Thank you for visiting World in Need International's Planned giving web pages. It is my prayer that these pages will help you make biblically sound financial decisions as you paln for the future.
I am told that 70 percent of Americans do not have a current will. Without a will or trust set up in advance, what you worked hard to provide, as well as the guardianship of any minor children, would be determined by a court instead of by you. But with proper planning, your stewardship of the things God has entrusted to you can extend beyond your lifetime.
These web pages provide some easy-to-understand estate planning information to help you protect your family and be a wise steward of what God has entrusted to you. Depending on the arrangements you choose, it may also:
Reduce your income taxes
Avert capital gain tax
Increase your current income
Provide payments for life, and
Achieve no-cost, worry-free asset management
If you request assistance, you will be directed to our ministry partners at Orlando Christian Foundation, a nationally-known, Christian estate planning firm dedicated to helping you make the best decisions for you and your family.
I encourage you to discover how World In Need International can help you feel confident about being a wise steward. What a joy it will be knowing that you have prepared well to leave a legacy for your family and make an eternal impact for Christ!
Yours for the unreached,
Marty Benton, Executive Director
An estate is the collective assets, large or small, a person owns when he or she dies. A person's estate is distributed to his or her heirs according to the dictates of a will or trust. If there is no will or trust, then the estate passes according to the laws of the state.
If the estate is distributed by a will or by the laws of the state, it requires a court process called probate. There are several reasons to avoid probate. Probate is a lengthy process which delays the fulfillment of your wishes. It is a matter of public record and the process of estate administration can sometimes result in controversies and litigation that may incur additional expense.
A well-designed estate plan allows you to decide the outcome. It can preserve more of your assets and allow you to pass them to the people and causes you care about most.
Through your estate plan, you can play an instrumental part in ensuring that the Gospel will continue to be proclaimed around the world well into the future. Depending on the arrangements you choose, you may also:
- Reduce your income taxes
- Avert capital gains tax
- Increase your current income
- Receive payments for life
- Achieve no-cost, worry-free asset management
Estate planning can also reduce costly and lengthy legal proceedings for the division and distribution of assets, but most important, it will ensure that your assets are allocated according to your desires. A proper estate plan should accomplish the following:
- Express God's plan for stewardship
- Transfer the assets God has entrusted you to World In Need International or other charities of your choice
- Transfer your estate in a tax-efficient manner with the least possible amount of heartache, cost or delay
Glossary
Definitions of terms used in this website
Annuitant - An individual or entity entitled to receive annual payments through a charitable gift annuity arrangement.
Annuity - A payment based on an arrangement in which one receives a fixed amount of income for a lifetime or a fixed period of time. (See Charitable Gift Annuity.)
Bequest - A sum of money or property available to the designated recipient upon the donor's death.
Beneficiary - An individual or entity named to receive a gift. Several financial and legal vehicles have beneficiaries, including trusts, retirement plans, annuities and trust savings accounts. World In Need International may be named as your beneficiary, which can facilitate your giving after your death.
Bypass Trust - A trust that allows an individual to bypass estate tax on funds or property designated for heirs up to the limit established by the federal government ($1.5 million in 2004).
C Corporation - A corporation that is taxable on its income, even though some of that income is distributed (and taxed a second time) to the shareholders. World In Need International accepts gifts of stock from this type of corporation.
Capital Gains Tax - The tax due as a result of selling an asset that has appreciated in value, creating a capital gain. Short-term capital gains are those that result from the sale of an asset held for less than one year. Long-term capital gains are gains that have resulted from the sale of an asset held for more than one year. When donating assets, look first to long-term capital gains assets-they're deductible at their full fair market value.
Charity or Charitable Organization - An organization that operates exclusively for the benefit of the community by supporting causes such as religion, education, assistance to the government, promotion of health, relief of poverty or distress, or other charitable purposes. Generally exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and eligible to receive tax-deductible charitable gifts. Gospel for Asia is a charitable organization.
Charitable Gift Annuity (CGA) - An annuity set up by a donor that pays out a certain amount to the donor over a lifetime with the remainder going to charity upon the donor's death. These can be set up to be immediate, meaning the payments start right away, or deferred, whereby the annuity is set up ahead of time and the payments start later (usually when the donor reaches a certain age).
Charitable Lead Trust (CLT) - A trust that provides for the payment of an amount annually, or at more frequent intervals, to a designated charity. The amount must equal at least five percent of the initial fair market value of the trust. At the death of the trust creator, or at the end of the designated term of years, the remaining trust principal is distributed to a designated beneficiary or beneficiaries.
Charitable Lead Annuity Trust (CLAT) - A charitable lead trust that provides a series of guaranteed fixed payments each year of the trust period. The payment amount does not change over that period.
Charitable Lead UniTrust (CLUT) - A charitable lead trust that provides a series of payments that are revalued each year. These payments equal a fixed percentage of the fair market value of the trust property as revalued annually.
Charitable Remainder Trust (CRT) - A trust that pays current income to one or more non-charitable beneficiaries and later pays the remainder to charity. Special IRS rules apply to these trusts.
