T H E
B A P T I S T
F OU N DAT ION
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OK L A HOM A
GEN EROSIT Y S PR I NG
2014
Reighna Priest Former OHBC Resident Breaking the Mold
Generosity Magazine Spring 2014 A magazine for clients and stakeholders who support the Baptist Foundation of Oklahoma’s mission to promote charitable planned giving and provide financial management for the gifts that strengthen Southern Baptist ministries.
Production S Design | design layout Jayme Glover | editor & writer Christian Sangree | photographer Marcus Wehmuller | photographer Send questions/comments to: Editor, Generosity 3800 North May Avenue Oklahoma City, Oklahoma 73112 communications@bfok.org
Letter from the President Over the past year, the Foundation has worked under the new goal of distributing $25 million to frontline ministries by the year 2025. Each new year will bring new goals that need to be met in order to reach the ultimate goal of 25 × 25. This year, the objective was to distribute $15.2 million in 2013. This number meant that we, as an organization, were on track to meet our overall objective. We are proud to announce that we met and exceeded that number by 22.7 percent, making our 2013 charitable distributions $18.6
Administration
million. The largest part of that overarching number
Robert Kellogg | president & ceo Dan Allen | chief development officer, senior vice president, donor services Janna Charles | assistant to the president & corporate secretary David Depuy | vice president, director of investments Jayme Glover | interim director of marketing & communications Brad Johnson | vice president, controller Andrea Olsen | executive assistant to the president Michael Romero | vice president and trust counsel Shryln Treadwell | chief operation officer, senior vice president, beneficiary services Jerry Vaughan | senior vice president, church services Jim Wilsie | chief financial officer, senior vice president, support services
is our annual distribution made from our endowment
Area Managers
accounts at $11.9 million, as well as distributions from planned gifts, donor advised funds, and income from church funds management. Numbers and goals are important, because they give us something to benchmark against. But numbers don’t make success. Success is counted in the lives saved at Hope Pregnancy Center every day, in the stories of salvation for victims of a massive tornado, and in the securing of a future in ministry at Oklahoma Baptist University. These are our success stories and the reason behind our goal of 25 × 25. Thank you for helping make this first year a success.
Curt Gathright Kathy Lee Hatchett Paul Kersh Jerry Zumwalt
Robert Kellogg, President & CEO
Generosity is published in the fall and spring by The Baptist Foundation of Oklahoma, Oklahoma City, Oklahoma. Recipients include approximately 10,000 clients, stakeholders, and churches in Oklahoma. To request a copy or to update mailing information, please call 1.800.949.9988. “…through us your generosity will result in thanksgiving to God.” II Corinthians 9:11
Reighna Priest: Former OHBC Resident Breaking the Mold The mission of Oklahoma Baptist Homes for Children is to help children become capable, caring Christian adults by sharing Christ’s love and providing hope and homes for children. That mission is fully recognizable in the life of Reighna Priest.
Features 4
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Love of Children Reflected In Gift
Reclaiming a Life Free of Domestic Abuse
Becoming the Church Jesus Wants Us to Be
Promoting Biblical Studies
Departments 15
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Donor Services - Your Other Bucket List
Investments
by Dan Allen, Chief Development Officer, Senior Vice President, Donor Services
by David Depuy, Vice President, Director of Investments
17 Church Building Loans & Investment Funds ‑ Need to Build? Where to Start? by Jerry Vaughan, Senior Vice President, Church Services generosity
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Former OHBC Resident Breaking the Mold The mission of Oklahoma Baptist Homes for Children is to help children become capable, caring Christian adults by sharing Christ’s love and providing hope and homes for children. That mission is fully recognizable in the life of Reighna Priest. Reighna was an eighth grader when she first stepped foot in the Baptist Home for Girls in Madill, Okla. At just 13, she found a home there when her grandparents found it too difficult to raise her due to their age. Having been raised by her grandparents from infancy, she never knew what it was like to have parents. That is, until she met the Weises, her house parents. Reighna remembers her first impression of the Girls Home, “Everyone just seemed so smiley, so happy and loving and caring.” During her stay at the Girls Home, Reighna was able to participate in trips and activities that she may not have ever experienced elsewhere. She traveled across the United States, from Washington State to Colorado, even to Mississippi and Washington 2
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D.C. The purpose of these trips ranged from mission work to leadership training, but all trips were purpose-driven. Possibly one of the most interesting and life-shaping activities Reighna was able to participate in was the agriculture program at the home. This program is one of the staples of Oklahoma Baptist Homes for Children. Many of the residents are members of the program and compete on impressive scales throughout the state. Reighna, now 19, was very involved in “Ag,” as she affectionately calls it and still volunteers her time to help the girls in their training. The program taught Reighna responsibility as she recounts having to feed the animals everyday starting in the summer as
well as walk them, groom them and weigh them, making sure they stayed the ideal weight for competition in the spring. Reighna excelled in “Ag” receiving Second Reserve Grand at the County competition her very first year. However, her best showing had her one place away from making it into the City sale. Reighna loved the traveling and the “Ag” program at the Girls Home, but that was not the most important thing that happened to her while living there. “My relationship with God definitely did get stronger once I moved there,” says Reighna as she recounts journaling her first night in the home about how she knew this was God’s plan for her life. “Having godly
AN ENDOWMENT is created to support the continuing work of many varied ministries and institutions including universities, senior adult retirement facilities, churches, church camps, and children’s homes, to name only a few. The annual investment income of the funds helps with the operations of the institution or ministry while the principal remains intact. You may contribute to an existing endowment benefiting one of these ministries, or work with The Foundation to create a new endowment.
