Planned Giving

While Pioneer Bible Translators is pleased to provide information about the various ways to give, a giver should consult with his or her accountant, attorney, or financial planner to determine if some plans may be more tax advantageous. If you do not have an attorney or accountant, feel free to contact Pioneer Bible Translators and we can recommend an attorney or accountant to you.

A Note about Charitable Giving and Taxes

Although there are many tax benefits associated with charitable gifts, philanthropy is the foundation of every charitable endeavor.

However, charitable giving is one of the only income tax deductions that an individual can create. Being aware of the benefits will help you make sound decisions for yourself, for your family, and for Pioneer Bible Translators.

A charitable contribution is deductible for all donors who itemize deductions on their returns. The allowable deduction depends principally on the form and amount of the gift. While specific benefits are described below, in general you should know that, for a gift to Pioneer Bible Translators, you could receive:

Income tax savings through the charitable deduction for the value of the gift.

Avoidance of the capital gains tax on contributions of appreciated long-term capital gain property with respect to certain gifts.

• Retained payments for the life of a donor and/or other beneficiaries.
• The possibility of a higher rate of return than currently provided by the contributed assets.
• Elimination of federal estate tax on the value of the interest in the property passing to Pioneer Bible Translators upon the donor’s death.
• Reduced estate settlement costs.

Recommended Vehicles for Giving to Pioneer Bible Translators

Giving cash

Giving cash allows you to maximize you current deduction and minimize the process of giving. You can claim you deduction against a larger portion of your adjusted gross income and make an immediate impact on Pioneer Bible Translators.

Cash can be given to the Pioneer Bible Translators general fund which enables the organization to use the gift for its most immediate needs or can be designated to a specific project or missionary.

Giving can occur by check or online through our website.

Bequest in a Will

A bequest can be put into your will (cash, specific property or a percent share of the estate residual) which creates a gift for Pioneer Bible Translators in the future but doesn’t affect your cash flow or portfolio now. A bequest is a tax deduction for your estate as well.

If you have never created a will, it is important for your family and estate that you have one. Basic wills can be purchased relatively inexpensively at reputable online services such as LegalZoom.com, or you can hire a reputable attorney to assist you. Most state bar associations have “find a lawyer” services.

Life Insurance Policies

You can make Pioneer Bible Translators the beneficiary or the contingent beneficiary of a life insurance policy.

Gift of Securities – Stocks, Bonds and Mutual Funds

Marketable stocks, bonds and mutual funds can be transferred to Pioneer Bible Translators as a gift of securities. By transferring the stock or fund, rather than selling the security and giving cash, you are not responsible for the capital gains on the security. This gift type enables you to buy low and give high while avoiding capital gains tax.

Transferring can take two to six weeks to complete the transaction. Once you decide that a gift of a security is the appropriate choice, there are several key points to observe.

Transfer in kind – do not sell or redeem

It is important that the security gift be transferred into Pioneer Bible Translators’ name. If it is sold from your account, then the gift becomes a gift of cash rather than a gift of securities, and you will be responsible for capital gains tax.

Timing

As with other securities, the security is not considered a gift (for tax purposes) until it has been transferred out of your name and into Pioneer Bible Translators’ name. There is significant variability from security to security with regard to how long a transfer will take.

Electronic Transfers

If you hold publicly traded securities, a phone call to your broker with a written confirmation can be enough to make the transfer. The stock will be electronically transferred from your account to Pioneer Bible Translators’ account. Prior to making the transfer, please call us to obtain our account transfer instructions.

Required transfer paperwork for mutual funds

Most funds will require several documents from you and Pioneer Bible Translators to affect the transfer. The typical requirements for donor/charity are as follows:

Letter of instruction from donor

This should state what you are giving, when it should happen, to whom it is being given, the account number from which the mutual fund is coming, and to whom the transfer agent should speak if there are questions. The letter must be signed by the account owner(s) and signature guaranteed. The signature guarantee can be done by most banks and brokerages if the account owner is present and can provide photo identification.

Letter of instruction from charity

This should confirm the source of the expected gift, convey a new account application and corporate resolution, and provide the name of a contact person at the charity.

New account application from charity

Most mutual funds will require that its own account application be completed and the original returned. It is important to secure this paperwork from the mutual fund company as soon as possible.

Corporate resolution from charity

This generally can be obtained from the corporate secretary or gift-processing area.

Form W-9 from charity

Not all securities require this form, but it is easy to complete and may save precious time later.

Giving Real Estate

Should you give real estate?

A gift of unencumbered real estate may enable you to make a significant gift to Pioneer Bible Translators without incurring capital gains tax on the transfer of the highly appreciated asset. A gift of an interest in real property will entitle you to a charitable income tax deduction equal to the fair market value of the interest in the property on the date of the transfer, provided you have owned the property more than one year.

