Author Archives: jmiller

Special tax-free IRA gifts for 2016 and Future Years

For those aged 70½ or older, it is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts.

On December 18, 2015, the President signed into law legislation that extends the charitable IRA rollover for 2015 and makes this provision permanent for future years. A total of up to $100,000 can be transferred directly from traditional or Roth IRAs to one or more qualified charities such as the Tennessee Baptist Foundation free from federal income tax each year. There may also be state income tax savings. Amounts given in this way count toward required IRA minimum withdrawal amounts for the year of the gift.

To make such gifts, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to one or more qualified charities. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA.

Check with us at 1-800-552-4644 or contact your IRA administrator or your tax advisor for more information.

Ready to get started?

You can reach us via phone at (615) 371-2029 or fill out this form.

Please note that the advice offered in this article is not intended to be construed as tax, legal or accounting advice. This material has been prepared for general informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice for the reader. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

What to do with appreciated propery

by Christopher L. Kelly, Esq.

Do you have some appreciated assets just lying around that you don’t know what to do with? Maybe I can help. I encounter many people who are holding onto valuable securities or real estate who are not really benefiting from the asset but are not willing to sell it because of the tax consequences of selling it. However, if that person has held the asset for more than a year and has charitable inclinations, he or she can donate this asset or property to his or her church, association, or other Baptist cause and incur no tax liability. While an individual will have to pay capital gains and the Medicare surtax (which would be cumulatively 23.8% this year) on the sale of this type of property, the entities I listed above do not have to pay it. Thus, you can actually get more funds into Kingdom work than you could yourself if you sold the property and donated the net proceeds after paying your taxes. Depending on your unique tax situation, you may be able to deduct a portion, if not all, of the value of the gift on your personal income tax return. It truly is a win-win for people who fit this scenario.

If you are a leader in the finance ministry of your church, and you are not sure how to accommodate these kinds of donations, please give the Foundation a call. We can help you directly with handling gifts of publicly-traded securities and can also advise you on how to manage other types of gifts, such as real property. And with year-end fast approaching, due to the time it may take to completely finalize a gift, now is the time to get started. This is a great way to support Kingdom work today! Please just give us a call if you have any questions.

Ready to get started?

You can reach us via phone at (615) 371-2029 or fill out this form.

Please note that the advice offered in this article is not intended to be construed as tax, legal or accounting advice. This material has been prepared for general informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice for the reader. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

In this edition of Touching Tomorrow, we congratulate the 215 recipients of the Tennessee Baptist Foundation Grants and Scholarships for the 2015-16 academic year. All of these students have met the requirements for our scholarship with a proven record of academic success and ministry involvement. We are delighted to share these names with you, not only to honor them, but so that you can pray for them as they continue their education. These students represent a cross section of Tennessee Baptist life. They come from different parts of the state, representing Tennessee Baptist churches of all sizes with educational emphasis in a variety of degree programs, which include, preparing for Full-time Christian ministry positions, teaching, doctors and nurses, or working in business. Because of this cross section, these students are poised to make a significant Kingdom Impact in the marketplace. That is what our scholarship program is all about – impacting students so they can impact the world! Since 1987, the Tennessee Baptist Foundation has awarded 6,976 scholarships totaling $4.7 million dollars. How is this made possible? By the generous giving of Tennessee Baptists who believed in students and left money from their estates in trust to the Foundation for our scholarship program. We want to invite you to be one of those folks who want to help students make a Kingdom impact. If you have this desire, please contact us so that we can help you design an estate plan that includes scholarships for Tennessee Baptist students. We have the wonderful opportunity today to impact the world for years to come. Don’t procrastinate! Consider a Christian Estate plan that includes helping students be all that God is calling them to be!

Ready to get started?

You can reach us via phone at (615) 371-2029 or fill out this form.

Please note that the advice offered in this article is not intended to be construed as tax, legal or accounting advice. This material has been prepared for general informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice for the reader. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Moreover it is required in stewards, that a man be found faithful. 1 Corinthians 4:2 (KJV) Over the past few years,  I have received many calls from churches asking if there is any way to earn more interest on the money they have in their bank in savings accounts or endowment accounts.  Most of these churches  are saving money for building programs, mission endeavors, scholarships for students, or “rainy day” funds.  Interest rates at financial institutions have been very modest for several years and will probably remain low for the foreseeable future.  Churches are finding the amount they earn on these funds is not able to adequately grow the fund so that ministry can continue to  happen. So what can churches do? Is there another avenue to grow funds at a greater rate? One of the wonderful services that the Foundation offers is the management of funds for churches, associations and institutions of the Tennessee Baptist Convention.  Many churches and associations have taken advantage of this service. The Foundation currently manages funds for 134 churches/associations totaling over $22 million dollars. The types of funds that are under fund management are building funds, reserve funds, and mission funds. These are funds that churches typically put in a certificate of deposit (CDs) or money market accounts at a bank and are not part of the day to day operations of the church.  These are funds that could be needed but are set aside to grow additional income. The Foundation has been able to pool these types of funds and offer a greater return than financial institutions. While these funds are not FDIC insured, the Foundation maintains a large reserve fund to underwrite our pool of managed funds  for the rare instance when one of the underlying securities might fail. These funds are invested in investment grade fixed income securities such as corporate bonds and corporate preferred stock. The Foundation charges a modest fee of .0025 (.25 of 1%) annually for this service. This is lower than most financial institutions charge for similar services. Additionally, the fees collected go to help support the Foundation’s ongoing ministry to Tennessee Baptist churches, associations and institutions. Since 2011, the net return on this pool of funds has averaged between 4 – 5%. And setting up a fund management agreement is easy! Once you decide that you would like the Foundation to manage a fund,  all you have to do is complete a fund management agreement  and have it signed by the designated officers of the church or association. Then, send in the completed agreement and a check for the funds that are to be managed. Once the Foundation receives your money, the fund is set up. At any time, you can send additional money to be added to this fund. You can also make withdrawals by completing a Request for Distribution form and sending it to the Foundation.  Though by the terms of the fund management agreement, you must give a thirty (30) day notice for a withdrawal, we are usually able to have your requested funds to you within a few business days. So start getting more from your money to be used in ministry and let the Foundation manage funds for your organization today!  You can obtain more information on Fund Management along with a sample  of our Fund Management Agreement and Request for Distribution Form  by clicking on “Fund Management” on our website  www.tbfoundation.org.  If you have questions or want more information, just call us at 800-552-4644. We welcome the opportunity to come and meet with your church to discuss this opportunity and are ready to partner with you in ministry as we strive to be “faithful stewards.”

Ready to get started?

You can reach us via phone at (615) 371-2029 or fill out this form.

Please note that the advice offered in this article is not intended to be construed as tax, legal or accounting advice. This material has been prepared for general informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice for the reader. You should consult your own tax, legal and accounting advisors before engaging in any transaction.