people around you is really awesome, and it really impacted my life.” As Reighna and her husband, Dexter, welcome their first baby into the world this summer, she plans to emulate the Weise’s parenting style, “I’ve always loved how my house parents treat their kids, they discipline in a loving way.” Reighna and Dexter will celebrate their first anniversary this June right before the birth of their child in July. Both are working and going to school. Reighna hopes to be able to pursue a career in the Agriculture Program at the Girls Home upon graduation so she can “give back to what has given so much to her,” as she says. Reighna knows her life wouldn’t be the same if it wasn’t for the Children’s Home or for the support given by donors to keep programs like “Ag” going. To those donors and potential donors, Reighna stresses “if the
Children’s Home didn’t exist then I wouldn’t have gotten people that I can call parents. I would never have gotten the opportunity to participate in the ‘Ag’ program. It taught me responsibility. You have to care for something, and you’re responsible for it every single day, and it sounds simple, but it’s a life lesson. When you are ready to have a child, it’s a similar principal in that you are responsible for a life.” The Children’s Home taught Reighna how to physically care for a child while her house parents taught her how to emotionally care for a child. Reighna is now a capable, caring, Christian adult who can adequately care for and show Christ love to her own child.
A DONOR ADVISED FUND (DAF) works well for someone who wants to make a charitable gift but who does not want to create a private foundation or select the charities that will receive the funds right now. With a DAF, you can select the charities and distribute funds over time. When you make contributions to the DAF, you receive a current income tax deduction for the full amount of the contribution to the DAF. Upon your advice and the Board’s approval, The Foundation will distribute the agreedupon amount to the public charities of your choice. A CHARITABLE BEQUEST is a bequest written in a will or testamentary trust that directs a gift to be made to a qualified exempt ministry when you pass away. One benefit of a bequest is that it enables you to further the good work of a Baptist ministry you support long after you are gone. It can also help you save estate taxes by providing your estate with a charitable deduction for the value of the gift. continued on page 17
To learn more about giving through the Foundation in order to change lives like Reighna’s, contact 1.800.949.9988.
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Love of Children Reflected in Gift Pat Simpson’s mother, Virgie Watson, enjoyed watching beautiful things grow. When Virgie moved from Oklahoma to California to live with her daughter after the Murrah Building bombing in 1995, she brought along her Oklahoma poppy seeds. “She spent a lot of time outside in the yard, walking around looking at the plants. Or so I thought,” Pat remembered. “Little did I know that she was planting poppy seeds all over the flower beds.” For the next 15 years the Simpsons had a variety of poppies bloom in their yard. But as Virgie’s health declined she stopped tending to the plants. “I hadn’t seen poppies for a couple of years until a few months after mother died. I came around the corner and at the front corner of the flower bed was a huge bunch of red poppies. The plant came up and bloomed without any attention. It was so large and strong and produced the most beautiful flowers that you could imagine. I think that it was mom saying goodbye and, ‘Enjoy my flowers,’” Pat said. Virgie also loved to be a part of ministries that helped children grow. About 26 years ago she funded a gift annuity through The Foundation with $10,000. During those years, she received approximately $800 a year, an estimated total of about $21,200. When she passed away in February 2013 (at 99 ½) the gift annuity paid out the remainder, per Virgie’s
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instructions, $8,068.76 to Oklahoma Baptist Homes for Children’s Boys Ranch Town endowment. “Mother always had a love for the kids there,” she said. Pat remembers when she was a young girl in GA’s (Girls in Action) that her mother would take the group to Oklahoma Baptist Homes for Children to play with the children. When Virgie died in February, Pat received a letter from OBHC letting her know that they had received money from the closed gift annuity. “I couldn’t imagine how that $10,000 could cover $800 per year all those years and still have money left over to go to Oklahoma Baptist Homes for Children.