An Outright Gift

An outright gift is the simplest way to convey real estate. You can accomplish this by delivering to Pioneer Bible Translators a properly executed deed, suitable for recording, after review by Pioneer Bible Translators. Gifts of vacation homes are particularly favorable. The tax law exempts from taxation profits up to $500,000 for married couples filing jointly and $250,000 for single individuals on the sale of their principal residence. This same tax favored status does not apply to a vacation home, unless there is a plan to move into the home and make it a personal residence for two of the five years prior to sale. The appreciation in a vacation home is taxed at the effective rate of 20%, and there are no longer any rollover provisions available on the sale of the home.

Benefits to you

• You are able to make a significant gift.
• You receive a charitable income tax deduction on the fair market value of the property.
• You escape any potential capital gains tax on any appreciation the property has realized.

Gifts of real estate in trust

You may wish to explore ways to convert real estate into income-producing gift plans. This may be accomplished by several methods, but in most cases, the real estate is placed in a trust first and then sold and reinvested to produce income.

Benefits to you

• You may qualify for a charitable income tax deduction for a portion of the fair market value of the property placed in trust.
• You can avoid the capital gains tax liability due on the sale of the property.

Giving Retirement Plan or IRA Assets

You can make Pioneer Bible Translators the beneficiary of your IRA or pension funds. These funds are ordinarily taxable to the beneficiary who receives them, but the funds can pass income and estate tax free to Pioneer Bible Translators.

Income Producing Gift Plans

While Pioneer Bible Translators is pleased to provide information about the various ways to give, each person will need to consult with their attorney or financial planner to establish the specific giving trust or vehicle.

Charitable Gift Annuities

What is a charitable gift annuity?

A charitable gift annuity is both a gift and an investment. It is among the oldest, simplest and most popular methods of making a deferred charitable gift. You contribute cash, marketable securities, or under special circumstances, real estate, to Pioneer Bible Translators in exchange for a contractual promise on behalf of the annuitant to pay you a guaranteed income for life.

The annuity rate depends on the age(s) of the beneficiary(ies) and is actuarially designed to result in a gift at least 50% of the value of the initial transfer. A portion of each annuity payment represents the tax-free return of your investment in the annuity and, if you transfer appreciated securities, you may report the capital gain associated with the value of the annuity ratable over a period equal to your life expectancy.

Is a charitable gift annuity right for you?

If you wish to receive maximum expendable income now, if you seek to defer capital gains taxes, or desire the security and predictability of a fixed income, and would like to benefit Pioneer Bible Translators, then a charitable gift annuity may be right for you. The minimum age for establishing a charitable gift annuity is 55 and the minimum gift is $10,000.

Benefits to You

• You are able to make a significant gift to Pioneer Bible Translators.
• You are eligible to receive a charitable deduction for a portion of the gift.
• A portion of each annuity payment is treated as a return of the original investment and is received income tax-free over your life expectancy.
• The tax-free portion is greatest when the annuity is funded with cash.
• Any reportable capital gain from a gift of appreciated assets is spread out over your life expectancy at the time of the gift.

Based on an IRS discount rate of 2.6% and a contribution date of 5/8/17.

Charitable Lead Trusts

What is a charitable lead trust?

A charitable lead trust is a separately invested irrevocable trust you create by transferring cash, marketable securities, closely-held stock or income-producing property to a trustee you select. The trustee may be one or more individuals, a bank as co-trustee with Pioneer Bible Translators or a combination of these. You designate Pioneer Bible Translators as the beneficiary of income for a specified period of years or for a period measured by a person’s life. Upon completion of that period, the assets revert to beneficiaries you have designated in the trust instrument.

A unique feature of a charitable lead trust is that you may tailor Pioneer Bible Translators’ income interest. A charitable lead unitrust pays an annual income equal to a percentage of the value of the principal, as valued annually. You select the percentage payout when you create the trust. A charitable lead annuity trust pays a fixed amount annually to Pioneer Bible Translators. You specify the fixed dollar amount when you establish the trust.

Is a charitable lead trust right for you?

If you would like the capital value of marketable or income-producing assets to remain in your family but would like to give Pioneer Bible Translators the income stream from the assets for a set period of time, then a charitable lead trust may be right for you. If you would like to pass assets to your children or other persons with a reduced gift tax liability, then a charitable lead trust may be right for you. If you would like to remove assets from your taxable estate, but still have them pass to your heirs during your lifetime or at death, then a charitable lead trust may be right for you. You probably should not consider such a gift arrangement for amounts less than $250,000 because a charitable lead trust involves administration costs and some start-up costs in the form of legal or financial advice.

Benefits to You

• You are able to provide a stream of income from your trust for a term of years, or your lifetime to Pioneer Bible Translators.
• You will qualify for a federal gift or estate tax deduction.
• The beneficiaries of your trust will receive all of the trust’s assets when the trust terminates. Any asset growth that occurs in the principal of the trust will be distributed to your trust’s beneficiaries free of gift or estate tax.

Charitable Remainder Trusts

What is a charitable remainder trust?

