United Methodist Church Bethlehem First United Methodist Church Thank you so much for allowing me to visit with you today. (Conversation specific to them i.e. children, church activities). Legacy Ministry

Why have an Endowment Fund? What is an Endowment? An Endowment Fund is a permanent fund or source of income for our church that contributes to the fulfillment of our church vision. The funds that are contributed to the Endowment Fund are invested in perpetuity. The proceeds of the fund are used to fund ministry for the church. Why have an Endowment Fund? An Endowment Fund Says That Our Church: Believes in its future Wishes to be guided in stewardship by the belief that all we have is from God Wants to build a sense of permanence Desires as a church family to be good stewards even as we expect each member to be a good steward Wishes to go the extra mile in providing new services and programs Wants to create a legacy for future generations I’m meeting with you today to share some information about our church endowment. Have you heard of our endowment fund? What have you heard? Our church has established an endowment which is a permanent fund or source of income for our church that contributes to the fulfillment of our church vision. The funds that are contributed to the Endowment Fund are invested in perpetuity which means forever. The proceeds of the fund are used to fund ministry for the church. This list has been developed by our church to describe why we believe an endowment fund is important. What do you think?

Who Manages the Endowment? Where may I give? Our members may designate their legacy gift to the following funds: General Endowment Fund Music Ministry Endowment Fund Building and Grounds Endowment Fund Youth Endowment Fund Named fund: This may be set up in memory or honor of someone and/or for a specific purpose with a minimum contribution of $20,000 Legacy Fellowship The purpose of Legacy Fellowship is to recognize those who have made a planned gift or given to the Endowment. By allowing us to list your name, we hope that this will also be an inspiration for others to follow. Each year, we will have an gathering of the Legacy Fellowship to report on our endowment and to share how we have used the proceeds. In addition, we will host a Legacy Sunday which will include a listing of your name in the bulletin. We have established several funds in the endowment for special purposes. These allow members to decided if they would like to designate their gift for a ministry that is important to them. In addition, if a member would like to establish a new fund in memory or honor of a loved one, they may do so with a $________ minimum contribution. What do you think might interest you? To give to the general endowment fund or to designate your gift? We have also established our “Legacy Fellowship” that allows us to recognize persons who have made planned gifts or made gifts to the endowment. This also helps us to encourage others to follow their example. We plan to host an annual event to recognize our Legacy Fellowship, report on the endowment and invite others to join us. Would this be something that would interest you? One question that we are asked frequently is “Who manages the endowment?” We have chosen the Georgia United Methodist Foundation to help us invest the funds under the oversight of the Endowment and Planned Giving Ministry Committee of the church. Who Manages the Endowment? The Bethlehem First UMC Endowment is managed by the Georgia United Methodist Foundation and is overseen by the Endowment and Planned Giving Committee of the church.

OPTIONAL SLIDE Bethlehem First United Methodist Church Legacy Fellowship Joe and Mary Jones Sam and Judy Smith Alfred and Lisa Thompson Tom and Patricia Young Here are some of the persons who have made commitments and members of our Legacy Fellowship. We have their permission to list their names. I’m sure that you know some of these persons?

How can you give to the Endowment Fund? Gifts Given Today Gifts Given After Passing How can you give to the Endowment Fund? Cash Stocks and Bonds Real Estate Life Insurance Savings Bonds Cash Stocks and Bonds Real Estate Life Insurance Death Benefits Savings Bonds Bequests Charitable Trusts and Annuities Retirement Plan Assets Sometimes people wonder what they could give. It’s amazing how often we don’t consider options that we may have so I wanted to share a list with you today. A legacy gift can be a gift to the endowment at anytime in your life. Stock and cash are just two examples of a legacy gift given today. Others are Real Estate, Closely Held Stock, Life Insurance, Tangible Personal Property, and Savings Bonds. These same gifts can be made at the end of life. In addition, Bequests, Charitable Trusts and Annuities, and Retirement Plan Assets are examples of typical end of life gifts. We will be discussing these options in a few minutes. Have you heard of persons who made these types of gifts to their church, college or other non-profit?