Baptist Church, helping other women who had lost their husbands. “My mother had the reputation that if you wanted a job done, you give it to Virgie. If you want it done well, put her on the committee. If you don’t want it to get done, don’t let her get close to the committee,” Pat said. Beginning on her mother’s 98th birthday, the family started the tradition of releasing as many colorful balloons as her mother’s age; they repeated it on her 99th birthday, hoping to do it once again on her 100th. “She had a better birthday for her 100th than we could have planned for her,” Pat said.
“I understand that not all stories are the same, mother invested at a time when returns were high, but I say, God was the one who did this,” Pat said. Virgie and her husband Leroy Donald, (L.D.) Watson, Pat’s father, met at Exchange Avenue Baptist Church and began dating when they were teenagers. She had plans to work as a hair dresser to help earn money for school so that she could study to be a geologist. But those plans changed when she attended a revival at her church. “My dad leaned over one night and whispered into her ear, ‘Will you marry me?’ Mom didn’t know what to do; she had her life planned out. She got up and walked out of the church, but she felt a hand on her shoulder,” Pat said. “Mom believed it was God saying, ‘Go back. Marry him. Teach children about the Lord.’” She taught children about the Lord for almost 50 years, Pat said. The couple raised their family in Oklahoma City and both were involved in teaching youth in their church—L.D. was also a Boy Scout leader. Virgie worked as a Sunday school teacher, youth leader, and took many groups of young girls to Falls Creek throughout the years. Sadly, Pat’s father died in 1973 of a heart attack at age 59. Virgie became involved in ministry work at Knob Hill
Your Gift Can Make A Difference Benefits of a Charitable Gift Annuity Predictable Income for Life While Giving to Ministry • Receive a charitable income tax deduction the year you establish the gift annuity. • Receive an income for life. • Avoid part of capital gains taxes if gift is funded with appreciated securities.
Oklahoma Baptist Home for Girls Ag Program
• Worry-free investment management. • A gift to support Southern Baptist ministries of your choice at your death.
For more information about how your gift annuity can benefit ministry, visit www.bfok.org or call 1.800.949.9988.
The BapTisT FoundaTion oF oklahoma 3800 North May Avenue Oklahoma City, Oklahoma 73112 800.949.9988
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DAYSPRING HELPS VICTIMS OF SEX TRAFFICKING KNOW THEY ARE GOD’S CHILDREN DaySpring Villa is a certified shelter that helps adult victims of human sex trafficking, the first shelter of its kind in the state. To date, they have helped 57 women, several bringing with them into the shelter their children. “For most of the women who come to DaySpring from sex trafficking, shame is the greatest barrier to not only acknowledging their need for help, but accepting it,” said Executive Director Wilma Lively. Lively feels strongly that it’s important to drop judgments and pre-conceived ideas about how women get into sex trafficking. “We have to stop referring to the women as prostitutes when we see them on the streets or hear that they have been arrested, for the word prostitute denotes a choice,” she said. “None of the 57 women that we have helped chose this life.” Lively explained that the term that should be used is “prostituted.” “The prostituted women who come to DaySpring Villa believe that nobody cares about them and that they are disposable property, a reusable resource. We are committed to helping them know that they too are a child of God.
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Reclaiming a Life Free of Domestic Abuse by taprina milburn
When Yvette tells the story of where she has been and where she is today in her life, the 30-year-old can’t keep from smiling. “DaySpring Villa saved my life,” she said. Three years ago, she was in an abusive marriage, pregnant, and homeless. She called 211, the national crisis intervention and referral service line, and learned about DaySpring Villa, Oklahoma’s first faith-based, certified women’s and children’s domestic violence and sex trafficking shelter. DaySpring Villa originally opened in the 1980s as the Baptist Women’s Shelter. Because of gifts through the Foundation, individuals, and churches, it is able to offer a unique environment that emphasizes Christian spiritual guidance in combination with emergency shelter, food, medical services, and clothing. Staff also help women set practical goals in a variety of areas including job training and placement, parenting, as well as helping them to rebuild their confidence, self-esteem, and independence. “We help hurting women and their children find the hope they have in Christ and to be all that God wants them to be,” said Wilma Lively, executive director. When I heard about DaySpring, that was the answer for me, Yvette said.
