what is is? What do you know about the Free Will Baptist Foundation—the planned giving arm of the denomination? Recently, we sat down with retiring Director Bill Evans to discuss their ministry. Curious about the item in the picture to the left? Find out more at the end of the interview.

Q. How would you describe the “ministry” of the Foundation?

A. My simple answer would be that it is a ministry of “helps.” The Foundation helps people accomplish their goals to meet family needs and dreams and to support various FWB ministries.

Q. What can you do for folks who need income but also want to give to ministry?

A. We offer several agreements that could accomplish both goals. Factors such as age and income needs among others will determine which agreement is appropriate.

Q. Why does age make a difference?

A. Well, for one thing, a 50-year-old should be more concerned about inflation than an 80-year-old. The agreements we offer address these differences.

Q. What about a 55-year-old who wants to provide retirement income?

A. He or she can fund an agreement with no IRS contribution limits and at the same time receive a partial charitable tax deduction.

Q. Those are interesting features. How is this possible?

A. There are no limits on the amount you give to charitable causes and since this results in a gift to ministry at your death you receive a partial charitable tax deduction.

Q. What about individuals who have some assets but not a lot of cash?

A. Oh! Assets other than cash are ideal for this type of agreement. Highly appreciated assets are specially favored because the gift is valued at its full fair market value (partial tax deduction) while avoiding all capital gains.

Q. You’re kidding. I thought it was impossible to avoid capital gains. How does that work?

A. When you transfer the asset to this agreement, because it is irrevocable, it is the same as if you had transferred it to a Free Will Baptist ministry and charitable organizations are tax exempt.

Q. Ok. Let me get this straight. Through this agreement you can avoid capital gains, receive a partial tax deduction, receive a lifetime income and upon your death it goes to a FWB ministry. Is that correct?

A. Yes. This agreement is one of the best vehicles you can use to benefit your favorite ministry.

Q. What does the Foundation do with the asset when it is transferred?

A. In most cases it is sold and the proceeds reinvested in a diversified portfolio of stocks and bonds.

Q. Does the Foundation staff choose the investments?

A. No. We have developed investment policies to match the needs of the donor, then leave the day to day decisions of choosing investments with a professional. We also take care of all the administrative requirements and filings required by the IRS.

Q. Once it has been invested is the income the donor receives taxable?

A. Usually Yes. The donor generally receives a mixture of long-term capital gains, dividends, short-term capital gains, and interest income. Long term capital gains and dividends are currently favorably taxed so we try to incorporate that into the investment policy to take advantage of this tax savings.

Q. Well, I guess you can’t expect the income to be tax-free as well. How long and how many of these agreements do you currently manage.

A. The Foundation was founded in 1980, but we starting managing our first two agreements in 1993. We now manage several.

Q. Are there any other advantages that I have missed?

A. Yes. It is possible to enter a joint agreement benefiting two or more people for life. In some situations,agreements can be drafted to go beyond the donors’ death and benefit your children or others for a fixed number of years.

Q. So your children would receive a partial inheritance, right?

A. That is correct. The number of years may vary due to your age at the time you establish the agreement and the payout rate.

Q. You have done a great job describing this agreement, but what is it?

A. It is called a Charitable Remainder Unitrust sometimes refered to as a CRUT or simply a Unitrust.

Q. The program sounds great. How can someone get more info on the Unitrust?

A. Our interactive website www.fwbgifts.org allows people to run general “what if” scenarios for their situation. More specific information is offered via email at foundation@nafwb.org or by calling our toll free number at (877) 366-7575.

WHAT IS IT?

Are you curious about the picture? When the orbs are placed in the muzzle of an animal, and a lead is tied through the circles at the other end, wrapped around the arms, and into the hook, an effective lead is provided.  Even the largest of animals could be easily led. That’s why the item in the picture is called a “come-along.”