Family/Friends Church/Charity Government Estate Goals Health Care Charitable Legacy Reduce Probate Costs Reduce Estate Taxes Gift of Peace to Family Income for Family Principal for Family Estate Distribution Only Three Places There are a number of very good things that can happen with estate goals and a plan. First, a thoughtful plan can provide the gift of peace for a family. Unfortunately, too often the lack of a plan has resulted in family conflict. If you have a good plan and have provided appropriately for your family members, you can leave one of the best gifts and that’s the bequest of peace. We all know persons who have died without a will, and it causes pain for the survivors. (May include a short statement about your personal will: ie. “I didn’t make my will until I was 56.”) (If appropriate, you may ask this - Do you have a will?) Second, you can consider whether or not children or other heirs should receive income or principal and what the best time is for them to receive those transfers. Third, a good plan can reduce probate costs and estate taxes, especially in a large estate. Your plan should also provide for your healthcare. You may be perfectly healthy today, but there could be a time when you will need more money for health care needs. Are any of these estate goals important to you? There are only three places for the proceeds of an estate to go – family and friends, churches and charities, or the government in taxes. Family/Friends Church/Charity Government

Why am I visiting You? Tell my story: How I gave and why this is important to me Asking the Leadership of the Church to give first Will be asking the rest of the congregation to commit after _________ Prayerfully request that you consider a Legacy Gift and complete the Confirmation Form and return it to the church by that date Hope that Leadership Commitments will motive others in the congregation to follow So, you may be asking yourself, why am I visiting you today? Besides giving you information, I would like to share why this ministry is important to me and why I made my commitment. (GIVE YOUR STORY AND HOW YOU GAVE. INCLUDE TYPE OF GIFT IF POSSIBLE. KEEP IT SHORT.) We are also asking the leadership in the church to give first in order to motivate others to give. We are hoping to ask the rest of the congregation to consider making a commitment by (month, year). We would like to prayerfully request that you consider making a Legacy Gift and complete the confirmation form and return it to the church by (date). I included a copy of the confirmation form in this packet. Do you think this might be possible?

Language for Leaving a Gift in Your Will This is some language to help your attorney prepare your will. A carefully written will protects your estate and helps you fulfill your personal goals. 1. Bequest of a Final Tithe I give, devise and bequeath an amount calculated to be ten percent (10%) of my estate to Bethlehem First United Methodist Church of Bethlehem, GA. For the purposes of this Item ___ of my will, the term “my estate” shall mean and include all property that I own at my death including property that passes outside my Will to a joint owner or designated beneficiary. 2. Bequest of cash "I give and bequeath the sum of ten thousand dollars ($10,000) to Bethlehem First United Methodist Church of Bethlehem, GA.“ 3. Bequest of an asset “I give and bequeath one hundred (100) shares of stock of the Coca-Cola Company to Bethlehem First United Methodist Church of Bethlehem, GA.” 4. Bequest of a percent of the estate I give, devise and bequeath an amount calculated to be twenty percent (20%) of the rest, residue and remainder of my estate to Bethlehem First United Methodist Church of Bethlehem, GA. For the purposes of this Item ___ of my will, the term “my estate” shall mean and include [only the property in my probate estate that passes under my Will] OR [all property that I own at my death including property that passes outside my Will to a joint owner or designated beneficiary]” The next few pages are resources that will explain the planned giving options available. The most common gift is a bequest and the next two pages explain some different bequest types. Here are 7 different ways to leave a bequest in your will. They all have a different purpose depending on your particular needs. I’m going to leave you a copy of this and suggest that you discuss these options and the wording with your attorney.

Language for Leaving a Gift in Your Will 5. Contingent Bequest "If my brother John Doe survives me, I give, devise and bequeath an amount calculated to be twenty percent (20%) of the rest, remainder and residue of my estate, whether real or personal, and wherever located to John Doe. If John Doe does not survive me, then I give, devise and bequeath twenty percent (20%) of my residuary estate, whether real or personal property and wherever located to Bethlehem First United Methodist Church of Bethlehem, GA. For purposes of this Item __ of my will, the term “my estate” shall mean and include [only the property in my probate estate that passes under my Will] OR [all property that I own at my death including property that passes outside my Will to a joint owner or designated beneficiary.]” 6. Gift of an IRA Because income taxes must be paid on funds withdrawn from an IRA by an individual, using your IRA to make a gift to your church is very effective since your church does not have to pay the tax. You must use the official beneficiary designation form provided by the custodian of the IRA (bank, brokerage house, etc.), complete and sign the form, and deliver it to the custodian so that it is in their records. Typical language would be: “I designate the Bethlehem First United Methodist Church of Bethlehem, GA, as beneficiary of twenty percent (20%) of my account.” 7. Bequest to create permanent endowment fund at the GUMF to benefit church or ministry "I hereby give, devise, and bequeath [insert amount, percentage of the estate, or "the rest, residue, and remainder of my estate"] to the Georgia United Methodist Foundation, Inc., Peachtree Corners, Georgia ("Foundation"), its successors and assigns, for the purpose of creating a permanent endowment fund ("Fund"), from which distributions will be made for the benefit of Bethlehem First United Methodist Church of Bethlehem, GA. Such fund shall be known as [insert name of fund]. I understand that the Fund shall be administered by the Trustees of the Foundation. If you would like to set up a permanent endowment fund for your church at the Georgia United Methodist Foundation, please call toll free 1.877.220.5664 or go to www.gumf.org for complete information and documentation. NOTE TO PRESENTER: If you have left a gift to the church in your will, you may want to share which one you chose.