Financial support from Foundation donors, individuals, businesses, and churches is so important to DaySpring Villa because it shows these women that they are worthy and they are loved, said Lively.
Yvette grew up without a father and watched along with her siblings the cycle of abuse her mother was in, seeing her beaten often by different boyfriends. Her mother eventually got help, but it had misshapen Yvette’s perceptions of what a relationship looks like.
Give to the ministry of DaySpring Villa by visiting www.bfok.org Donate Online.
“My little sister’s dad beat my mom every day. I saw my mom crawl into a corner because she was so afraid to move,” Yvette remembers. “When you grow up seeing that, you believe that’s just the way things are. You don’t always recognize how bad it is because you get used to it.”
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Yvette spent 11 months at DaySpring, which she prefers to call a home with many loving sisters and mothers rather than a shelter. When she arrived, she was four months pregnant with her son Nathanael and owned a bag of clothes and a blanket. The support she was immediately surrounded with and the time she had to build her confidence and faith in Christ, helped buoy her when her full-term pregnancy ended with her son being delivered stillborn.
Today, Yvette has her own house, works as a certified nursing assistant at a hospital, where she shares her story of hope with others. She will begin school in the fall to become an ultrasound technologist. She adds that because of her help through DaySpring Villa, she now knows what a healthy relationship looks like. Yvette is engaged to be married next December. “Dayspring gave me the ability to let go of the past and look to the future to the new woman I am today,” she said.
“If I had not been at DaySpring when I went through Nathanael’s death, I don’t know how I would have survived it,” she said.
DaySpring’s Sex Trafficking shelter is confidentially located with secure access for guests and their children. It offers 17 guest rooms that are cheerfully decorated and neatly furnished with beds, dressers, nightstands and infant furnishings. Guests and their children are provided with all basic necessities, including hygiene products, clothing and food. The facility is equipped with a large kitchen and dining room, TV room, library, snack center, child recreation room, outdoor play area, and donation rooms filled with toys, clothing and basic household items. To learn more about DaySpring Villa and how you can donate to this ministry through the Foundation, contact 1.800.949.9988, or to donate online, visit www.bfok.org. generosity
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The Colemans: Why We Chose an Estate Plan with the Foundation
Pastor Landon Coleman, First Baptist, Kingfisher, and his wife Brooke completed their estate plan through the Foundation. Below is a question and answer article that explains why they believe having a will is important to them and why they chose to work through the Foundation. The couple has three daughters.
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How did you learn about the Foundation?
What does the estate plan mean for your family?
Colemans: A church member (Greg Kannady) has a good working relationship with the Foundation, and has served on their board. Not being a native Oklahoman, I did not know about the Foundation or any of the services they provided. As a board member wanting churches and pastors to know about the Foundation, Greg connected me with Foundation staff. We actually scheduled a Sunday where President Robert Kellogg preached in our church, and led a forum during Sunday school where he talked about the Foundation’s services. So we chose the Foundation because of the recommendation of a trusted church member, and the denominational connection as Southern Baptists.
Colemans: The estate plan gives us peace of mind about our daughters in the event that something were to happen to Brooke and me. Our decisions and wishes have been documented, and they are ready to be legally executed.
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Share your thoughts on being able to give to a Baptist ministry through your estate plan? Colemans: At this point in our lives we certainly don’t have much of an estate to leave behind. However, the point is not a dollar amount, the point is stewardship. Brooke and I were blessed to come from families that taught us how to practice biblical stewardship, and we believe that
“Our resources are ours only in the sense that God has entrusted them to us, and in every way possible we want to be good stewards of those resources.”
The Foundation’s Auguie Henry Society was formed in 2006 to recognize families and individuals who have included a gift to Baptist ministry as a part of their estate plans. Currently, the Auguie Henry Society has 1546 members, who, as a group, have named approximately 911 charitable causes in their estate plans. AHS members have given in the form of a planned gift or designated as future testamentary gifts more than $152 million for ministry causes.
stewardship should continue when we are gone. Not only is this an issue that matters to us, but it is also an example we want to set for our children. Our resources are ours only in the sense that God has entrusted them to us, and in every way possible we want to be good stewards of those resources.
