The term “planned giving” refers to charitable gifts that require some planning before they are made. Planned gifts are popular because they can provide valuable tax benefits and/or income for life. Whether a donor uses cash or other assets, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and charity. Potential benefits of planned gifts:
- Increase current income for the donor or others
- Reduce the donor’s income tax
- Avoid capital gains tax
- Pass assets to family at a reduced tax cost
- Make significant donations to charity
With the assistance of a well-informed development officer and/or financial advisor, anyone can craft a planned gift to meet his or her charitable and financial goals. Planned gifts include bequests, trusts, and contracts between a donor and a charity.
Be part of our Heritage Club
Everyone who includes the Children’s Homes in their estate plans automatically becomes part of our Heritage Club, which is our way of honoring those who have remembered the Children’s Homes with a future gift. Please contact Averitt Ennis at Averitt.Ennis@FBCHomes.org or (863) 687-8811 if you have included the Children’s Homes in your estate plans so we can formally recognize you.
Following is the official information you will want to include on documents prepared by your attorney or financial advisor to designate bequests to the Florida Baptist Children’s Homes.
Corporate name: Florida Baptist Children’s Homes, Inc.
Address: 1015 Sikes Blvd., Lakeland, FL 33815
Federal Employer ID number: 59-0657326
Contact Name: Chief Financial Officer
Types of Planned Gifts
When a donor decides to leave assets to charity in his or her will, he or she is making a bequest. The donor’s estate will receive a charitable estate tax deduction at his or her death, when the gift is made to charity. Everyone should have a will.
Charitable Gift Annuity
A Charitable Gift Annuity is an agreement between an individual/couple and a qualified charitable organization. The individual or couple transfers assets to the charity and, in turn, receives fixed payments for the remainder of their lives, guaranteed by the full worth of the charity, usually at a greater return than current investments. For example, let’s say an individual age 70 buys a gift annuity from Florida Baptist Children’s Homes for $10,000. If the Gift Annuity Rate for a person of that age is 6.7% annually (for current rates used by Florida Baptist Children’s Homes, contact Averitt Ennis), he or she would get $670 per year for their lifetime. The rate is determined by the person’s age when the contract is made. Payments may be made monthly, quarterly, or annually. Income from a gift annuity can be deferred for a period of years. Deferred gift annuities are often set up by younger donors to supplement retirement income. Calculate the benefits of a Charitable Gift Annuity.
Charitable Remainder Trust
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, the charity receives whatever amount is left in the trust. Charitable remainder unitrusts provide some flexibility in the distribution of income, and thus can be helpful in retirement planning.Calculate the benefits of a Charitable Remainder Trust.
Charitable Lead Trust
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to charity during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts. Calculate the benefits of a Charitable Lead Trust.
Retained Life Estate
A donor may make a gift of his or her personal residence or farm to charity and retain the right to live there for the remainder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor’s death, the charity can use or sell the property.
All gifts to the Florida Baptist Children’s Homes are tax-deductible as allowed by law, and all are deeply appreciated!
- Certificates of Deposit (CDs)
- Real estate
- Personal Property
- In-Kind Goods or services
For questions please contact Averitt Ennis, Vice President of Development, at (863) 687-8811 or at Averitt.Ennis@FBCHomes.org.