GIFTS YOU CAN MAKE NOW YOU CAN MAKE NOW Type of Gift How to Give Benefits Make a quick and simple gift. Appreciated Securities Transfer stock or mutual funds to your church. Donor avoids capital gains taxes and receives an income tax deduction; church sells shares tax-free. Avoid capital gains tax on the sale of a home or other real estate. Appreciated Real Estate Donate property to your church. Immediate income tax deduction and avoidance of capital gains tax. Make a gift that allows flexibility and your input on how funds will be distributed. Donor Advised Fund Create an agreement whereby the Foundation manages the assets; you and/or family members advise the Foundation regarding charitable disbursements. Immediate income tax deduction, flexibility and an opportunity to practice philanthropy on a regular basis. Make a significant gift with little cost to yourself. Life Insurance Designate your church as a beneficiary. Future gift to church. Give your personal residence or farm, but continue to live there. Retained Life Estate Designate the ownership of your home to your church but retain occupancy. Charitable income tax deduction and lifetime use of your home. Avoid taxation on retirement plan assets. Retirement Plan Name your church as beneficiary of the remainder of the assets after your lifetime. Avoidance of heavily taxed gift to heirs. YOU CAN MAKE NOW The next three pages outline various types of gifts that can be made. These charts are very good because you can compare options in terms of your goals, how to give, and the benefits of each. These are also good resources for you to study at your leisure. This chart is about gifts you can make right now. Let’s take a quick look at this chart and you can ask me questions if you would like. I can’t guarantee that I will know all of the answers and if I don’t, I’ll write them down and get back to you.

GIFTS YOU CAN DEFER Your Goal Type of Gift How to Give Benefits Defer a gift until after your lifetime. Bequest in Will Leave your legacy and remind loved ones of your faith by tithing part of your estate to the church. A bequest can be a specific amount or asset, or a percentage of your estate. A residual bequest assigns the amount left in the estate after all other distributions have been made. Your estate receives a tax deduction. The church receives your gift when the estate is settled. Make a deferred gift, maintain access to assets, avoid probate. Living Trust Donor places assets into a trust; retains control during lifetime. Foundation becomes trustee upon death of the donor, and makes distributions as directed by donor. Privacy, flexibility, control of trust for lifetime, possible estate tax savings. These are gifts that you defer until the end of life. This chart covers Bequests and Living Trusts.

LIFE INCOME ARRANGEMENTS Your Goal Type of Gift How to Give Benefits Supplement income with fixed annual payments. Charitable Gift Annuity Enter into a contract with the Foundation. Foundation pays you fixed payments for life and distributes remainder to church and other charitable beneficiaries. Charitable income tax deductions, fixed annuity payments for life (portion tax-free), future gift to church. Charitable Remainder Annuity Trust Create a charitable trust that pays you a fixed income. Charitable income tax deduction, fixed income for life, future gift to church. Create a hedge against inflation over the long term. Charitable Remainder Unitrust Create a trust that pays you a percentage of the trust’s assets, valued annually Immediate income tax deduction, annual income for life that has potential to increase. Reduce gift and estate taxes on assets passing on to heirs Charitable Lead Trust Create a trust that pays a fixed or variable income to your church or ministry for a set period of time, then passes to heir Reduces size of taxable estate; keeps property in family, often with reduced gift taxes. The final chart covers some specialty types of gifts. The one most commonly used is the Charitable Gift Annuity which we will talk about in more detail on the next page. What is amazing to me is that there are so many ways that provide benefits to the donor as well as the church. It’s just figuring out what is best for you. The purpose of this publication is to provide general gift, estate and financial planning information. State laws govern wills, trusts and charitable gifts made in a contractual agreement. Advice from legal counsel should be sought when considering these types of gifts. Watch for tax revisions. Some types of gifts may not be available in all states. Check with your professional advisor.