What do you hope the ministry you give to is able to do with the resources? Colemans: Brooke and I picked two ministries to give to from our estate. One is Southern Baptist Theological Seminary and the other is the International Mission Board. Southern Seminary was instrumental in preparing us for ministry, and we pray that they would continue to train ministers and missionaries for decades to come. The IMB has
*The Foundation reimburses a portion of a client’s legal fees if they leave a 10 percent gift in their estate plan, half of which must go to a Southern Baptist ministry and may include the Southern Baptist church they attend.
always been close to our hearts, partly because we both grew up in churches that gave significantly to Lottie Moon, and partly because so many of our friends have served through the IMB. In both of the gifts we hope to see the Great Commission fulfilled, both here and around the world.
What would you like other families to know about having a will for their families? Colemans: Especially for those with children, completing an estate plan that includes a guardianship for your children is something you need to do. The process of working with the Foundation and their recommended lawyers was totally painless and extremely simple. There was no inconvenience on our part, and it was something we should have done
Dr. Auguie Henry. The society recognizes families who have left a gift to a Southern Baptist ministry in their estate plans. There are 1,546 members who, as a group since 2006, have given approximately $152 million in future gifts to more than 900 ministry causes.
years ago. In addition to the practical benefits of having your estate plan in place, there is also the stewardship issue. And I would want families to see the importance of managing well the resources God has entrusted to them, even in death.
Was the legal fee reimbursement plan an important part of your decision?* Colemans: Absolutely! This was a huge blessing to our family, and a motivating factor in our decision to go through this process, and go through this process with the Foundation. All that is required is the estate gift to a Southern Baptist ministry. Since this is something we believed in already, it was really a win-win situation for our family.
To learn more about creating an estate plan through the Foundation, visit www. bfok.org and select “Begin Your Estate Plan Now” or call 1.800.949.9988, ext. 106.
The Auguie Henry Society was named after the Foundation’s first full-time executive treasurer,
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Becoming the Church Jesus Wants Us to Be When Pastor Mark Sinor talks of his church, one growing rapidly in the ever-increasing district of Deer Creek, located in West Edmond, this goal is at the top of North Pointe Baptist Church’s list. North Pointe has dreams and goals to help them become that church, but Pastor Sinor and his staff have it right when they, as he says, “don’t put the ministry cart before the spiritual horse.” “When your dreams become separate from God’s dreams, there is no success,” he said. So, North Pointe chooses God’s plan over their own, and it has proven successful as they have celebrated many exciting ventures in the first year of opening the doors to the first phase of the building project initiated in March 2012 through a loan with the Baptist Foundation of Oklahoma. When space became an issue, North Pointe teamed up with the Foundation to construct a building that would be used initially as a worship center but would eventually serve as a welcome center in the coming years. North Pointe was also able to build an entire wing of children’s ministry facilities that are much larger than in the previous building. The new worship center has the potential to hold 350450 people, a large increase from the old building. Since 10
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opening, North Pointe has held their largest fall festival, an open house for the community, to date. North Pointe was also one of very few churches chosen to host the showing of the Ragamuffin Gospel movie. With an increased emphasis on worship, North Pointe was able to invest in new lighting and sound equipment that has taken the experience to an entirely new level. In February, the church held its first ever NOW (Night of Worship) and plans to make it a recurring event. North Pointe Baptist Church is located in the heart of Deer Creek on 220th between MacArthur and Meridian directly west of Rose Union Elementary School. This location, though only one and half miles from their previous location, was God-ordained as Pastor Sinor explains North Pointe positioning itself as a community church in Deer Creek. Just one of the many ways they are attempting to do this is by hosting an annual Daddy-Daughter dance at the intermediate school that brings in 120 to 150 families. This year will mark the fourth annual dance.
ALL INTEREST PAID IS DISTRIBUTED TO KINGDOM CAUSES Interest paid on land or construction financing through The Baptist Foundation of Oklahoma is distributed to more than 300 Southern Baptist ministries and charitable causes every year. In a typical year, in excess of $3 million is earned in interest from church loan financing through the Foundation and helps various organizations across Oklahoma, the nation and around the world.
“We are constantly looking for ways to impact our community.” Another way North Pointe is impacting the community is through the mentoring of a leadership group of eighth grade boys. Pastor Sinor heads the group teaching the boys to be strong leaders today and in the future, impressing upon them the need to be a light and to stand for Christ on their school campus. He hopes to expand this group and even extend it to include other age ranges. As North Pointe listens to God’s direction on how to impact the community, the church has faith that God will open more doors to other ministry opportunities. Speaking about the future of his church, Pastor Sinor states, “I want to go and do and be whatever God wants us to be and nothing more.”
