brown on green, A Regular column about finances

Double Gift; Double Impact

The older we get, the more we desire to see the ministries we love make a big impact for the Kingdom. Many older Americans have accumulated assets and realize they have the capacity to make a large gift to help ministries accomplish their goals. However, older adults also want to be a big help to their grandchildren, helping them pay for college so they can avoid the excessive college loans that can hinder their future. Is it possible to accomplish both goals? Yes, it is. A planned giving opportunity called the Education Unitrust can accomplish both goals.

This is done by setting aside a large ($100,000 or more) asset that can pay an earnings rate to a grandchild or a series of grandchildren over a defined period of 20 years or less. When the defined period expires, the asset goes to any Free Will Baptist ministry you choose. Over a 20-year period, a $100,000 gift will provide approximately $100,000 to your grandchildren while still providing $100,000 to ministry.

This method allows older adults to accomplish both goals of benefiting their grandchildren and making a large gift to ministry that can have eternal effects in spreading the gospel. The great news is that in addition to accomplishing your goals, the donor also receives a partial tax deduction. Another advantage is that by choosing a highly appreciated asset to fund the gift, all capital gains taxes can be avoided as well. The income that is paid out annually will be taxable to the recipients (grandchildren in this case) and not to yourself. Generally speaking, college-age individuals do not have a heavy tax burden, so the funds will have little impact on their taxes.

If your grandchildren attend Welch or another Free Will Baptist college, it will create the double impact of helping your grandchildren prepare for ministry while leaving the remainder to the college as well. Contact Free Will Baptist Foundation to learn more about how this planned gift could work for you.

About the Columnist: David Brown is director of Free Will Baptist Foundation. To learn more about the grants program, visit www.fwbgifts.org.