Ways to Give
OUTRIGHT GIFTS. These are the simplest gifts to make. The gift must be complete and irrevocable.
Securities or Real Estate. This is an effective gift option, particularly if the securities, mutual funds, or real estate are highly appreciated in value. You can claim an income tax deduction for their current value and you are not taxed on the gain. The tax deduction on these gifts is usually limited to 30% of your adjusted gross income, although any unused amount can be carried forward for five years. According to IRS rules, a qualified appraisal will be required.
Farm Commodities. The gifting of grain or livestock is a good option for some. It is required that MB Foundation be notified in advance of the gift and then authorize you to serve as our agent in selling the product. The benefit to the donor is not in a gift deduction but rather in a tax reduction in reportable taxable income.
REVOCABLE GIFTS. The plan for these gifts may be set in place now but you are able to change your mind if your circumstances or attitudes change.
Giving Through a Will or Living Trust. This is one of the simplest ways to make a significant charitable gift. Your bequest may provide for a specific dollar amount in cash, specific items of property, or a percentage of the estate.
Some have chosen to leave 10% of their estate to the cause of Christ to continue their lifetime giving practice. Others choose to include the Lord’s work as another “child” in the distribution of their estate. MB Foundation can be designated to receive the gift pursuant to a Donor Advised Memorandum on file with us.
MB Foundation offers our Biblical Estate Design service to help you prepare your will or living trust at no charge.
Life Insurance. There are many ways to give with life insurance. You can name charity as beneficiary or co-beneficiary. You can give a policy you already own and perhaps no longer need due to a change in circumstances by changing the name of the owner and beneficiary. You can purchase a new policy for the benefit of MB Foundation and take a tax deduction for the amount of the premiums…and there are more ways.
Retirement Funds. MB Foundation may be designated as the final beneficiary of some or all of your retirement funds. Funds may be designated from a company pension plan, an Individual Retirement Account (IRA) or other private fund. Designating retirement funds to charity is one of the most effective ways to make a charitable gift at death.
Pay on Death Arrangements. A convenient gift to consider is the gift of a savings account, certificate of deposit, or other investments. The account can name MB Foundation as beneficiary in a “pay on death” account. Funds in the account would immediately be available to support charities at the time of your death, without delays or unnecessary expense.
IRREVOCABLE GIFTS. These gift arrangements cannot be changed and many do not mature (benefit the charity) until sometime in the future. Most often the charity benefits at the death of the donor.
- gift to charity upon death of all income beneficiaries;
- An income for life for you and your loved one (if a two-life annuity);
- Significant tax benefits.
The gift process is simple if assisted by knowledgeable professionals like our Planned Giving Advisors.
Deferred Gift Annuity. The gift annuity offers a higher rate of return when payments begin and a higher gift deduction. Income, however, is deferred. It is a desirable plan for those in their earning years who can benefit from a tax deduction and wish to arrange for a fixed-payment retirement benefit.
Life Estate Agreement. The life estate agreement is a plan for giving your personal residence or farm but retaining lifetime use of the property for yourself and your spouse. The process is simple with benefits that include:
- An income tax deduction allowable in the year of the gift transfer;
- Avoiding probate of the property;
- The property is removed from the taxable estate.
Charitable Remainder Unitrust. A charitable remainder unitrust provides income to you and/or someone you love based on the value of the property given. Charitable organizations of your choice will ultimately benefit from this arrangement when they receive the remainder in the trust.
Unitrusts are usually most advantageous for gifts of sizable amounts involving property or securities which have significantly appreciated in value. There are considerable tax advantages that can include:
- Capital gains taxes are bypassed;
- An income tax deduction;
- Possible estate tax benefits.
Charitable Lead Trust. You may create a trust to provide income for ministry for a period of years while ensuring that the gift will ultimately be returned to you or a love one you designate. The lead trust can be an effective way to reduce or eliminate taxes that would otherwise be due on assets left to children or grandchildren.
Tools for Charitable Giving
- Donor Advised Fund. Outright gifts may be gifted and placed into a Donor Advised Fund. This enables you to make an end-of-the-tax-year gift but defer your gift recipient decision until a later date. You may make a larger than usual gift and have us disburse it to multiple charities, or you may build up a fund for special projects. Funds in this account are held until you instruct us to distribute them to your favorite charities.
- Donor Advised Memorandum. Any future gift (revocable or irrevocable) may be designated to MB Foundation. This might be documented in an estate plan, beneficiary designation or life-income arrangement. A letter of instruction (Donor Advised Memorandum) can then be used to designate the gift to benefit other 501(c)(3) qualified organization(s) of your choice. The Donor Advised Memorandum remains on file with MB Foundation until the gift is realized and then MB Foundation will take action based on the instructions included therein. Donor Advised Memorandums may be edited at any time.
- Endowment. You may choose to fund an endowment, now or at your death, which benefits one or more charitable organizations. An endowment may be established at MB Foundation as a living legacy of your values. Funds will be stewarded and distributed as the donor has instructed.
More information such as donor stories and gift calculators are available at our Planned Giving Resources page.
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