Additional Resources
A man has made at least a start on discovering the meaning
of human life when he plants shade trees
under which he knows full well he will never sit.
D. Elton Trueblood
Below are a variety of ideas, information, and resources to support your efforts in planned giving and endowment building programs. Each topic is indicated at the top of the page.
Things a Pastor Can Do to Encourage Planned
Gifts
Preach
on Biblical themes pertaining to being good stewards of one’s trust from God (including one’s income and accumulated possessions).Teach
in adult education settings the subject of responsible Christian stewardship in matters of personal financial planning and estate planning.Counsel
with persons as a part of your pastoral ministry on the importance of wills and estate planning, especially in conjunction with premarital counseling, preparation for baptism of children, counseling at times of health crisis or at the death of a spouse, and pre-planning funeral arrangements.Encourage
the formation of a “Permanent Endowment Fund Committee” in the local church which will in turn seek to promote bequests, life income gifts, and other planned gifts in the life of the congregation.Educate
yourself about planned giving opportunities drawing upon basicinformation available through United Methodist Foundation. Study and become familiar with the resource, Planned Giving Handbook, and other sources which the Foundation can recommend.
Communicate
with church members through the various church media channels about the importance of Christian estate planning and the opportunities for giving through careful, prayerful, and creative gift planning.Encourage
the lay leadership to plan (and attend, and support) stewardship eventsin the local church such as Estate and Gift Planning Workshops, Estate Planning Seminars, workshops on Creative Gift Planning, and Financial Planning Seminars.
Develop
a long-range planning process with the congregation culminating in a mission statement which includes endowment funding for the church’s mission and ministry to and with future generations.Acknowledge
personally and publicly the receiving of bequests and other plannedgifts which benefit the local church as a way of encouraging others as well as a way of saying “thank you” to donors.
Celebrate
with gratitude what faithful friends have made possible through plannedgifts that support the ministry and mission of the church today (in other words, what is being made possible because of planned giving and endowment funding).
Evaluate
your own estate plan. (Have you included the church or other charitable institutions in your will?)Minister
patiently and faithfully since this important aspect of Christian stewardship takes time to “bear fruit.”Tax Laws Affecting Charitable Donations
Compiled by the Office of the Treasurer
N. C. Conference - The United Methodist Church
The IRS has specific requirements to be met when individuals deduct charitable contributions for income tax purposes. We encourage all churches to become familiar with the following requirements. If additional detail is needed, contact your church’s accounting advisors or the Conference Treasurer’s Office, 700 Waterfield Ridge Place, Garner NC 27529. Toll-free phone: 800-849-4433 or 919-779-6115.
" Beginning January 1, 2007, no deduction is allowed for any contribution unless
the taxpayer substantiates the contribution by a contemporaneous written acknowledgment from the donee organization.
" The donor is responsible for obtaining a written acknowledgement of any
donation. Generally, receipts are provided by recipient organizations following the donation or no later than January 31 of the year following the donation.
" Receipts may be prepared separately for each contribution or the church may
make periodic (annual, quarterly, monthly) statements disclosing the required information for each contribution made during that period. (There is a $1,000 penalty for organizations knowingly providing a false receipt.)
" The written receipt must state the amount of the cash given or a description
of the tangible property. The value of donated property is not included on the receipt.
" The written receipt must state whether the church provided goods or services
in consideration for all or part of the cash and property contributed. Churches do not include religious services, but unrelated child care, meals, etc. would be stated on the receipt. A description and good-faith estimate of the value of any goods or services provided, or, if the provided goods and services consist solely of intangible religious benefits, a statement to that effect must be written on the receipt.
" Churches and other charities are required to inform donors what portion of gifts
over $75 are deductible when the donor receives goods or services in return.
" A written statement must inform the donor that the amount of the contribution
that is deductible for Federal income tax purposes is limited to the excess of the amount of any money (and the value of any property) contributed by the donor over the value of the goods or services provided by the organization.
" The written statement must also provide the donor with a good faith estimate of
the value of goods or services furnished to the donor by the church. Token, or de minimis, goods or services are excluded from this provision.
" If the church provided no goods and services to the donor in consideration of
Sources:
PUBLICATION 1771, CHARITABLE CONTRIBUTIONS: SUBSTANTIATION AND DISCLOSURE REQUIREMENTS. Publication 1771 provides information for organizations and donors about the substantiation and disclosure requirements for charitable contributions. To order paper copies of Publication 1771, call: 1-800-TAX-FORM (829-3676). Download at http://www.irs.gov/pub/irs-pdf/p1771.pdf
PUBLICATION 1828, Tax Guide for Churches and Religious Organizations. Publication 1828 is a general guide providing an overview of tax issues relating to churches.
Internet Resources
The following websites may be helpful as your church explores the creation of a planned giving focus. Due to the constantly changing nature of the internet, this cannot be considered a comprehensive list.
