Brentwood Christian Church August 2016 Giving to the Church Our purpose today is to share information about the church budget so we have a common understanding of what it is and how it aligns with the values of the church Brentwood Christian Church August 2016

Haven’t given to a church before Not in my budget Keep forgetting Why not? Haven’t given to a church before Not in my budget Keep forgetting Don’t carry cash Checkbook is at home Not convenient I have assets, not cash

An Approach That Works for Most What do you want to give What time of the month works best for your budget Set up an automatic payment plan Online bill pay Automatic withdrawal through Vanco Check in the mail

Weekly offering plates The Basics Weekly offering plates Cash & Checks The good Simple and convenient The not so good Fall behind if not at Church

The Basics (continued) Giving Electronically via Vanco The good Planned giving Automatic- Never forgets Safe Align timing with family cash flow The not so good Needs to be set up

The Basics-Something new! Text to give Coming soon The good Quick and easy way to respond Give any amount Low administrative costs to BCC How to do this? One-time online setup Cell number…Payment method…4 digit PIN

Become a member, join a committee Short on Cash? Volunteer at BCC Advantages: Your skills may be more helpful than your cash! Become a member, join a committee Sell household items and donate the proceeds Ebay Annual BCC garage sale!

Short on Cash? If you perform unpaid work for BCC, you may be able to deduct some out of pocket expenses Must be unreimbursed Written acknowledgment from BCC Submit list of expenses with receipts Keep record of the time, date, place, and church activity associated with each expense Document your mileage Must be for volunteer services (not Sunday morning) Unfortunately there is no deduction for the value of your service(s)

Alternative Giving-Donating via your IRA Charitable giving via your IRA “So I have this small retirement account that makes me take out cash every year that I don’t need. If I don’t take the cash, I am penalized. I can avoid the penalty by taking the cash, but then I get taxed on it!” (RMD or Required Minimum Distribution rule for IRA) Begins at Age 70.5 Charitable IRA Giving Made Permanent Individuals 70½ and older can transfer up to $100,000 per year from their IRAs to a qualified charitable organization

Alternative Giving-Donating via your IRA Advantages These transfers count as part of your yearly required minimum distribution, but are not taxable to you. Tax Benefits The charitable distributions aren’t taxable and are not counted as extra income that could cost you itemized deductions, personal exemptions, or trigger more tax on your Social Security benefits. Whether or not you itemize deductions, this planning technique should be considered by those age 70½ and older with an IRA.

Alternatives-Donating Appreciated Stock/Funds Direct donation of stock or mutual fund to BCC Alternative to cash/checks Plan this with your Financial Advisor early December Advantages Full tax benefit of the fair value of the stock (assuming you held 12 months) O’Reilly, Great Southern, US Bank, etc. No taxable income to you Rather than selling the stock and paying the tax No taxable consequence to BCC

Alternatives-Giving through your Will or Trust Making a gift through your Will or Trust Flexible, easy to arrange, and can be changed with life circumstances Many options Gift of specific amount Gift of specific property Designate a specific percentage of your estate Give the residue/remainder after other bequests Highly recommend working with local attorney Unless ultra wealthy, no tax benefit

Alternatives-Charitable Remainder Trusts Wills and trusts are great, but I’m not dead yet! What is a Charitable Remainder Trust? Trust that provides income stream to you with remainder going to BCC. How does a Charitable Remainder Trust work? “Split” interest-giving vehicle that allows you to make contributions to the trust and be eligible for a partial tax deduction. Name yourself (or someone else) to receive potential income stream for a term of years and name BCC to be beneficiary of donated assets

Alternatives-Charitable Remainder Trusts Advantages Preserve the value of highly appreciated assets: For those with low basis or highly appreciated assets, including non-income-producing property, a CRT allows you to contribute that property to the trust and when the trust sells it is exempt from tax. In other words, you preserve the full fair market value of those assets rather than reducing it by large capital gains allowing more money for the income beneficiary (you) and charitable beneficiary (BCC).

Alternatives-Charitable Remainder Trusts Advantages Income tax deductions: With a CRT, you have the potential to take a partial income tax charitable deduction when you fund the trust, which is based on a calculation on the remainder distribution to the charitable beneficiary. Tax exempt: You may consider donating low-basis assets to the trust so that when sold, no income tax is generated to you and you eliminate the capital gains tax on the sale of the asset. Complicated Recommend a team of competent professionals

The Best Way to Give to BCC Tell others about Brentwood! Growing the church membership does not cost you anything On average, each new giving unit = $1,450 annually

Tell Others About Brentwood! Share the website Share Facebook/Retweet Phil, Emily, and BCC feeds Know your story and be comfortable telling it The “why are you a member?” elevator speech Intangibles” motivate people, have your examples ready What is your goal in sharing your BCC experience? Write it down, no seriously!