Charitable Remainder Annuity Trust (CRAT) - A charitable remainder trust that pays a fixed amount annually to a non-charitable beneficiary, with the remainder going to charity. The donor cannot make additional contributions to this type of trust.
Charitable Remainder UniTrust (CRUT) - A charitable remainder trust that provides a payment that is revalued each year (based on the payout percentage multiplied by the value of the trust). The donor may make additional contributions to the trust.
Community Foundation - A tax-exempt, nonprofit, publicly supported institution whose funds are established by many separate donors for the long-term benefit of nonprofit organizations within a defined area. Typically, a community foundation serves an area no larger than a state. SCCF and NCF are Christian Community Foundations.
Donor Advised Fund (which SCCF calls a Giving Fund) - A vehicle by which individuals or organizations make an irrevocable, tax-deductible contribution to an organization, then recommend to that organization how the gift should be distributed to charities. The gift from the donor is invested, creating an opportunity for the gift to grow.
Endowment - The principle amount of a gift or bequest accepted by an organization or foundation. The principle is intended to be kept intact and invested to create a source of income for an organization or foundation. As a donor, you may recommend that the principle remain intact forever, for a defined period of time or until sufficient assets have accumulated to achieve a designated purpose.
Form 990/Form 990 - PF-IRS forms filed annually by public charities and private foundations, respectively. (The letters PF stand for 'private foundation'). The IRS uses these forms to assess compliance with the Internal Revenue Code. Both forms list organization assets, receipts, expenditures and compensation of officers. Both include a list of grants made during the year, which is available to the public. Private foundations are required to disclose their donors and the amounts they contribute each year. Public foundations such as SCCF do not disclose this information.
Form 8283 - The IRS form for non-cash charitable contributions, filed by the taxpayer under certain circumstances. SCCF provides this form for those required to attach it to their tax returns.
Grant - An award of funds to an organization for charitable activities.
IRD Tax - Income in respect of decedent tax. The funds from retirement accounts [traditional IRAs, (not Roth IRAs), 401(k)s and 403(b)s] would be taxed as ordinary income before distribution to your beneficiaries, with a deduction given for any estate taxes paid, should death occur prior to the withdrawal of these accounts.
Irrevocable Contribution - A gift that is nonrefundable. Contributions to SCCF are irrevocable, meaning that the gift and all related future earnings are no longer the possession of the donor. Your gift becomes the property of SCCF, and you cannot impose any restrictions or conditions that prevent SCCF from furthering its charitable mission. This is done to ensure your full tax deduction at the time your gift is made.
Net Proceeds - The amount received from the sale of assets or securities after deducting all costs incurred in the transaction.
Non-exempt Organizations - Organizations that are not exempt from paying taxes.
Private Foundation - A non-governmental, nonprofit organization, usually funded by a single source (such as an individual, family or corporation), with a program managed by its own trustees or directors. A private foundation is established to maintain or aid social, educational, religious or other charitable activities, primarily through making grants. Private foundations are exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. However, private foundations are subject to federal excise taxes on their net investment income, as well as self-dealing rules and penalties, lower limitations on income tax deductions and other burdens not found through use of SCCF.
Public Charity - A nonprofit organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that receives its financial support from the public. Religious, most educational and many medical institutions are public charities. Other organizations exempt under Section 501(c)(3) must pass a public support test to be considered public charities, or they must be formed to support an organization that is a public charity. WIN and SCCF are public charities.
S Corporation - A corporation whose income is not taxable. Income from S corporations is taxed to their shareholders, similar to partnerships. Corporations and their shareholders make the decision whether to be S corporations or C corporations, depending on which they believe will have the best tax advantages. World In Need’s Harvest Foundation accepts gifts of stock from both of these types of corporations.
Section 501(c)(3) - Section of the Internal Revenue Code that designates organizations as charitable and tax-exempt. WIN and SCCF are tax-exempt under Section 501(c)(3) and are classified as public charities under Section 509(a)(1).
Section 509(a)(1), (2), and (3) - Sections of the Internal Revenue Code that define public charities (as opposed to private foundations). A 501(c)(3) organization must have a 509(a)(1), (2), or (3) designation to be defined as a public charity.
Successor - Advisor-A person named to carry on the decision-making after the death of the last surviving advisor. This could be a relative, friend or representative of the advisor.
Tax Deductible - A term that means deductions on a tax return are allowable by law. The Internal Revenue Service (IRS) allows individuals who itemize on their tax returns to deduct contributions to qualified charities. Because some limitations apply to what may be deducted, it is wise to seek the services of a professional advisor regarding all tax-related matters.
Testamentary Gift - A gift that is given upon the passing of the donor.
Trust - A legal agreement that allows an individual to set aside money or property of one person for the benefit of one or more persons or organizations. The legal title of a trust remains with the trustee.
Trustee - The person(s) or institution(s) responsible for administering a trust.
DISCLAIMER: This information is designed to provide information and illustration of the subject matters covered. It is not intended, nor should it be used as legal, accounting or other professional advice. It is always a good idea to seek legal and tax advice from your professional advisor(s).