Legacy Giving Newsletter Summer 2017
Taking Control of Giving For Mike Hoover, President of PetroMax, an oil and gas exploration and development company in Garland, Texas, partnering with the Assemblies of God Foundation has provided significant benefits, both financially and spiritually.
“God’s found ways to take our humble gifts and…use those funds to grow His kingdom,” Hoover said. PetroMax has used a number of AG Financial products and have greatly enjoyed the benefits of Donor Advised Funds. Donor Advised Funds (DAFs) serve “an amazing purpose in allowing us to have some control and manage our tithing,” Hoover said. Representatives from AG Foundation provided education and assistance through every step of the process. “They explained to us how the DAF works, and we ran it by our accounting and legal departments, everyone signed off on it pretty quickly,” according to Hoover.
Reaching your goals
What will be your legacy? Planned giving helps you make wise stewardship and financial decisions to manage your wealth. Through the marriage of proper financial and stewardship planning, it allows you to reach your goals for yourself, family, and ministry. Let AG Foundation help you find new ways to use what God has provided to you. See inside for more information.
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“The DAF has allowed us to make the investment, secure a tax write-off for that year’s benefit, and be able to lengthen those gifts out over the next year or the following years, as we find particular projects and ministries we want to support,” Hoover said. “The process is easy,” he added. “We send a request to AG Foundation for a 501c(3) that we want to support and make a donation to. A simple onepage, easy form, and they handle the executing of it. At the end of the year, we receive a statement from the Foundation, accounting for all our contributions during that year.”
Through Donor Advised Funds, AG Foundation has enabled Hoover and PetroMax to manage their charitable giving by combining smart planning with support for ministry. Whether for a company or an individual, DAFs offer a way to direct gifts to ministry while also enjoying tax benefits and control over giving.
"The DAF has allowed us to...lengthen those gifts out over the next year or the following years, as we find projects and ministries we want to support."
You can view Mike Hoover’s story by visiting www.agfinancial.org/hoover.
“When we met the guys at AG Financial a few years ago, there was an immediate spiritual connection,” Hoover said. “The result was a relationship with a financial partner who shares our values—and the support of ministry. The highest priority is finding people of integrity. [Their] integrity is off the charts.”
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Legacy Giving
Donor Advised Funds
Direct Your Giving and Enjoy Tax Benefits If you would like to manage your future charitable gifts, including donations made after your death, a Donor Advised Fund may be the right option for you. A Donor Advised Fund (DAF) has the unique benefit of allowing the donor to advise the amount and timing of future charitable donations, while enjoying tax benefits now.
Through a DAF, you can recommend when and how much money will go to the charity of your choice. When funds or assets are placed into the DAF, the donor receives an immediate tax deduction, even if funds will not be granted to a charity until much later. Meanwhile, the assets inside the DAF grow tax-free. As an additional benefit, if appreciated assets are contributed to the Donor Advised Fund, the donor pays no capital gains tax when the DAF liquidates the assets. A Donor Advised Fund is a more cost-effective alternative to creating a private foundation for donations, as a foundation often uses two to four percent of its assets each year just to maintain operations. Using a DAF enables you to participate in charitable giving without the necessity of starting a foundation. In addition, DAF can be used to make anonymous charitable donations, as the organization sponsoring the DAF does not have to disclose any details about the source of the funds. Charitable grants from a DAF may also be made in your name, if you so choose. In your role as advisor, you are able to make recommendations on how assets are distributed to ministry. You may also choose different recipients each year, as well as give instructions for additional giving after your death, continuing your charitable legacy. When a DAF grants donations, the funds must go to a public charity that is in good standing with the IRS. Because of this rule, gifts from a DAF cannot be made to individuals. Cash is one way to contribute to a DAF, but gifts can also include real estate, securities, art, antiques or other marketable personal property, business interests, and other assets. The minimum requirement is $10,000 for cash and securities or $100,000 for real estate. For more information about Donor Advised Funds, call 866.561.8860 or email plannedgiving@agfinancial.org.
Scenario: A Simpler Giving Method
Donor Advised Fund Example: Jack and his wife, Sharon, love to support many different ministries. But writing so many checks and keeping track of giving receipts is time-consuming. Their planned giving consultant shared how they could simplify their giving by channeling it through a Donor Advised Fund. What’s more, because the DAF makes it easy to give non-cash assets, they have actually increased their giving. Donor transfers asset to Donor Advised Fund. Donor may receive an upfront tax deduction.
