What is Planned Giving?

Have you ever dreamed of being able to make a significant contribution to the nonprofit organizations you believe in, like Evangelical Friends Mission? Planned giving is a way for you to do just that. Planned Giving is a technique that allows you to structure your gifts to Evangelical Friends Mission so that:

• They accomplish your charitable goals.

• They provide the maximum tax advantage available to you.

• If necessary, they provide income to you for as long as needed.

Planned Giving is a way to give and receive at the same time. When properly structured, planned gifts provide a true “win/win” environment. 

With careful planning, it is possible to reduce or eliminate income taxes (including capital gain) and transfer taxes (including gifts, estate, inheritance and generation-skipping). You can enjoy these tax savings while turning appreciated assets into an income for yourself or others. Planned Giving is a tool that helps you achieve your goals for Evangelical Friends Mission and enhances your financial plans and security.

Charitable Gift Annuity—a Viable Option

Fred and Marie Wilson contacted the Evangelical Friends Mission Office last fall. They had heard about Charitable Gift Annuities and were curious to learn if creating such and agreement with EFM were possible. We were happy to tell that because of our new relationship with the Mennonite Foundation we would be happy to help them set up such an agreement. To learn more about their story and how this works, click here.

Income Producing Gifts

Federal and state governments recognize the value of services provided by nonprofit agencies. So, they build incentives into the tax laws that encourage charitable giving. Planned giving takes advantage of these tax provisions so you can:

• Give to charity and receive income for yourself or others – even for life.

• Reduce or eliminate income taxes and inheritance taxes.

• Avoid capital gains tax on appreciated property.

• Become a more generous donor than you may have thought possible.

Evangelical Friends Mission offers a variety of Life Income Arrangements. A Life Income Arrangement works as follows:

• You irrevocably contribute cash, appreciated securities or other property.

• The property is then sold and re-invested to pay an annual income to you and/or another beneficiary for life or a term of years.

• Following the death of the last beneficiary or the end of the term of years, your gift is completed to Evangelical Friends Mission.

• Your completed gift is used for the purposes you designated at the time of your contribution.

Life Income Arrangements include the following benefits:

• Annual income for you and/or a beneficiary.

• Bypass realizing capital gains on gifts of appreciated assets.

• Immediate federal income tax charitable deduction.

• Potential estate tax savings.

• Professional investment management.

• Creating a future gift that reflects your vision for Evangelical Friends Mission.

Determining the Life Income Arrangement that is best for you depends on a number of factors. These include your age, type of assets, income needs and your financial goals. 

We are pleased to announce that Evangelical Friends Mission of Arvada, Colorado, and the Mennonite Foundation of Goshen, Indiana, have recently joined hands to better serve the Evangelical Friends community. This arrangement will allow EFM to draw on the over 50 years of history the Mennonite Foundation has in helping individuals become more faithful stewards. The Mennonite Foundation works with over 20 denominations and manages over a quarter of a billion dollars for many charitable organizations.   

Through this arrangement, they become the “back office” for Evangelical Friends, allowing Evangelical Friends Mission to concentrate on our primary mission - “to lead our people worldwide to live so close to Jesus Christ that we will worship, serve and obey God as faithful witnesses …” (See the home page for the complete statement.) We can do that with confidence that our partners in ministry, the Mennonite Foundation will be there to assist our donors when necessary. 

For a more detailed look at this new relationship, download your personal copy of our new brochure, "New Ways to Support Your Friends In Missions."

For more information regarding gifts for income, such as annuities and charitable trusts, click here and you will go to the section of the Mennonite Foundation page where there is a more complete discussion of these and other such instruments.

Making the Estate Planning Process Work for You

An estate plan is a very personal document, which reflects your goals and designates the distribution of the estate, which God has entrusted to you. There are many tools available in the estate planning process. Depending upon your situation, you may use one, several or all of these tools.

These tools include:

• The Will

• Revocable Living Trust

• Durable Power of Attorney/Physician's Directive

• Life Insurance

• Charitable Remainder Trusts

• Charitable Lead Trusts

• Charitable Gift Annuities

How to get started

Basic Planning Instruments:

There are two primary instruments used for estate planning, a Will and a Revocable Living Trust. 

The Will

The will is the most basic part of every estate plan. By definition, it is a legal declaration of a person’s wishes regarding the disposal and distribution of his/her estate after death. The Will is the legal document, drafted during your lifetime, which addresses numerous issues:

• Final testimony of your Christian faith

• Property and asset distribution

• Naming an executor

• Naming a legal guardian for minors

• Reducing estate tax liability

For a more detailed discussion of the will, click here.

Revocable Living Trust

The Revocable Living Trust contains language to distribute assets at death just like the will. It is something that is set up during your lifetime and transfer essentially all of your assets into the trust.  These assets would then be managed and controlled by you. Just like a will, the RLT can contain language to set up other trusts should these be desired. The Revocable Living Trust has many advantages over a will, including:

• Helps to avoid probate costs

• A private document, while a will is a public document

• More difficult to contest than a will

• A portable instrument that does not need to be changed when moving from one state to another

The Revocable Living Trust works as follows:

• Your attorney prepares the trust and the accompanying wills. Your trust contains language to direct the distribution of funds at the death of the second spouse.

• Upon creation of the trust, ownership of all your assets, except qualified retirement funds, is generally transferred to the trust.

