Vehicles of Giving

Contributions may be made for endowment through current gifts of cash, stocks or other securities or property; life income gifts, including charitable gift annuities and charitable remainder trusts; charitable lead trusts, or life insurance, or bequests. Gifts may be made for the general endowment fund of a local church or church agency or institution, or a special gift for a specific-named endowment fund in the local church, agency or institution of the United Methodist Church. The Virginia United Methodist Foundation can provide additional information and confidential assistance.

Outright gifts of cash, securities, or property are the most common ways to make a gift for endowment to a local church, agency or institution of the church. If you are using stock to fund your gift, be sure to transfer the stock to the church or the agency. Do not sell the stock and donate the proceeds, unless you happen to be dealing with highly depreciated securities. Using appreciated securities to make such a gift can have significant tax advantages for you, or you may want to donate your home or some other item of property.

Life income gifts provide a wonderful way to make a significant gift during your lifetime while retaining a life income for yourself, or for you and your spouse. This can be done in several ways including a charitable gift annuity or a charitable remainder unitrust. Both provide a life income and both can have significant positive estate and income tax consequences. You receive an immediate charitable gift deduction on the amount of the gift and a portion of the income is tax exempt. If you use appreciated securities, you may gain additional tax advantages. The annuity provides a guaranteed income based on your age and the amount of the gift. Husband and wife may choose a two-life charitable gift annuity. The charitable remainder trust annual income to you is based on a mutually agreed upon percentage of the annual fair market value of the trust. In both cases, the remainder value of the annuity or the trust goes to your local church, or to some agency or institution you designate, at the death of the donor or donors. In some cases, a charitable lead trust may be attractive to you.

Life insurance is a simple way to benefit your local church or agency or institution of the church. Just make the church or agency the irrevocable beneficiary of your policy and receive an immediate charitable deduction for the value of the policy. If you are still paying premiums on the policy, you may want to make the church or agency the owner of the policy and take a charitable gift deduction also for the premium.

Bequests offer an excellent opportunity to make a significant gift to your local church or to some agency or institution or program of the church. You may designate in your will a specific amount, or a percentage of entire estate, or all or a percentage of the residue of your estate after you have made certain specific family bequests. This kind of gift may, in fact, save considerable estate taxes and save your heirs significant inheritance taxes. You may designate your gift for a specific purpose or you may wish to make an unrestricted bequest.

In all of these gift opportunities, you may name the local church or the agency or the institution the direct beneficiary of your gift, or you may, for various reasons, choose to use the Virginia United Methodist Foundation as the trustee. This method is particularly appropriate when you have named several causes. The Foundation, as your trustee, administers the funds and sees that they are distributed as directed by you either through a trust fund or a named endowment fund honoring you or some member of your family.

More than 150 local churches, 50 individuals, 25 agencies or institutions, 10 districts and three Wesley Foundations have funds totaling $27 million invested through the Foundation. For more information, call Jim Bergdoll at the Virginia United Methodist Foundation, 1-800-768-6040, ext. 120, or e-mail at Foundation@vaumc.org.