Deferred Giving Policy
STATEMENT OF POLICY
The purpose of the planned giving program is to provide gift
opportunities to donors who are interested in supporting The
Church of the Larger Fellowship. The program enables potential
donors to take advantage of available philanthropic techniques
while providing financial support to The Church of the Larger
Fellowship.
- General policy
The Church of the Larger Fellowship encourages contributions
of cash, personal property, and real property, either as
outright gifts or through the deferred gift vehicles listed
in this Statement of Policy.
- Specific Policies
- Advisors. The Church of the Larger Fellowship shall
seek the advice of legal counsel in all matters pertaining
to the planned giving program and will not execute any
agreement without the advice of an attorney representing
The Church of the Larger Fellowship.
- Donor's Counsel. The Church of the Larger Fellowship
will encourage prospective donors to seek the advice of
their own accountants, attorneys, and other advisors in
reviewing the state and federal income tax consequences
of their gifts, the terms of trusts, or other agreements,
and the advisability of their gifts.
- Sample Instruments. Counsel for The Church of the Larger
Fellowship will review sample trust or other gift documents
for gifts and bequests of the types which the church is
prepared to accept. Sample instruments and language approved
by counsel for the church may be provided to prospective
donors or their advisors.
- Legal Advice. Neither employees of nor legal counsel
for The Church of the Larger Fellowship shall give legal
advice to prospective donors.
- Restricted Gifts. Gifts restricted to purpose or programs
not already approved by the Board of Trustees may be accepted
only upon action of the Board.
- Payout Rates and Donor Ages. Policy regarding payout
rates and ages of beneficiaries will be established by
the Planned Giving Committee. The policy will be applied
on a case-by-case basis with the approval of the Board
of Trustees.
- Confidentiality. Except as the donor may otherwise
agree, information concerning gifts which may be identified
with a particular donor shall be regarded as confidential.
- Types of Gifts
- Gifts of Cash. No approval is necessary for the acceptance
of unrestricted outright gifts of cash restricted by
the donor to programs previously approved by the Board
of Trustees.
- Gifts of Property. Personal or real property may
be given outright in a Charitable Remainder Trust, or
retaining a Life Estate. Because of the uniqueness of
each gift, it must be accepted by the Board of Trustees
with the advice of counsel and the Planned Giving Committee.
The Church of the Larger Fellowship shall not accept
any gift which would jeopardize the tax-exempt status
of the corporation as determined by counsel. Appraisal
may be required of the donor to satisfy requirements
of the Internal Revenue Code or Regulations, or for
other reasons. While The Church of the Larger Fellowship
may assist the donor in obtaining an appraisal, the
responsibility for valuation of the gift property remains
solely with the donor.
- Proprietorships. The Church of The Larger Fellowship
shall not accept interests in sole proprietorships or
general partnerships which may expose the church to
liabilities associated with the operation of an active
business. Moreover, the holding of such interest may
subject The Church of The Larger Fellowship to state
and federal income taxes, and could jeopardize its tax-exempt
status.
- Prohibited Transactions. The Church of The Larger
Fellowship shall not accept interests in property which
may lead to prohibited transactions described in the
Internal Revenue Code, as determined from advice of
counsel.
- METHODS OF PAYMENT
In addition to outright gifts, the following methods of
deferred giving are available to donors and acceptable to
the Church of the Larger Fellowship:
1) Bequests by will, outright gift, or in trust.
2) Pooled Income Fund.
3) Charitable Remainder Annuity Trusts and Charitable Remainder
Unitrusts.
4) Gifts of a Remainder Interest in a personal residence
or farm with a Life Estate retained by the donor.
5) Charitable Income or “Lead” Trusts.
Other gifts may be accepted on the advice of counsel and
with the approval of the Board of Trustees.
- Wills. Legacies and bequests are basic gift methods
by which a person may plan to give through a will. The
residue of a donor's estate, specific dollar amounts,
or a percentage of the estate may be given. Gifts of
securities, real property, and business interests may
be made as bequests. A testamentary trust may be established
with income beneficiaries receiving benefits for a fixed
term or for life, and with the church receiving all
or a portion of the residual principal.
- Pooled Income Fund. The Church of the Larger Fellowship
encourages and will assist in arranging pooled income
fund gifts. This provides for the donor and/or another
lifetime beneficiary to receive income from the funds
contributed. The actual income of the Fund, less expenses,
is paid out. The church receives the principal on the
beneficiary's death in shares determined by the donor.
The gift, which may be made in cash or readily marketable
securities, will be co-mingled for investment purposes
with other gifts made to the Fund. The investment of
the funds is managed by a firm selected by the church,
and a management fee is charged based on the value.
The Fund is intended to be balanced between the provision
of current income and the protection of the value of
principal. The minimum size of gift acceptable is determined
by the policies of the church. At this time, the minimum
gift size is $5,000, with a minimum addition size of
$1,000. The donor may declare up to two income beneficiaries;
beneficiaries should be 45 years old or older. Investments
are in keeping with church policies. A one-time tax
deduction is taken with each gift.
- Charitable Remainder Trusts. Income from funds placed
in a Charitable Remainder Trust will be paid to the
donor and/or other lifetime beneficiary. The income
may be a fixed amount, or a fixed percentage, of the
principal. The trustee may be the donor, the church,
or another designated individual or institution. The
Minimum value of a trust accepted by The Church of the
Larger Fellowship will be established by the Board of
Trustees.
- Life Estate. A gift may be made of a personal residence
or farm, with the donor and/or other beneficiary retaining
the use of the property for their lifetime. The church
would receive the property upon the death of the beneficiary.
- Insurance. Insurance policies must be owned by The
Church of the Larger Fellowship, and the church must
be the irrevocable beneficiary of the policy. The church
may also be named as a beneficiary of a life insurance
policy.
- Charitable Income Trust. Assets which produce income
may be placed in trust for a fixed term, with an income
interest going to the church. At the end of the term,
the assets return to the donor or other designated beneficiary.
- Planned Giving Committee
The Board of Trustees has established a Planned Giving Committee
to assist the Board in recommending policy regarding planned
gifts, identifying and cultivating potential donors, soliciting
gifts, and monitoring the administration of the gifts.
- Management
Management of trusts for which the church is Trustee shall
be under the general direction of the Board of Trustees.
The Board has designated the Finance Committee to oversee
the investment of trusts. The legal instruments establishing
each trust will specify who is responsible for the investment
of the trust's assets.
CLF
Board Policies
Last updated July 29, 2007
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