COMPETITIVE INTEREST RATES AND TERMS ON LAND AND CONSTRUCTION LOANS Interest paid and distributed to Kingdom causes is a significant benefit of your loan through the Foundation, but we also want Oklahoma churches to get a great interest rate and terms for their land and construction loans. In most cases, the interest rate will be lower than can be obtained through other lending sources. Check out the interest rate page and see for yourself. LOW CLOSING COST The only closing costs associated with the Baptist Foundation of Oklahoma’s church loan financing are: an Origination Fee, which helps offset some of the costs of the construction and land loan program, Mortgage Title Insurance and a Mortgage Filing Fee. No appraisals or surveys required and there are no prepayment penalties. FAST AND CONVENIENT CHURCH FINANCING All that is required to begin the church loan financing process for your church’s building project is for you to submit a Church Building Loan application. We give you two online options for obtaining an application. You may also call us at 800.949.9988, extension 108, and we will mail a complete package. generosity
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CHARITABLE REMAINDER UNITRUST You may be concerned about the high cost of capital gains tax upon the sale of your appreciated property. Or maybe you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need. BENEFITS OF A CHARITABLE REMAINDER UNITRUST GIFT • Income for life, lives, or term of years. • Avoid capital gains on the sale of your appreciated assets. • Charitable income tax deduction for remainder portion of your gift through the Foundation. • Future gift to ministry. CHARITABLE REMAINDER UNITRUST FOR INCOME A charitable remainder unitrust pays you income that reflects trust investments. There is the potential that your income could increase over time with growth in the trust. HOW TO SELECT THE RIGHT UNITRUST PAYOUT FOR YOU • There are several unitrust payout options to meet your needs: • The standard unitrust pays out a percentage of the trust assets each year. • Another payout option used commonly for real estate permits the trust to sell the property tax free and then begin paying you income after the property has been sold. For more information about this type of giving arrangement, call the Foundation at 1.800.949.9988.
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Bob and Gerald “Jo” Carner: Promoting Biblical Studies
“If it had not been for Oklahoma Baptist University and the faithful supporters who made it possible, I would not have had an education,” said Rev. Bob Carner, Mounds, Okla. After his service in the United States Army, Carner attended OBU on a scholarship, graduating with degrees in sociology and Bible. He studied under longtime religion professor Dr. Rowena Strickland. “Dr. Strickland taught from the Bible, not from textbooks,” he remembered fondly of his late professor. “She taught it as an integral part of our history. I’ve never found a substitute for knowing the Scriptures.” His gratitude for his time at OBU and admiration for his professor’s dedication led the Carners to establish a scholarship in Dr. Strickland’s honor. The couple also made a charitable gift to the Rowena Strickland Endowment Fund through a Charitable Remainder Unitrust (CRUT), conveying a piece of rental property and appreciated stock. The endowment supports the Rowena Strickland Professorship in Bible. The Carners will receive an income for life from their CRUT. “Our gift is from the heart,” Rev. Carner said. “I give to OBU because I want to honor Dr. Strickland and see the quality of ministerial education continue to progress positively and strongly.”
A charitable remainder unitrust pays you income that reflects trust investments. There is the potential that your income could increase over time with growth in the trust. The standard unitrust pays out a percentage of the trust assets each year. Another payout option used commonly for real estate permits the trust to sell the property tax free and then begin paying you income after the property has been sold.
Benefits of a Charitable Remainder Unitrust Gift Income for life, lives, or term of years capital gains on the sale of your appreciated assets • Charitable income tax deduction for remainder portion of your gift to ministry • Future legacy gift to ministry. •
• Avoid
The Rowena Strickland scholarship was first awarded in 1999, a total of 15 awarded since its genesis. The professorship was fully funded in November 1997, and the first Rowena Strickland Professorship in Bible was awarded in 1999. Those who have served include, Dr. Bobby Kelly, Dr. Justin Hardin, and Dr. Alan Bandy. Strickland, who died in 1997, was a distinguished service professor of biblical studies from 1953-80. She achieved the title of professor in 1962. In 1977, she was the fifth professor and the first woman to receive OBU’s Distinguished Service Professor title.
To learn more about a charitable remainder unitrust, contact Dan Allen, Chief Development Officer for The Baptist Foundation of Oklahoma, 1.888.480.6191 or email donorservices@bfok.org. To make an online gift to ministry, including your church, select “Donate Online.”