What are the advantages? A Charitable Unitrust is a simple combination of two concepts – a charitable gift and a lifetime income. It is a very attractive option for older donors. As you can see, the payments can be very attractive and there are also tax advantages. This sample is a donor giving appreciated property of $100,000 avoiding capital gains and receiving income tax advantages. Over 21 years, the donor would receive approximately $97,000 of income based on a 5% unitrust. At the end of his life, the trust passes to his church without probate. If you are interested in a charitable unitrust or one of the other options listed on the previous charts, you may contact the Georgia United Methodist Foundation which offer these investment opportunities for our church. Have you ever heard of a charitable unitrust? What are the advantages? Make a gift to your church and receive increased income for the rest of your life Receive current income tax deduction Receive part of each payment tax free Avoid some capital gains if funded using an appreciated asset Avoid probate costs 1 or more lives Call toll free 877.220.5664 for more information or www.gumf.org

The Georgia United Methodist Foundation can help you . . . . . . The Georgia United Methodist Foundation works with church members to develop strategies for creating a legacy at their church. Our staff are trained to assist you in developing the most advantageous way to meet your philanthropic and personal goals. Working with both individuals and professional advisors, we can assist you with: Creating a personal legacy plan—integrating your core values with your financial, philanthropic and estate planning objectives Examining whether your legacy would be enhanced by creating additional secure income Creating a plan to minimize tax consequences for your legacy plan—and lessen the impact on your family and estate Selecting and timing the most appropriate vehicle for your legacy plan—to ensure your results are consistent with your goals Whatever your goals in supporting your church, the Georgia United Methodist Foundation can help you achieve your objectives in a manner that works best for you. We will help you discuss ways to provide for your loved ones and those ministries in your church which are most important to you. Call or email us today to set up a time to talk about the priorities that will help you build your Legacy at your church. It’s free and confidential. Georgia United Methodist Foundation, toll free 1.877.220.5664 Or visit our website at www.gumf.org Many donors will need the help of an attorney and financial advice in developing their plan. The GUMF can help in many ways. Here are a few ways that the Foundation can help. The staff has helped educate us on how to promote our endowment. But I think the most important service they offer is the free, confidential consultations to any Georgia Methodist who is considering making a gift to their church. They are very knowledgeable and can help individual members make an informed decision that is best for their particular circumstances. Their number is at the bottom of the page.

Thank you! Change this to photos of kids in your church. Use a photo of kids in your church and provide some contact information. Thank you for meeting with me/us and for your commitment to our church. If you have any questions or need additional information, you may contact us at these numbers. Is there anyway that I can help you today or answer any question that you may have? NARRATIVE TO GO WITH GIFT CONFIRMATION FORM Before we leave today, we wanted to quickly review the confirmation form that we have included in your packet. This forms allows you to share your commitment for the church. The first page basically lists the type of the endowment gift. The second part can be a little confusing – at least it was to me at first. As we talked about earlier, you can designate your gift. The first decision is whether you want to put your gift in the endowment so that the income will only be used OR would you like to leave it as an outright gift. Does one of these interest you more? The bottom of the first page lists the kind of gift and the amount. Part II gives us permission to share your name. When I filled this out, I was reluctant to give the church this permission because I didn’t want people to know, but then I realized that if folks knew that I gave, they might be motivated to give. So I checked Yes. What do you think? The next section just says that it is not legal or binding. In order to help folks remember the name of the funds that are available and whether they were endowed or not, we included this list at the bottom of the page. We have given you a lot to think about. How long would you like before I call you again to give you an opportunity to ask me the questions that you may have? Contact information: Visitor:___________________________ Phone:____________________ Email: ________________ Committee Chair:___________________ Phone:____________________ Email: _________________ Senior Pastor:______________________ Phone:____________________ Email: _________________ Georgia United Methodist Foundation: Toll free: 877.220.5664 www.gumf.org