Make Neighborhood Church a beneficiary of one or more of your financial accounts or include Neighborhood Church in your will or trust.

When you are the owner(s) of a financial account, you can name who will receive the funds in that account if you should pass away.

You can add a beneficiary to Savings, Checking, IRAs, Stocks, Mutual Funds, and Life Insurance accounts.

Yes, you simply need to name the recipients and what percentage each will receive.

Yes, by giving appreciated stocks and appreciated real estate you can avoid the Capital Gains Tax you would normally have to pay if you sold them and then gave a cash gift from the proceeds.

It is the tax you pay on the difference between the “Cost Basis” (the price you originally purchased the stock or purchased and invested in improving the real estate) and the selling price.

It can be 0% - 37% depending on how long you have held the investment and your personal income.

A Donor Advised Fund (DAF) is a dedicated giving fund. You can fund the DAF with cash, commodities, appreciated assets, or real estate.

A DAF is an excellent tool that helps you manage your giving for maximum tax-advantage. Giving commodities provides tax-savings for growers. Giving appreciated assets enables the donor to avoid capital gains tax. A DAF can also help people giving cash to maximize their itemized charitable giving deductions on alternative years.

You get a receipt for your donation when it is made into the DAF. The monies stay in the DAF until you release them to the charity of your choice. There is no time-limit for when those funds must be distributed, however, the donation into a DAF is irrevocable.

When you make a direct gift from your IRA to a charity, you avoid the income tax you would normally pay on that income.

No, because you have already received the benefit of lowering your taxable income.

Yes. However, you must make the Charitable Gift prior to any RMD withdrawal.

First, you get an immediate tax benefit for a portion of the charitable contribution that can be carried over for up to 5 more years if needed. Second, you receive a 5% annual payout (may be paid out monthly, quarterly, or annually) based on the value of the trust on December 31st each year.

Normally, a CRT lasts for your lifetime (and your spouse’s lifetime). You can also add up to another 20 years of payouts for your children (or other recipients) that would begin after your lifetime(s). This is called a Charitable Remainder Trust Plus Years (or a Give-It-Twice Trust).

After the last payout to the people you have chosen to receive income from the CRT.

Yes. The CRT funds are invested and have the potential to grow over time. But, because the funds are invested, they also have the potential to shrink and lower the payout.

Since the trust pays out 5% and the annual management fee is .75%, the CRT needs to earn more than 5.75% each year to grow. Anything it earns above 5.75% is added to your trust balance. (From 2011 – 2021, MB Foundation CRT investment returns exceeded 9% annual growth.)

No, it is considered ordinary income and is taxed at your personal tax rate.

Yes. Also, whenever you contribute extra money into your CRT you also receive a tax benefit for a charitable contribution.

A Charitable Gift Annuity is a “fixed income” tool that gives you a set amount of income each year that doesn’t change over your lifetime and the payout percentage is based on your age(s) at the time you establish the CGA. The CRT is a “variable income” tool based on 5% of the balance of the CRT funds at the end of each year.

You get an immediate taxable benefit on a portion of the amount you contribute that can be carried over for an additional five years as needed.

A portion of the income is non-taxed for a period of time. This varies depending on several factors. A qualified individual can run an illustration to give you an idea of how much will be taxable and non-taxable over the lifetime of the CGA.

A CGA can be written for one or two individuals and will last until they die.

Yes, that is an option. The payouts would cease and the balance would be given to the charity(ies) of your choice.

They are both excellent vehicles for charitable giving and lifetime income. It is always best to talk with a qualified individual to see which will be better for you.