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Foundation News Baptist Foundation Announces Annual Distribution to Ministries The Baptist Foundation of Oklahoma announced that $11.9 million was recently made available to ministries across the nation and worldwide, including more than $10 million to Baptist ministries in Oklahoma. “We are grateful for our donors who want to support Baptist ministries with a biblical worldview that impact lives long-term,” said Robert K. Kellogg, President and CEO of The Baptist Foundation of Oklahoma. Since 1946, Foundation donors have supported the care of children, provided rental assistance and living expenses for senior adults, sent volunteers to help during local and national disasters, and provided scholarships that allow students to receive a Christian liberal arts education. The 2013 annual distribution, made on January 31, 2014, was given to the following Oklahoma Baptist ministries and institutions: $1.35 million to The Baptist General Convention of Oklahoma. • $340,956 to Baptist Village Communities. • $3.43 million to Oklahoma Baptist Homes for Children. • $4.39 million to Oklahoma Baptist University. • $797,351 to Southern Baptist churches and associations in Oklahoma. • $460,620 to Southern Baptist Convention. •
To learn more about how to leave gifts to ministry through The Baptist Foundation of Oklahoma, visit www.bfok.org or call 1.800.949.9988. 14
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Borrowing Against CBL Investments We’re pleased to announce a brand new way to borrow money from the Foundation. Historically, if a church needed to borrow money, even for small projects, the Foundation required a first mortgage on property owned by the church. Now, if your church has an investment in the Foundation’s Church Funds Management Program in the form of CBL Term Investments, those can be used as collateral for loans taken out with the Foundation. The benefits to the church are no need for a mortgage to be placed on the church’s property, no need for mortgage title insurance (and the resulting cost), and no closing costs. The best thing about pledging CBL Term Investments is the quick turnaround time from application to closing. If you would like more information about this new way to borrow money, contact Jerry Vaughan at jvaughan@bfok.org or call 1.800.949.9988.
Baptist Foundation Announces New Interim Communications Director Baptist Foundation Announces New Interim Communications Director The Baptist Foundation of Oklahoma announces the appointment of Jayme Glover as interim director of communications. Glover, who has served as assistant to churches for three years, will lead the organization’s marketing and communications efforts. In her duties as assistant to churches, she assisted the communications team in social media marketing as well as video and magazine production. Jayme is a 2010 graduate of Oklahoma Baptist University with a double major in marketing and finance. She will begin working on a Master’s Degree in Communications this fall. She attends North Pointe Baptist Church.
Your Other Bucket List by dan allen
I’m not talking about the bucket list where you mark off “sky diving” or attend a World Series game before you go home to be with the Lord. No, this one deals with those of you who have set up a revocable living trust (RLT). TRUST BUCKET CHECKLIST These are the type of accounts that should be in your trust: • checking
accounts • savings accounts • brokerage accounts • home • other real estate • mineral interest • automobiles, boats & motorcycles • life insurance (secondary beneficiary designation)
Your RLT is NOT self-funding. In other words, you have to retitle assets into the name of the RLT in order for that asset to avoid probate if you died. I often illustrate this when I speak to groups by having two buckets with me – one called “your stuff” and the other called “your revocable trust.” Check your bucket lists every few years to make sure that “your stuff” bucket is either empty or only contains assets that have a beneficiary designation feature. Life insurance and retirement plans are the most common type of asset. These type of accounts will avoid probate if the beneficiary designations are filled out correctly. Your spouse should be your primary beneficiary on both in most cases. You can list your RLT by name on the secondary designation so that the death benefit proceeds will be distributed according to your wishes in case both spouses passed away at the same time. Retirement plan assets typically just list the spouse as primary and children and/or charities as secondary beneficiaries. Sending these assets to your RLT can accelerate the amount of taxes owed when they are transferred. Your trust bucket should show that your RLT owns all your bank accounts, brokerage accounts and real estate. A lot of people who create RLTs get their assets properly transferred into the right buckets initially, but over time get accounts back into their joint or individual names. This usually is done inadvertently by opening a new bank account or buying some real estate in their name instead of their RLT. So while you’re out there marking off things on your bucket list, don’t forget to check your other bucket list on occasion to make sure your revocable living trust is properly funded. Otherwise your spouse or children run the risk of having to probate some of your assets before they can receive them. After all, that’s what you were trying to avoid by setting up an RLT in the first place. If we can help you with this or any other estate planning needs please contact us.
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Need to Build? Where to Start? by jerry vaughn
In recent months I have received a number of calls from churches in need of additional space, whether it’s worship and/or education space. Growth has caused this need and in most cases these calls have been seeking advice on what to do next.
