More Ways to Give

A Win-Win Gift

Looking for a way to give a significant gift? Your estate may allow you to do that while receiving reliable payments through a charitable remainder trust. A charitable remainder trust can provide you (or other named individuals) income for life from assets you give to the trust.

Benefits of a charitable remainder trust include:

• Potential for a partial charitable income tax deduction
• Potential for increased income
• Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

The annuity trust pays you, each year, the same dollar amount your choose at the start. Your payments stay the same, regardless of fluctuations in the trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do you payments. If the value decreases, however, so do your payments.

Turning Generosity into Income

You shouldn’t feel like you have to choose between supporting gospel ministry and your financial security. One gift that allows you to support Truth in Love Ministry while receiving fixed payments for life is a charitable gift annuity. This involves a simple contract where you make a gift to TILM and we, in return, agree to give you (and someone else if you choose) a fixed amount each year for the rest of your life.

Not only does this gift provide you with regular payments and allow us to further gospel outreach, but when you create a charitable gift annuity with TILM you can receive a variety of tax benefits.

Delay Your Payments

If you are younger than 60 or don’t need your payments immediately, you can set up a deferred gift annuity. This allows you to delay receiving payments until a later date—such as when you reach retirement.

Make a Tax-Free Gift with an IRA

You can make a difference and save on taxes. It’s possible when you support Truth in Love Ministry through your IRA.

A Special Opportunity for Those 70½ Years Old and Older 

You can give any amount (up to a maximum of $100,000) per year from your IRA directly to a qualified charity such as Truth in Love Ministry without having to pay income taxes on the money. Gifts of any value $100,000 or less are eligible for this benefit and you can feel good knowing that you are making a difference. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution or QCD for short.

Why Consider This Gift?

Your gift will be put to use today, allowing you to see the difference your donation is making.

Beginning in the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).

You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.

Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

Frequently Asked Questions

I’m turning age 70½ in a few months. Can I make this gift now?

A. No. The legislation requires you to reach age 70½ by the date you make the gift.

I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?

A. Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to Truth in Love Ministry. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

Can my gift be used as my required minimum distribution?

A. Yes, absolutely. Beginning in the year you turn 72, you can use your gift to satisfy all or part of your RMD.

Do I need to give my entire IRA to be eligible for the tax benefits?

A. No. You can give any amount under this provision, as long as it is no more than $100,000 per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.

When do I need to make my gift?

A. We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA, please mail your check by Dec. 18 in order to give us time to process your gift before the end of the year.

I have two charities I want to support. Can I give $100,000 from my IRA to each?

A. No. Under the law, you can give a maximum of $100,000 per year. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.

My spouse and I would like to give more than $100,000. How can we do that?

A. If you have a spouse (as defined by the IRS) who is 70½ or older, they can also give any amount up to $100,000 from their IRA.

Can I use the transfer to fund life-income gifts like charitable remainder trusts or charitable gift annuities?

A. Unfortunately, the law does not permit using a qualified charitable distribution to establish a charitable gift annuity or a charitable remainder trust.

I’ve already named Truth in Love Ministry as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?

A. By making a gift this year of any amount up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.

For Those 59½ Years Old or Older

If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.

At Any Age

No matter your age, you can designate Truth in Love Ministry as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It’s simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download a form from your provider’s website.

Tip: It’s critical to let us know of your gift because many popular retirement plan administrators assume no obligation to notify a charity of your designation. The administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed. We would also like to thank you for your generosity.

Provide For Your Loved Ones and TILM

Do you want to benefit from the tax savings that result from supporting TILM, yet you don’t want to give up any assets that you’d like your family to receive someday? You can have it both ways with a charitable lead trust. You give assets to a trust that pays TILM set payments for a number of years, which you choose. (The longer the length of time, the better the potential tax savings to you). When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

There are two ways charitable lead trusts make payments:

A charitable lead annuity trust pays a fixed amount each year to TILM and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, for example, the payments to TILM go up as well.

Transforming Realty to Gift Reality

Want to make a big gift to Truth in Love Ministry without touching your bank account? Consider giving real estate. Such a generous gift helps TILM continue gospel outreach for years to come. And a gift of real estate also helps you. When you give appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property’s maintenance costs, property taxes or insurance.

Another benefit: You don’t have to hassle with selling the real estate. You can deed the property directly to TILM or ask your attorney to add a few sentences in your will or trust agreement.

Ways to Give Real Estate

You can give real estate in the following ways:

An outright gift. When you make a gift today of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property’s full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating property, you also eliminate capital gains tax on its appreciation.

A gift in your will or living trust. A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support gospel outreach with a larger gift than you could otherwise. In as little as one sentence or two, you can ensure that your support for TILM will continue long into the future.

A retained life estate. Perhaps you like the tax advantages a gift of real estate to TILM would offer, but you want to continue living in your personal residence. You can transfer your personal residence or farm to TILM but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though TILM would not actually take possession of the residence until you no longer need it, since your gift cannot be revoked, you qualify for a federal income tax charitable deduction for a portion of your home’s value.

A deferred charitable gift annuity. Are you tired of hassles of maintaining your property such as paying taxes, utilities and repair bills? Consider donating the property to TILM in exchange for reliable payments for life for you (and someone else, if you choose). When you arrange a charitable gift annuity, you receive a federal income tax charitable deduction in the year you set up the gift annuity when you itemize on your taxes. If you use appreciated real estate to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. A gift of unmortgaged property to fund a deferred gift annuity is preferable and generates the greatest tax benefit.

A charitable remainder unitrust. You can contribute any type of appreciated real estate you’ve owned for more than one year, provided it’s unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.

A charitable lead trust. This gift can be a wonderful way for you to benefit TILM and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.

A memorial or endowed gift. A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.

A donor advised fund. When you transfer real estate to your donor advised fund, you avoid capital gains taxes and qualify for a federal income tax deduction based on the fair market value of the property when you itemize on your taxes.

A Gift that Honors a Life

If you have a loved one who was passionate about gospel outreach, establishing a memorial or tribute gift is a meaningful way to honor your loved one or celebrate a special occasion such as a birthday while supporting Truth in Love Ministry. Your memorial or tribute gift will be a lasting tribute to your loved one and make an eternal difference in many lives.

Invest in the Future

An endowment gift to Truth in Love Ministry today provides a brighter picture for the future. When you make a donation to our endowment, you give a gift with both immediate and long-term benefits.

Here’s how it works: Endowment donations are invested. A portion of the annual income from the investment is used to address immediate needs at Truth in Love Ministry. The remaining funds are reinvested to ensure indefinite support.

Leverage the Power of a Private Foundation

A donor advised fund, which is like a charitable savings account, gives you flexibility to recommend how much and how often money is granted to Truth in Love Ministry and other qualified charities. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts.

You can also create a lasting legacy by naming Truth in Love Ministry the beneficiary of the entire account or a percentage of the fund. With a percentage, you can create a family legacy of giving by naming your loved ones as your successor to continue recommending grants to charitable organizations. Contact your fund administrator for a beneficiary form.