Most churches have an endowment fund which helps to continue the "Work of the Lord", in lean years. Union Baptist would like to invite you to help start one.
We, like many other small churches, live in the moment and trust the Lord to provide for our daily and weekly needs. Through the tithes, offerings and generosity of members and friends, we are able to keep this church and it's missions actively engaged in promoting the cause of Christ here in northeast Connecticut. Your prayers and financial support make it possible for hundreds of families to have hope and faith in God.
Each month dozens of volunteers help distribute food, educate children, and minister to the needy through this growing ministry. We have seen first hand the miraculous provision of the Lord not only for us, but for those who are seeking freedom and liberty from the darkness in their lives. There is HOPE in Christ. As you can imaging this keeps us continually praying and receiving just what is needed, sometimes at the last minute. Thank you Lord! We are extremely thankful for the Lord's provision. Prayer works!
Our prayer for the long term is that the Lord would inspire some of you to consider leaving something in your will to Union Baptist Church or, if you prefer to one of our various ministries. We believe the Lord has called us to take a step of faith and ensure the financial stability of this church and it's ministries. If we each contribute a little after a while it will add up to a lot.
We know that the restarting of Union Baptist Church in 1997, was a call from the Lord. We were, and are honored, to respond to that call. We do our best to accomplish His will as we walk the path He has set before us. We are committed to serving Him no matter what the circumstances look like. "Faith is the substance of things hoped for, the evidence of this not seen." (Hebrews 11:1).
Will you prayerfully consider remembering Union Baptist Church in your long term planning? Your gift to this work will make the difference for generations to come. People will in the future bless the Lord for your generosity today. Let us all ensure that Union Baptist Church and New Hope Community Ministries is here for our grandchildren generation. God bless you and thank you for your prayerful consideration.
Sincerely,
Pastor Bill
Planned Giving
A planned gift is one that most often is made from one's accumulated assets, such as stocks, real estate or personal property, or life insurance. But you don't have to be old to consider a planned gift. The most common planned gift, for example, is made through one's will, commonly called a bequest. Everyone, regardless of age, needs to have a last will and testament. Other types of planned gifts produce income for life, either for the donor or for others.
The American Baptist Foundation works with individuals seeking to make a difference, in the future of ministries like ours. The donor decides the ultimate beneficiary of any type of planned gift.
Bequests
Every adult needs a legally written will, regardless of age. It is the only way to distribute your assets upon an untimely death. For parents, a will also establishes guardianship for their minor children. Otherwise, a court will determine who gains custody of surviving children.
Making a will has been described as one of the most important acts of a lifetime. It is a statement of who you are - a reflection of your sense of responsibility and what is important to you. Appropriately called a “Last Will and Testament,” it is, in a sense, your testimony — your witness to others of the people and things you value most.
Fail to make a will and the state will take charge. That can mean both delays and unnecessary expenses, and your loved ones may suffer in the process. Your will lets you assist friends, worthwhile causes and others that would be excluded in the distribution formula that the state has for your assets if you fail to plan.
You can prepare your will by:
- Preparing a list of what you own;
- Preparing a list of people you love and causes you cherish;
- Consulting with legal counsel, to make sure it is drawn up properly;
- And keeping it updated as family situations and personal interests change.
Charitable Trusts
You can create a charitable remainder trust by irrevocably transferring an asset (cash, appreciated securities, appreciated real estate, or tangible personal property) to a trustee such as the American Baptist Foundation. The trust can be for the lives of one or two persons or can be for a specific term of years. The trust can pay income in a variety of ways:
- to you only;
- to any other person only; to any two persons; and
- to more than two persons (such as children) if the trust is for a specific number of years.
At the death of the last beneficiary, or at the end of the term of years, the remainder will go to your congregation or any ministry of the church you name. The remainder can also be used to establish a permanent endowment with the American Baptist Foundation. The annual payments from such an endowment can be sent to your congregation or any part of the church you choose.
Tax considerations are also important. You will receive a charitable deduction for income tax for a portion of the trust value. The amount of the deduction varies depending on the payout percentage, the amount placed in the trust and the ages of the beneficiaries or the number of years of the trust. If you use long-term appreciated securities to fund the trust, you have the additional benefit of avoiding the capital gains tax on the appreciation in those securities. The same is true for appreciated real estate. The assets transferred into the trust are removed from your estate and are not subject to federal or state estate tax or probate costs.
The possible benefits of such a life income agreement are:
- satisfaction of having made a planned gift to your church;
- security of income for yourself and/or others;
- potential hedge against inflation (with a unitrust);
- income tax savings;
- capital gains tax savings;
- estate tax savings; and
- probate cost savings.
There are two forms of charitable remainder trusts - charitable remainder unitrust and charitable remainder annuity trust.
Charitable Remainder Unitrust
The payment to the beneficiary is based on a fixed percentage of the fair market value of the trust assets valued each year. The minimum percentage allowed by law is 5 percent and most trusts are established between 5 percent and 7 percent.
Payment will vary each year. The payout percentage does not change but the value of the trust does change, since it must be revalued each year. Payment each year may be ordinary income, capital-gain income, tax-exempt income or tax-free income, depending on the particular circumstances of the unitrust.
You can create a charitable remainder unitrust during your lifetime or at death through your will. The minimum amount necessary for such a trust with the American Baptist Foundation is $50,000.
An example of a Charitable Remainder Unitrust
Charitable Trusts
Mr. Robinson, age 65, establishes a $100,000 single-life unitrust with a 6 percent annual payout. He funds the unitrust with appreciated securities that had a basis of $40,000 and were paying 4 percent.
The capital gains tax on the gain of $60,000 would be avoided and the trust would be established for $100,000. He would receive a charitable deduction of $43,001 for income tax purposes.
In a standard unitrust, Mr. Robinson will receive $6,000 annually in quarterly payments ($100,000 x 6 percent). If the trust earned a net total return of 7 percent ($7,000), the additional $1,000 in earnings would be added to the corpus to make the value of the trust the second year $101,000. Mr. Robinson's payout the second year would be $6,060 ($101,000 x 6 percent).
Charitable Remainder Annuity Trust
The annual payment is based on a fixed percentage of the fair market value of the trust assets at the time the trust is created. The minimum percentage allowed by law is 5 percent and most trusts are established between 5 percent and 7 percent.
The payment from an annuity trust will be the same each year. Payment may be ordinary income, capital-gain income, tax-exempt income or tax-free income, depending on the particular circumstances of the unitrust.
You can create a charitable remainder annuity trust during your lifetime or at death through your will. The minimum amount necessary for such a trust with the American Baptist Foundation is $30,000.
An example of a Charitable Remainder Annuity Trust
Mr. and Mrs. Back, ages 72 and 70, transfer appreciated long-term securities valued at $100,000 to the American Baptist Foundation to establish a charitable remainder annuity trust. Their cost basis in the stock was $30,000. They want a 7 percent payout.
They will receive $7,000 each year ($100,000 x 7 percent). They will also receive a charitable deduction for their income tax of $35,889 and avoid all the capital gains tax on the $70,000 of long-term gain.
At the death of the last survivor, the remainder of the trust will go to the causes of the church they have designated. For example, the remainder could establish a permanent fund with the American Baptist Foundation, the income from which could be sent to their congregation undesignated, or designated for the specific causes they want to name.
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