• As mentioned above, a simple will (sometimes referred to as a "pour over will") will be prepared for both spouses, which at death merely transfers, or "pours over" any assets to the trust that were previously overlooked.

• For tax planning purposes, the Revocable Living Trust would also contain language to create a second trust called a Bypass Trust if needed. This trust would not be funded initially, but could be funded at the death of the first spouse to reduce future estate taxes.

Both spouses serve as trustees of the Revocable Living Trust during their lifetimes, managing the estate. At the death of the first spouse, the surviving spouse serves as sole trustee of the surviving Revocable Living Trust and could also serve as personal representative of the estate.

Creating a Bequest for Evangelical Friends Mission

You may already have an estate plan in place, and merely wish to include a bequest for Evangelical Friends Mission and/or one of our fields or projects.  Or, you may only want to create you own estate plan working with yours legal advisors and plan to include a bequest to EFM and/or one of our fields or projects.  The process would be as follows:

Contact Your Attorney

Your will is a legal document and should be drafted or amended by your attorney.  Our consultant is available to meet with you and your attorney to insure that your desires and goals are accomplished.

Select the Appropriate Type of Bequest

Bequests can be General, Specific, Residuary or Contingent.  They may be restricted or unrestricted, depending upon whether you interest is in missions in general, or related to a specific missionary or field or project. 

·         General Bequests are legacies left to certain people or causes that come from the general value of the estate, and are made by designating a specific dollar amount, a particular asset or a fixed percentage of your estate to Evangelical Friends Mission.

General bequest language:

“I give, devise, and bequeath to Evangelical Friends Mission/(location given below), the sum of $_________ (or a percentage or a description of the specific asset), for the benefit of Evangelical Friends Mission and its general purposes.”

·         Specific Bequests are made when a particular item or property is bequeathed for a designated purpose. (i.e. a car or van bequeathed to the mission for the use of missionaries on furlough.)

Specific bequest language:

“I give, devise, and bequeath to Evangelical Friends Mission/(location given below), the sum of (or a percentage or a description of a specific asset), for the benefit of Evangelical Friends Mission to be used for the following purpose: (state the purpose).  If at any time in the judgment of the trustees of Evangelical Friends Mission it is impossible or impractical to carry out exactly the designated purpose, they shall determine an alternative purpose closest to the designated purpose.”

·         Residuary Bequests are made when you intend to leave the residue portion of your assets after other terms of the will have been satisfied.

Residuary bequest language:

 “All the rest, residue, and remainder of my estate, both real and personal, I give to Evangelical Friends Mission/(location given below), for its general purposes.”

·         Contingent Bequests allow you to leave a portion of your estate to a particular charity if your named beneficiary does not survive you.

Contingency bequest language:

“I device and bequeath the residue of the property, real and personal and wherever situated, owned by me at my death, to (name of beneficiary), if (she/he) survives me.  If (name of beneficiary) does not survive me, I devise and bequeath my residuary estate to Evangelical Friends Mission (location given below), for its general purposes.'

Decide on any Designation Options

Often bequests are left to the mission unrestricted and without designation.  These are very useful in funding our programs and ministries on an on-going basis.  However, donors may wish to structure their bequest to support a particular field, or missionary.  They be directed a particular kind of project. 

Use the Appropriate Bequest Language

Suggested language for making a bequest could include, “I give, devise and bequeath to Evangelical Friends Mission, 5765 Olde Wadsworth Blvd., Suite 28, Arvada, CO 80002, the sum of $_____________ (or % of my residual estate), to be used for (e.g., it’s general purposes, establishing a memorial, or some other specific purpose).”  Perhaps this suggested language would be helpful to your attorney.

The needs of Evangelical Friends Mission do change from time to time.  New missions fields and projects come on the horizon.  Therefore, if a designated purpose is stated, it is preferable to also authorize the Board of Trustees to use the gift for other purposes if the Board determines that the designated use is no longer appropriate.

Notify Us of Your Plan (Optional)

We hope you will tell us when you have included Evangelical Friends Mission in your plans.  We would like to be able to thank you rather than your heirs when you are gone.  However, we recognize that many friends of the mission prefer to make this commitment without acknowledgement.  We certainly respect those wishes.

Christian Stewardship and the Estate Planning Process

We are pleased that so many people in recent years have become involved with EFM financially.  While prayer is the fuel God uses to stir up His people, money/financial resources are the practical expression of this when it come to buying airline tickets, visas, sending and equipping those whom God has called to represent Him—and us—around the world.  We are pleased with the number of people who have chosen to include EFM in their long-range financial plans, including estate plans. 

These people are pleased and get a sense of satisfaction from the fact that they are using their financial resources to advance the Kingdom of God. They have the satisfaction of knowing they are making a difference and being wise stewards of the resources that God has entrusted to them.  More and more people are being generous in remembering EFM in their wills and trusts and many others have asked for information on how they could include EFM in their plans. 

You can plan an instrumental part in ensuring EFM’s future ministry through your estate and gift planning today.  Depending upon the arrangements you choose, you may also: 

• Reduce your income taxes
• Avert capital gains tax
• Increase your current income
• Receive payments for life
• Achieve no-cost, worry free asset management

To learn more about Christian Stewardship and the Estate Planning process, click here.