Types of Gifts

There are many ways to make a gift to the campaign. Because the laws of the United States encourage charitable giving by offering many different tax benefits, the structuring of a gift can affect significantly the benefits to both the donor and the Conference. Following is a description of the most common types of gifts and their respective benefits:

• Cash or Securities – Donor makes outright or pledged gift in the form of cash, marketable securities or real or personal properties. Donor receives immediate tax deduction.
• Bequests – Gifts made by will, either outright upon the death of the donor, or in the form of a testamentary trust making the Florida United Methodist Foundation an eventual remainder beneficiary subsequent to the death of other prior beneficiaries. Donor’s estate receives tax benefits; gift lives on beyond the life of the donor.
• Charitable Gift Annuity – Donor transfers cash, marketable securities or property in return for a fixed annuity payment for life. The remainder of the annuity is paid to the beneficiary upon the death(s) of the donors(s). Donor receives a charitable income tax deduction in the year of the gift with a five-year carry-over period, if needed; and the ability to spread any capital gains tax due over the life expectancy of the donor(s); and partially tax-sheltered income from the annuity.
• Charitable Remainder Trust – Donor transfers cash, marketable securities or property to a trustee who pays the donor, and any specified survivors, income for life or a fixed number of years not to exceed twenty. Income may be either a fixed dollar amount or a percentage of the annually determined value of the trust. The remainder of the trust is paid to the Conference Foundation upon the death of the donor or any other named beneficiaries of the trust. Donor receives a charitable income tax deduction in the year of the gift, with a five-year carry-over period, if needed; total saving of all capital gains taxes on any appreciation in the assets used to fund the trust.
• Charitable Lead Trust – Donor transfers cash, marketable securities, or property into a trust from with the Conference Foundation receives the income for a period of up to ten years. At the end of that period, the donor receives the corpus freed from all capital gains. The donor receives an immediate charitable income tax deduction and elimination of capital gains taxes on the appreciate of securities or property in the trust.
• Charitable Life Estate Agreement – Donor gives a personal residence or farm, but retains the use of the home or farm for life. Donor receives an immediate charitable income tax deduction based on tables used to determine the Conference Foundation’s remainder charitable interest in the property.
• Life Insurance -- Donor names Conference Foundation as sole beneficiary and owner of a policy on the life of the donor and/or another person. The donor may give a paid-up policy or make payments on a new or existing policy for a period recommended not to exceed five years, at which time premiums should be paid in full. Donor receives a charitable income tax deduction for either the terminal value of a paid-up policy or any premiums paid toward a new policy or partially paid-up policy and the satisfaction of making a much larger gift than might otherwise have been possible.
• Retirement Savings – There are many advantageous ways to use qualified retirement plans to fund charitable gifts. Persons wishing to use such savings should consult their financial planner or tax consultant to determine whether this option would be beneficial to them.

These tax guidelines are intended only for illustrative purposes; persons should consult their own attorney or tax advisor for more specific information pertaining to their individual circumstances.