Christian Stewardship
Center for Christian Stewardship (UMC) www.gbod.org/stewardship
Planned Giving section of Center for Christian Stewardship (UMC) www.gbod.org/stewardship/giving.asp
Frequently Asked Questions - Giving
archives.umc.org/interior.asp?ptid=1&mid=1290 United Methodist Giving – Sharing God’s Gifts www.umcgiving.org/content/default.asp
Why We Apportion: A Theology of United Methodist Giving www.gcfa.org/PDFs/AUWhyWeApportion.pdf
Good Sense Ministry – A Biblically-based stewardship ministry for local churches www.goodsenseministry.com/index.asp
Socially Responsible Investing
General Board of Pension and Health Benefits of The United Methodist Church: Socially Responsible Investing and Fund Performance
www.gbophb.org/sri_funds/index.asp
General Board of Pension and Health Benefits of The United Methodist Church: Investment Strategy Statement
www.gbophb.org/UserFiles/file/sri/investment_policy.pdf
General Council on Finance & Administration: Statement of Investment Guidelines www.gcfa.org/PDFs/LMPropEstatePlngSec4.pdf
Legal and IRS Resources
NC Conference Treasurer’s Office www.nccumc.org/treasurer/
General Council on Finance & Administration: Legal Manual www.gcfa.org/ls_legalmanual.html
General Council on Finance & Administration: Dictionary of Legal Terms www.gcfa.org/PDFs/LMDictionary.pdf
Better Business Bureau Wise Giving Alliance www.give.org/
IRS Publication 1771:
Charitable Contributions: Substantiation and Disclosure Requirements www.irs.gov/pub/irs-pdf/p1771.pdf
IRS Publication 1828:
Tax Guide for Churches and Religious Organizations www.irs.gov/pub/irs-pdf/p1828.pdf
UM Foundations
United Methodist Foundation, Inc. – North Carolina Conference www.umf-nc.org
United Methodist Foundation of Western North Carolina, Inc. – Western NC Conference www.umfoundationwncc.org/
National Association of United Methodist Foundations www.naumf.org/
United Methodist General Resources
North Carolina Conference of The United Methodist Church www.nccumc.org
The United Methodist Church www.umc.org
Current and Deferred Giving Program of the General Board of Global Ministries http://gbgm-umc.org/mission_programs/mga/8.07/cdfp.cfm
Printed Resource Materials
Critical to the success of any task are the selection and proper use of the right “tools.” Your closest contact point for these “tools” is United Methodist Foundation, Inc., Raleigh, North Carolina. A wide variety of leaflets, brochures, books, and other resources available from sources too numerous to list in this publication. But, a call or letter to the Foundation office will bring prompt assistance in locating the best resources to meet the needs of your church. This contact with the Foundation office is suggested as the first step in your search for resources with which to build and operate a planned giving and endowment program in your church.
While the list of books on the subject of planned giving is almost unlimited, United Methodist Foundation can assist you in locating printed resources on subjects for which you have an interest or need. The United Methodist General Board of Discipleship maintains a bibliography of titles within their “Center for Christian Stewardship” website. Visit http://www.gbod.org/stewardship/bibliography.asp for a listing of books on stewardship, planned giving, and money issues within the church.
There are many sources from which you can secure brochures and leaflets on specific planned gifts. The following firms produce brochures and booklets on subjects related to charitable estate and gift planning. Contact United Methodist Foundation to find out which samples are available in the office. The Foundation also has several brochures we have created in-house which may be helpful to your church.
The Sharpe Group
6410 Poplar Avenue, Suite 700 Memphis, TN 38119
800-238-3253
www.sharpenet.com/pubs/ The Stelter Company
10435 New York Ave. Des Moines IA 50322 (800) 331-6881
www.stelter.com
Taxwise Giving & Philanthropy Tax Institute PO Box 299
Old Greenwich, CT 06870-0299 (800) 243-9122
www.taxwisegiving.com
Some examples of the subjects covered by the brochures are: A Guide to Giving
How to Make a Will That Works Giving Securities
Giving Real Estate
Better Estate Planning
Giving Through Life Insurance Giving Through Your Will Reflecting on Tomorrow
Do not let limited finances prevent your church from launching a planned giving and endowment program. While good resource materials are extremely important, it is also possible to secure some which are within your budget. Our local Foundation has developed some printed resources which are available at minimum cost (and in some cases at no cost) to the local church.
United Methodist Foundation publishes a newsletter entitled Legacies which gives helpful information about estate planning and charitable gift planning and the Foundation office will be happy to place the names of local churches leaders and other persons on the mailing list to receive this newsletter at no cost to them. (Send the names and addresses to the Foundation office of those you believe would benefit from this newsletter.).
If you need assistance in the selection of printed resources, call or write United Methodist Foundation today.
Ideas for Bulletins and Newsletters
Selected statements on a variety of topics, printed in church bulletins and newsletters, can be an effective way of communicating ideas that can in turn prompt decisions and action on the part of members of the local church.
Estate Planning
1. Preparing an estate plan is good Christian stewardship—saying thanks to God, expressing your love and concern for family, and showing charity toward others.
