considering this planning opportunity.
Remainder Interests in Real Estate
Individuals could create a remainder interest or life estate in real property (personal residence, vacation property, a farm or other real property) with Relevant Community Church being the recipient of the future interest in the property. This generally entitles the individual to an income deduction equal to the present value of the future interest transferred to Relevant Community Church. You should consult with your legal advisors if you are considering this planning opportunity.
Charitable Remainder Trust
Individuals may wish to support Relevant Community Church through gifts in trust. There are generally at least two types of trust to accomplish these goals:
Charitable Remainder Annuity Trust is a trust where the donor retains the right to a specific annuity amount for a fixed period of time or their lifetime. The donor may name Relevant Community Church as the beneficiary of the remaining interest. The donor would be entitled to a one-time tax deduction (determined at the inception of the trust) for the remainder value of the interest.
Charitable Remainder Unitrusts are similar to an annuity trust with two exceptions: (1) the unitrust payout is determined annually vs being a fixed amount and (2) additional contributions may be made to the unitrust thus allowing the donor to obtain additional remainder interest tax deductions for the additional contributions. Potential donors are advised to consult with their legal and tax advisors if you are considering this planning opportunity.
Direct Estate Bequests
Individuals may direct, at death, that Relevant Community Church receive either a specific dollar amount or specific property. The individual’s estate could receive a charitable deduction for such bequests.
Many of the outlined legacy giving options come with their own rules, tax benefits, and setup requirements. It is advised that you contact your financial advisor or tax professional to assist you in any of these options.
Questions?
Email us at accounting@relevantcommunity.org