Here are some options through which you can provide for Mount Olive Lutheran Church Foundation:

• Will Provision
• IRA or 401(k) Beneficiary Designation
• Current Gift
• Charitable Gift Annuity
• Charitable Remainder Unitrust
• Life Insurance

Some gift opportunities will be more appropriate than others, depending on your circumstances and charitable objectives.  Below is a brief summary of each option.

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Will Provision

While there are many ways to make an important gift to the Foundation, one of the most common is through a will provision.  In general, such a gift can be made using the following text:

I give, devise, and bequeath to Mount Olive Lutheran Church Foundation, a non-profit Minnesota corporation, located at 3045 Chicago Avenue South, Minneapolis, Minnesota 55407, ____ percent of my estate (or, the sum of $________; or, ____ percent of the residue of my estate) to be used as the Foundation deems most appropriate.

Generally, a percentage bequest best allows your gift to remain current with inflation.  You may wish to share this sample provision with your attorney, who can adapt it with your specifications and the rest of the language in your will.

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IRA or 401(k) Beneficiary Designation

Designation. You can designate the Foundation as the beneficiary of an IRA, 401(k) or other retirement account at the end of your lifetime.  These assets can be subject to both estate and income taxes if one passes them on to heirs other than a spouse, which can greatly diminish the value of the account.  Thus, retirement accounts are excellent assets to use for charitable gifts.  Designating the Foundation is simple and cost-effective, as there are no legal fees involved in this gift.  You need only obtain from your account administrator and complete a brief form.  In completing the form, you should designate as beneficiary:

Mount Olive Lutheran Church Foundation, #23-7179228

Lifetime Gift.  For those 73 years or older, one also can provide for the Foundation during your lifetime without tax consequences by giving some or all of your Required Minimum Distribution (RMD).  Donors may give up to $100,000 in a single year.

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Current Gift

A current gift is an excellent way to build the Foundation’s endowment immediately, maintain a comfortable timing for your gifts, and receive relief from capital gains taxes.  This kind of gift allows you to receive an income tax deduction for the full value of the gift.  For stock gifts, you can deduct up to 30% of your adjusted gross income (AGI) in a given year, with an additional five years to use up the remaining deduction.  With a gift of cash, you could deduct up to 50% of your AGI with the same carry forward period.

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Charitable Gift Annuity

The charitable gift annuity is a simple yet powerful way to provide for the Foundation.  With a gift of $10,000 or more, you can make a gift for Mount Olive’s future while still receiving guaranteed lifetime payments at an attractive payout rate plus a charitable income tax deduction for a portion of the gift.  Payment for a gift annuity can be immediate (ages 65+) or deferred to a later date (ages 55+) for an even higher payout rate and charitable deduction.

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Charitable Remainder Unitrust

The unitrust provides variable income based on the annual value of trust assets.  Thus, the size of your payment will be different each year depending on the performance of the trust’s investments.  Like the gift annuity, you can fund a unitrust with cash, stock or mutual fund shares.  Unlike the gift annuity, you also can use real estate or closely held stock to establish a unitrust.  Donors can create a unitrust with a minimum gift of $100,000 or periodic installments totaling that amount.

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Life Insurance

Life insurance also can be an excellent way to make a significant gift to the Foundation with smaller initial cash payments.  In some cases, donors purchase a policy and designate the Foundation as its owner and beneficiary.  Another option is to transfer to the Foundation ownership of an existing policy, which it could cash in or hold for the future.  In either case, you can pay any ongoing premiums through the Foundation and receive a tax deduction for each payment.  You also can use life insurance in conjunction with a life income gift to “replace” for your heirs the value of your charitable gift.

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Information on this website is not intended as legal or tax advice.  For information on how any gift may affect your tax situation, please consult your own professional advisor.

Want to learn more?

Contact any board member to set up a confidential discussion or email foundation@mountolivechurch.org