2. Did you know that, for purposes of estate taxation, there is no limitation on the size of a charitable gift that you may give to your church at the time of your death? No matter how large, the gift is deductible for estate tax purposes.
3. Think about the part you want to play in your church’s future. Naming your church as a beneficiary in your estate plan to create an endowment can assure your continued participation in the life and mission of your church far into the future.
4. Remember, if you have no will or trust, state laws will determine who will inherit your property at your death. State laws do not include your church or any other charity as a beneficiary.
5. Consider naming your church as a beneficiary in your will or living trust. The gift could be a set dollar amount, a percentage of your estate, the remainder after other gifts are made, or a gift of that part of the estate left if designated heirs are deceased
6. Giving to your church through your will is a good way to continue your support off your church beyond your lifetime. When your estate plan is prepared, consider including plans for a gift to your church.
7. Did you know that the laws of the state where you are living at the time of your death will direct how your estate is settled if you have no will of your own? These laws might not leave your property to the people you want to receive it. And, these laws definitely don’t leave any gift to your church or any other charity. Would you not rather make these decisions yourself?
8. How long has it been since you updated your will? Does it still express your wishes? Does it leave a gift to your church to carry on its ministry after your death?
9. You can share your faith beyond your lifetime by careful estate planning which includes your church in your will. During your lifetime you will have the joy of knowing that whatever you do not use in this life will continue in ministry through your church after your death.
10. When your estate planning documents are prepared by your attorney, you can include your church as the final beneficiary to receive any benefits that remain after other beneficiaries are remembered.
11. There are many reasons to update your estate planning documents. One is to include a gift to your church.
12. Have circumstances changed since you last updated your estate plan? Do your current estate planning documents carry out your commitments to your church? If not, amend your documents now.
13. Did you know that over 50% of all people at the time of their death do not have a will or living trust?
14. Do you know who your heirs will be? Is your church included in your will? Without a will, state laws will determine who receives your estate and no charity will receive a gift from your estate. Be sure your estate planning is up-to- date and expresses your wishes.
15. Proper estate planning can reduce administrative time, expense and inconvenience. Careful estate planning can also be one of the best gifts you give your family.
16. Remember your church in your will and living trust.
17. Who needs estate planning? Every adult who is legally competent, who owns anything and cares about who receives it at the time of their disability or death needs a will. In addition, estate planning is necessary for anyone who wants to leave a bequest for their church.
18. Have you moved to another state since signing your estate planning documents? If so, consider having the documents checked by an attorney in the new state. In addition, this might be a good time to consider naming your church to receive a gift through your estate plans.
19. Your will is the proper place to name the guardians for your children should both parents die while the children are still minors. Pick their guardians yourself, rather than leaving this decision to the courts (as will happen if you do not have properly drawn legal documents).
20. Good stewardship requires us to think of the future. Have your estate plan prepared now and express your good stewardship in ways that will bless your family and your church.
21. “Later” can be too late. Don’t delay having your will drawn. Make sure your estate plans are in place so that your wishes will be carried out to benefit your family. Gifts you plan for your church through your will can help your church continue to minister and serve.
22. Be sure that your estate planning documents are properly prepared. A homemade will “might” work, but unless it is properly written it might cause unnecessary expenses and delays—and worst of all, it might not accomplish what you want to happen. The writing of your will is a job for which you need your attorney’s assistance.
23. The costs of having your will drawn by an attorney can be a terrific bargain. It may save many times its cost in taxes and administrative expenses to your heirs. Make sure your attorney also knows of your desire to include your church in your estate plans.
24. Did you know that you can name the church a beneficiary of your estate in several ways? Consider gifting the church a specific amount, a percentage of your estate, the remainder of the estate after other gifts are made, or portions of your estate whose beneficiaries predecease you.
26. Have you ever heard that “wills are for rich people?” That’s right! But they are also “for poor people” and for everyone in between. Your will relates to everything God has entrusted with you, and it can be a powerful statement of your Christian stewardship.
27. Who needs a will? Every adult who owns anything and who care about what happens to it, everyone who cares about their family, and everyone who wants to include their church’s future in their estate planning needs a will.
28. When was the last time your will had a check-up? Does it express your desires? Does it include your church which means so much to you?
29. Have you named a residual beneficiary in your will (to receive what remains when all other bequests are fulfilled)? Have you considered including your church as the residual beneficiary?
30. When you need a will, it’s too late to have one drawn. Don’t wait. And, don’t forget your church.
31. Grandpa didn’t have a will, but Grandma does. She had to settle Grandpa’s estate without one, and she now knows how important a will really is. Do you have a will?
32. Are you leaving a legacy of “red tape” for your heirs? A legal will drawn by your attorney will cut out the “red tape” and accomplish what you want to happen following your death.
Life Insurance Gifts
1. Life insurance is a way to make a larger gift to your church than you might otherwise be able to afford. Consider naming your church as a beneficiary of any life insurance policy.
2. If the needs of other beneficiaries will be met in other ways, why not make your