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TYPES OF GIFTS
Planned gifts—the result of estate planning—are generally funded from accumulated resources or assets, rather than from income. The types of gifts you choose to give reflect the goals and benefits you want.
| The first goal for creating an estate plan is to take the hand of future generations. For American Baptists that goal usually includes designating American Baptist ministry or mission activities. They comprise the whole spectrum of Christ's work: |
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Education
Discipleship
Evangelism
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New Churches
Healing
Justice
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Your Foundation Representative can help you direct your gift to support the particular ministries you favor.
There are 12 types of gifts from which you can choose. Most gift types include illustrative, true stories.* You can read them by clicking on the story title under each picture below. (It may take a moment to connect to these stories.)
* Adobe Acrobat Reader is required.
To download a free version, click here.
You may weigh the results of the gifts by using our Gift Calculator, identified with this icon  .
Bequest in a Will -- You arrange for the future with the most familiar type of planned gift.
| This provides one of the simplest ways to give. A bequest can be made in the form of: |
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Mari & James A.Michener
Gratitude to God |
A Foundation representative will be pleased to work with you and your attorney to provide the right language so that your bequest will be directed exactly as you wish.
Living Trust -- You have flexibility in estate planning decisions while gaining some other advantages.
Similar to a will, this type of trust is often used by individuals and couples to create a place for most of their assets. Its major advantages include saving probate and administrative costs that would occur if assets were distributed through a will. At death the trust governs the use and distribution of assets in it. As in a will, the trust can direct giving of assets to American Baptist ministry and mission. While a probated will is public record, the terms of a trust are not.
Charitable Gift Annuity (CGA) -- You receive guaranteed fixed income for life.
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A Charitable Gift Annuity provides guaranteed fixed payments for the lifetime(s) of the person or persons named in the CGA agreement, known as the annuitant(s). They can include up to two people—you and your spouse or one to two others. The return rate, most or all of which is tax-free, is very competitive and is based on the age(s) of the annuitant(s) when the gift is made. Following the lifetime(s) of the annuitant(s), the portion of the original gift remaining goes to strengthen an American Baptist ministry or mission you have chosen. The minimum gift is $1,000 for a one-life annuity; $2,000 for a two-life annuity.
Click here for our Gift Calculator.
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Kathleen & Ralph Tingley
A Win-Win Situation |
Deferred Charitable Gift Annuity -- You receive guaranteed fixed income for life.
A deferred CGA possesses the same characteristics as a CGA except that payments are deferred to a date chosen by you—at least one year after you make the gift. The minimum gift is $1,000 for a one-life annuity; $2,000 for a two-life annuity.
Click here for our Gift Calculator. |
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Mary & Rolland Farnsworth
Blessings for the Future |
Charitable Remainder Unitrust (CRUT) -- You name who will receive income for life based on the trust's value each year.
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This provides payments to you or one or more beneficiaries for their life-times, a term of years, or a combination of lives and term of years. These payments equal a fixed percentage (at least 5%) of trust assets, revalued every year and, therefore, payments vary in accord to that value. A CRUT is an irrevocable trust, meaning that it cannot be changed. That is why the tax benefits are so great. When payments end, the remaining assets ("remainder") go to support the ministry or mission work you chose. The minimum gift is $40,000 to which you can add.
Click here for our Gift Calculator.
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George Pitt Beers, Sr..
Make a Plan
While You Can |
Charitable Remainder Annuity Trust (CRAT) -- You name who will receive income for life based on the trust's initial value.
A CRAT is similar to a unitrust except that payments equal a fixed percentage (at least 5%) of the value of your initial gift. This means that your payments will always be the same whether the value of your trust assets increase or decrease. The minimum gift is $40,000 to which you can add.
Click here for our Gift Calculator. |
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Hermina & Bert Iddins
A Poor Pastor? |
Retirement Plans -- You support ministry and mission while thinking of bequests to family members.
| Income from retirement savings—IRA, Keogh, 401(k), 403(b), etc.—allows you to make new choices for yourself and your family. These savings are one of the best assets to use to benefit Christian work. Since retirement funds have usually been built with pre-tax dollars, bequests from them to family members are subject to income tax. However, when these retirement savings are used to support American Baptist ministry and mission, they are tax exempt. Your family, therefore, will actually receive more from your non-retirement assets. |
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President Fillmore
Millard Fillmore
and the Foundation! |
Life Insurance -- You use a multi-faceted instrument that provides more than protection.
| You can name a particular ministry or mission endeavor to receive a portion or all of the proceeds of an insurance policy no longer needed for family protection. You can also take out a new policy, naming the American Baptist Foundation as a beneficiary or co-beneficiary and then specifying in a letter to the Foundation the ministry and mission efforts you wish to support. |
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Dr. George W. Russian
A Witness & a Legacy
at "Graduation" |
Donor Advised Fund -- You make a gift now but retain the right to advise the Foundation later on the use of the funds.
| If you have funds of at least $10,000 and you: 1) know you want those funds to support ministry and mission, 2) want to receive a tax deduction now, and 3) are not sure yet which American Baptist endeavors you want to sustain, then this way of giving is for you. It permits you to be more comfortable in distributing funds over a period of time after you have had an opportunity to understand the ministry or mission's needs. It also can involve family members in making the distribution choices. |
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Carolyn & Norman Taylor
Time for Giving |
Endowment Fund -- You establish an endowment that continually supports American Baptist ministry and mission.
By definition, an endowment fund is "a permanent fund established to bestow financial stability for a valuable cause." With no more valuable cause than the cause of Christ, individual American Baptists can turn to the American Baptist Foundation for assistance in ensuring perpetual support for ministry and mission. The minimum gift to establish an endowment is $10,000 to which you or others can add.
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Maybeth Buermann
Witnessing for Christ |
Retained Life Estate -- You deed your home to the Foundation while you remain in it.
You and your spouse or even another person can live in your house or condominium, or at your farm for life. After that, it is sold by the Foundation with the proceeds going to ministry and mission efforts you have chosen. In the year you have deeded your house, condo, farm, you can obtain an income tax deduction.
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Marvin & Marion Batchelder
Mountaintop Experiences |
Revocable Charitable Trust -- You retain access to your funds for possible future needs.A Revocable Trust provides variable income for life. You can withdraw all or part of the funds if needed. After your lifetime, the trust becomes irrevocable and is excluded from your probate estate. The trust's balance goes to support the American Baptist endeavors you have chosen.
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