Remembering Deermeadows: Legacy Giving - Part 4

June 18, 2019

BY:  Ned Hamil, Chairman Deermeadows Baptist Permanent Endowment Fund Committee

This is Part 4 in a 4-part series presenting ideas you may want to consider in leaving a charitable gift to the Deermeadows Baptist Church Permanent Endowment Fund.

Those of us fortunate enough to be living in or near retirement often worry about having enough money to live out our days in relative financial security. The following discussion addresses situations where we have reason to believe we have sufficient money for those purposes and a potential residual estate. Some changes in the 2018 tax law work to our favor.

Charitable Giving Accounts

If you invest in stocks and bonds through an Investment Brokerage Firm most likely they will set up a Charitable Giving Account (CGA) for you at no cost.

You may ask, "Why would I want to set up a Charitable Giving Account?" There are multiple reasons but one of the greatest features is its flexibility. It is of particular value if you wish to make charitable contributions to multiple institutions over time but do not want to go through the complexity each time you wish to make a gift. Several of the ideas we have discussed previously work well inside a CGA. As an example, if you have an appreciated stock but you may want to hold on to some of the value for personal use, you may gift the exact number of shares you need for a current gift. You may have a tax year where income from all sources is pushing up your tax liability. Use an appreciated stock as a gift to the Charitable Giving Account to reduce your tax liability. The value of the gift, while deductible in that year, may be parsed out to the charity(s) over multiple years.

Minimum Required Distributions may also be directed to a CGA. This allows you to avoid tax liability for that year and you may parse out the contributions to individual or multiple charities over various tax years at your discretion. 

CGAs are easy to establish and all gift actions can be accomplished on line. I have listed only a few of the advantages of a CGA.

Ask your Financial Advisor, CPA or Broker if a Charitable Giving Account is appropriate for you. It is normally established at no cost and helps facilitate multiple gifting scenarios.

Disclaimer: This information is not to be considered as financial or investment advice. One should contact their CPA, Financial Advisor or Attorney to determine if any of the techniques are appropriate for your individual situation. You may feel free to contact a member of the Deermeadows Endowment Committee for general information about the topics discussed.

CATEGORIES: Legacy Giving