Know what you want.
“We want to partner with churches to help them borrow wisely with an appropriate level of debt.”
Identifying the need is the first step in the building process. You have to know what you need in order to know what to build. Even knowing what to build can be confusing. I recently talked to a pastor who knew they needed a bigger sanctuary due to growth the church was experiencing, but his biggest concern was, “how big should we build it?” It can be broken out like this: A. List of building elements you want in the project. B. List of your functional needs. C. Put together a plan which includes ministry, finance, and facilities. Which brings us to the next step in the process, finding someone to help in the design of the project. An architect can be very helpful in the planning to help with the feasibility of facilities with respect to site conditions, existing facility coordination, general construction cost, project cost, and even life safety issues. In some cases, design/bid/build contracting firms have qualified people who can fulfill this part of the process. Whoever is hired at this stage will be able to meet with the church to get an understanding of the scope of the project and will be able to help in clarifying the actual needs.
Plan your building project. One of the benefits of the design process is that it brings into focus the cost of a project. Knowing what to build is important, but knowing its cost is crucial. This will determine important issues, such as fund raising and financing. This is also when the personality of a church emerges. Should the project be built debt free? If debt is acceptable, should upfront cash should be raised before construction begins? Or, should fund raising be combined with debt? These are important discussions and can determine the timeliness of the actual start of construction. You should 16
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build a team which consists of church representation, architect and engineering consultants, and the contractor. Planning before construction can help avoid problems during construction. This is the time to begin searching for financing. Once project costs are known and how much upfront cash is available, financing the remainder is a critical step. Seeking financing for a project can be a daunting task. At the Foundation, we understand that going into debt is a serious matter. We want to partner with churches to help them borrow wisely with an appropriate level of debt. The loan application process is easy to understand and is styled to avoid paperwork nightmare. Many churches have commented on the simplicity of getting a loan from the Foundation.
Build the facility. Be involved in managing the project budget, timelines, and expectations of the church. Rely on the design firm and contractor to keep you informed. Don’t leave it up to them to make all the decisions. The church is a critical part of keeping the project in line and in making key decisions. It’s important to note here regarding expectations. Generally, we all like to think everything will be perfect before, during, and after a project is completed. The truth is that in every construction project there will be difficulties to overcome and you will always wish you had done something differently. This is also when the church can “negotiate” with the design firm to possibly engineer some cost savings out of the project.
A CHARITABLE GIFT ANNUITY (CGA) allows you to make a gift to ministry while receiving tax benefits and regular, fixed payments for the rest of your life and the life of your spouse. Under the terms of a gift annuity agreement, The Foundation agrees to pay a fixed lifetime annuity payment to one or more people. Your charitable gift will benefit the ministries of your choice after the death(s) of the annuity payment recipients. In addition to the gift annuity payment, you also receive a current income tax deduction for part of the gift’s value. The rates are based on the age of the annuitant, so the payment for an older annuitant will be higher than the payment for a younger annuitant. A CHARITABLE REMAINDER TRUST (CRT) presents an opportunity for you to provide lifetime income for one or more recipients while leaving a sizable gift to your favorite ministry. You also receive an income tax deduction and may bypass capital gain taxes. At the termination of the trust, the remainder is used to benefit the Baptist ministry of your choice. CRTs may be established during life or at death through your will or revocable living trust. Payout percentages are negotiated with you and usually range between five and seven percent. A CHARITABLE LEAD TRUST is an arrangement that allows you to make a gift of cash or property through the Foundation to a Baptist ministry for a specific number of years. the trust pays income to your Baptist ministry of choice. At the end of the designated time, the assets left in the trust are then distributed to your family or other designated beneficiaries.
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NON-PROFIT ORGANIZATION U.S. POSTAGE
PAID
OKLA. CITY, OKLA.
3800 North May Ave. Oklahoma City, OK 73112
PERMIT NO. 1498
CAN LOAN INTEREST HAVE MINISTRY IMPACT? The Impact of a Foundation Church Building Loan In the last 10 years, more than $29 million in church building loan interest has been collected and distributed to Southern Baptist ministries. s
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inistrie BGCO M SBC and
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“We’re doing more than just paying our note off; we’re giving back to Baptist causes.” - Pastor Larry Calvert First Baptist Church, Oilton
Jerry Vaughan, Senior Vice President, Church Services • 1.800.949.9988, ext. 108 • jvaughan@bfok.org