Donors and other advisors can recommend distributions made to ministry.
Distributions made to ministry continue beyond the lifetime of the donor.
To receive confidential, objective information, please call your planned giving consultant, or visit agfinancial.org for more information. This does not constitute legal or tax advice. Please consult with your own advisor regarding your personal situation.
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Summer 2015
Blended Gifts
A Giving Plan for Today and Tomorrow If you can’t find a gift option to meet your specific needs, a blended gift may be the solution for you. Blended gifts allow you to combine giving options, enabling your gift to go farther than just a donation of property or cash.
Potential Benefits of Tax Reform In the United States there is general agreement that the current tax system is too complex and outdated. Members of the House and Senate from both parties agree that America needs a new tax system.
With blended gifts, you can see the impact of your giving today while continuing to support your chosen ministries in the future. Blended gifts are usually a combination of current and deferred giving options. Taking advantage of more than one giving option offers numerous benefits, including greater tax savings, higher-impact giving, and the ability to provide income for you and your family. You can add a planned gift to your annual cash or property donations to increase the impact of your giving and take advantage of additional tax savings. Similarly, if you have already created a planned gift or included a bequest in your will, you could see the
results of your giving today by making outright gifts of cash or property. Giving real estate, stock, or other appreciated investments would allow you to avoid capital gains taxes while supporting the ministries closest to your heart. Blended gifts make use of a variety of giving strategies by combining the benefits of current and deferred gifts. These unique gifts can be an excellent way to achieve your financial, tax, and giving goals. If you’re interested in blended gifts or other planned giving strategies, contact one of our consultants today at 866.561.8860
The last major tax reform was in 1986. A Republican President and a Democratic Chairman of the House Ways and Means Committee were able to build bipartisan support for comprehensive tax reform. They lowered the tax rates and also reduced various deductions and credits. On June 7, Douglas Holtz-Eakin, President of the American Action Forum, testified before the House Budget Committee. He reviewed the prior tax reform three decades ago and noted, “If history is any guide, a 1986 style reform offers faster economic growth. This is borne out by retrospective analysis of TRA that found that the 1986 tax reform produced about one percentage point higher growth over a long period.” Because of this history of significant economic growth during the two decades following passage of the 1986 tax act, many economists and commentators believe that it is time for another major overhaul of the tax system. While the 2017 economy differs from 1986, there still could be major economic benefits. Holt-Eakin notes, “Highly respected economists David Altig, Allen Auerbach, Lawrence Kotlikoff, Kent A. Smetters and Jan Walliser simulated multiple tax reforms and found GDP could increase by as much as 9.4% from tax reform.”
This newsletter is for you We would love to have your input and questions in order to address the topics that interest you most. In addition to our planned giving consultants, we have professionals in a variety of fields to address your planned giving questions. Please contact us with your questions at 866.561.8860 or legacygiving@agfinancial.org.
These economists simulated a much simpler tax system than the current Internal Revenue Code. They eliminated all deductions and credits and assumed a flat tax. The economic increase was approximately 4.4% over a decade. This increase in the economy also included creation of a substantial number of new jobs. The House, Senate and White House continue to develop a comprehensive tax reform plan. Speaking to the media on June 2, National Economic Council Director Gary Cohn stated that the White House plan was in process. He noted, “We will have a very detailed, draft tax plan to deliver to Congress” by the end of the summer recess. Editor’s Note Comprehensive tax reform is quite difficult. Some deductions and credits will be reduced. Even with an effort to keep the bill revenue-neutral, some taxpayers will pay less and others will pay more. However, with these known potential improvements in the economy, there is a bipartisan recognition that tax reform would be helpful for the nation. It could increase economic growth and employment over the next decade. Copyright © 2017 Crescendo Interactive, Inc. Used by permission.
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3900 S. Overland Ave. Springfield, Missouri 65807 866.561.8860 agfinancial.org
Legacy Giving Newsletter A heart for giving. A mind for smart planning. Yes, you can do it all. Whether you're approaching retirement or already have a giving plan in place, it's crucial to stay informed about changes in tax and estate laws. Plus, new options are continually arising. This newsletter delivers helpful information and solutions for your giving and retirement plans. Contact our team of professionals today at 866.561.8860 to get started.
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To view this and previous issues of Legacy Giving online, visit agfinancial.org/legacygiving
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