A charitable remainder trust is a separately-invested irrevocable trust created by designating a person or persons to receive income payments of at least 5 percent annually and transferring assets to a trustee. The income beneficiaries may be any persons you choose. They may receive income for their lives, or for a specified period of time, not to exceed twenty years.

A unique feature of a charitable remainder trust is that you may tailor the annual income to meet your needs. The charitable remainder annuity trust pays a fixed dollar amount that you select when you fund the trust. You may prefer the annuity trust if you like the security of a fixed income and can fund the trust entirely at one time. You may not make subsequent additions to an annuity trust.

A charitable remainder trust pays an income equal to a percentage of the annual value of the principal; you designate the percentage when you create the trust and the trustee revalues the principal each year to determine that year’s income. A unitrust is more flexible than the annuity trust. You may make additional contributions to a unitrust and the investment strategy may vary with your changing financial needs.

You may contribute cash, appreciated securities and real property to a charitable remainder trust. Charitable remainder trusts are unique to each individual and designed to meet specific needs.

Is a charitable remainder trust right for you?

If you wish to retain income or to provide an income for someone else, would like to have your gift separately invested, and are interested in increasing your capacity to make a gift to Pioneer Bible Translators, then a charitable remainder trust may be right for you. A charitable remainder trust is particularly attractive if you fund it with appreciated property because there will be no capital gains tax when you fund the trust or when the trustee sells the asset(s). The minimum amount to establish a charitable remainder trust could range from $100,000 to $300,000 depending on who you select as the trustee, but the minimum also may vary depending on the structure of the trust.

Benefits to You

• You receive a charitable income tax deduction in the year that the trust is funded.
• Your taxable estate may be reduced.
• You avoid capital gains tax on the sale of the appreciated assets.
• You can turn a non-income producing asset into an income-producing one, without capital gains tax liability.
• You make a future gift to Pioneer Bible Translators that reflects your values and interests.

Deferred Charitable Gift Annuities

What is a deferred charitable gift annuity?

The deferred charitable gift annuity involves the current transfer of cash, marketable securities, or in some special cases, real estate, to Pioneer Bible Translators in consideration for which Pioneer Bible Translators agrees to pay you an annuity at some future date. A deferred gift annuity produces a larger current tax deduction than most other life-income contributions and is particularly ideal if you are planning for retirement. The annuity rate depends on the age(s) of the beneficiary(ies) and is actuarially designed to result in a gift at least 50% of the value of the initial transfer. A portion of each annuity payment represents the tax-free return of your investment in the annuity and, if you transfer appreciated securities, you may report the capital gain associated with the value of the annuity ratable over a period equal to your life expectancy.

Is a deferred charitable gift annuity right for you?

If you wish to ensure reliable income for the future needs of yourself or someone close to you, or are planning for retirement, then you may find the deferred charitable gift annuity to be a way to make a gift to Pioneer Bible Translators. If you appreciate the value of deferring capital gains taxes, desire security and the predictability of a fixed income and wish to make a gift to benefit Pioneer Bible Translators, then a deferred gift annuity may be an ideal way to achieve this. It is designed to appeal to the younger donor who has a high current income, needs to benefit now from a current tax deduction, and may be interested in augmenting future income. The minimum gift is $25,000.

Benefits to You

• You are able to make a significant gift to Pioneer Bible Translators.
• You receive an immediate charitable deduction for a portion of the gift.
• A portion of each annuity payment is treated as a return of the original investment and is received income tax-free over your life expectancy.
• Any reportable capital gain is spread out over your life expectancy at the time of the gift.

Based on an IRS discount rate of 2.6% and a gift date of 5/8/17.

Pooled Income Funds: A Hedge Against Inflation

What is a pooled income fund?

A pooled income fund combines and invests your gift with the gifts of others and pays your proportionate share of the fund’s yield to you for life, or to persons whom you designate for their lifetimes.

A pooled income fund is a trust to which many donors make gifts. There is a professional manager of the funds, and you or your designated beneficiaries retain the right to receive income. You contribute to a pooled fund with cash or marketable securities (excluding tax-exempt bonds) and your contribution generates a current charitable income tax deduction for a portion of the gift. The manager maintains a pooled fund whose objective is a balanced approach to growth and income. The minimum gift is $10,000 for individuals 55 and older. Additional gifts to your fund may be made in increments of $1000 or more.

Is a pooled income fund right for you?

If you seek protection of a diversified investment portfolio, appreciate the opportunity to select a suitable combination of investment yield and growth, and want to provide future financial stability for Pioneer Bible Translators, then a pooled fund might be right for you.

A pooled income fund is particularly appropriate if you anticipate making additional life income gifts or you want a convenient way in which to build your gifts toward the funding of a permanent endowment fund at Pioneer Bible Translators.

Benefits to You

• You are able to make a significant gift to Pioneer Bible Translators and add to that gift at any time.
• You receive an immediate income tax deduction for a portion of the gift.
• Fidelity Investments offers Pooled Income Funds in which you could participate. Pioneer Bible Translators would be named the beneficiary of your portion. Visit fidelitycharitable.org for more information from Fidelity.