How to Give and Keep at the Same Time

A Gift That Can Provide You with Income for Life

The tax laws of the U.S. are a mystery to almost all U.S. citizens. Their complexity is so great that even tax lawyers end up arguing the fine points. But there are many opportunities that are clear, and one of those opportunities allows you to make a charitable gift that will pay you income for your life! Instead of living off the income stream from REITs, CDs, or dividends, you can have a guaranteed and stream of income while also making a charitable donation and possibly gaining a deduction.

There are two life-income gifts you can make, the charitable remainder trust and the charitable gift annuity. They are significantly different.

The charitable remainder trust

A charitable remainder trust is the more complicated of the two. It can be funded with stocks and bonds, real estate or other appreciated assets. The assets are donated into a charitable trust, with the trust making annual payouts based on its market value.

The charitable lead annuity

The charitable gift annuity is similar to a commercial annuity, except part of the gift of either cash or stock qualifies for a charitable tax deduction. In exchange, you get a set amount of the original gift as a payment for life; the percent is determined by your age at the time the gift is made. Even better, a portion of the payments you receive are tax free.

Then, when you pass away, Idlewild Baptist Church can be made the residual charitable beneficiary. That means that at the time of your death, all remaining funds go to Idlewild in your name.

We recommend you contact The Idlewild Foundation, by calling at (813) 264-8713. We can recommend an adviser who can help provide you and your attorney with information to help you make the gift that is best for your financial needs and circumstances.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.

It Isn’t That Hard to Give

Let’s imagine a man who wanted to save time and money but still be generous and let’s call him John Doe. John had a 401(k) and non-qualified savings and investment accounts he had built up by being a good and wise steward during his working years. The 401(k) rolled over into an IRA upon his retirement. His IRA was valued at about $200,000. His non-qualified savings and investment accounts were also valued at about $200,000.

Being a generous man, John wanted to leave $200,000 to his church upon his death. He also wanted his two children to receive a reasonable amount but not so much that they might lose their work ethic.

John was careful and frugal while he worked and nothing changed in his retirement. He saved a thousand dollars and did his will by himself online. His will was written simply and said exactly what he wanted, $200,000 to his church from his bank accounts, the sale of his car and the rest of the $200,000 from a non-qualified investment account. The IRA was to go equally to his two children.

That was reasonable and simple. There was no need to pay some expensive estate planning attorney, was there?

Unfortunately, John passed away before he discovered that being frugal isn’t always being wise. The problem is that his “estate plan” was too simple and wasn’t a plan at all. That “plan” was unwise, did not consider taxes, and reduced substantially the money John’s children inherited. Here’s why.

John’s church got the first $200,000, mostly out of his banking accounts, his car, and a few investments. These were low or no appreciation assets and accounts. His children got the rest, including a large tax bill for the IRA because of the deferral of income and the appreciation of the investments within the IRA. Rather than have a do-it-yourself “plan,” John should have funded his bequest to his church with his IRA. That would have reduced the tax due to the IRS because the church would not have had the same tax bill as the children.

The result of John’s “plan” was higher taxes and a reduction in what his children would receive probably by $10,000 each, perhaps more, depending upon the tax brackets of the children and the amount of appreciation of the IRA.

One of the easiest and best bequests to make to a church or charity, whether before or after death, is a highly appreciated asset, including retirement accounts like 401(k)s, 403(b)s, and traditional IRAs, investment accounts that have held stock for a while during a rising market, and real estate that has been held for a long time. These gifts to a charity cost the donor nothing and the IRS comes up with far less than if the bequests or gifts were to a person.

There can be hidden taxable income in a number of different assets, including life insurance, CDs, Savings Bonds, nonqualified stock options, and deferred payments of capital gains, among others, under our complex tax laws.

In most cases, naming Idlewild Baptist Church as the beneficiary of these types of assets, especially when they are highly appreciated and contain deferred income, gives the estate and heirs the best tax benefits, avoiding both income and estate taxes.

Life insurance also can be an excellent gift, too. Naming the church as a primary or contingent beneficiary of an existing or new life insurance policy can result in a federal estate tax deduction for the full amount of the proceeds payable to the church regardless of policy size.

This is good general advice, but you need to be aware that every person’s situation is unique and that your particular circumstances and investment and retirement investments might change the recommendation for the best results. Seek the advice of a qualified tax or financial adviser before finalizing your paperwork.

For more information and detail, call us at (813) 264-8713. We may not be able to answer your question but we can refer you to a qualified Christian adviser who can.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.

Save $ in 2020

Saving money is a challenge. The money seems to (and does) build up slowly and the temptations to cheat and spend rather than save are like dieting temptations, easy to find and hard to resist. Here are a few practical ideas to keep your savings increasing and to help you hold the line on spending. When you save on one of the ideas here, save the money toward an emergency savings account, your retirement or a special trip and vacation.

Try these ideas and save:

1. Your car insurance rises every year even though your car is older and is worth less. You would think at least the collision coverage would decrease. It will, if you decide to shop around at least every three years. You may not want to decide based upon premium cost alone, because there is a lot to be said about receiving good service, but if money is tight, shop around. 

2. If you have emergency savings, go with high deductible collision coverage. You can save a lot that way. I will admit it may cost you if you have an at fault accident, but if you go several years without an accident, your savings will far exceed the amount of your deductible. If you don’t have an emergency savings fund, start one now.

3. Shop your homeowners coverage as well. Those premiums tend to rise more than the value of your home. Home insurers, like car insurers, count on your not wanting the hassle of changing carriers.

4. Drop your magazine subscriptions. Check and you may find the very same magazine is available at your nearest public library. Or, alternatively, spend a quiet evening at a local bookstore, reading your favorite magazines for free.

5. Hold a garage sale. Go through your closet and find clothes you have not worn in a year. The chances are you will never wear it if you haven’t worn it in a year. Pull the junk out of your closets you never use and out of the attic that you stuffed up there and see if there is someone else who wants your junk. You won’t make a lot, but you will make more than doing nothing will make for you. Alternatively, try eBay or sell online. A second alternative is for you to donate what you have to a Christian thrift store and take the deduction on your tax return if you are able.

6. Check your Internet, cable and phone plans. You can almost always improve your plan and save money if you check once a year. Ask yourself if you really need that landline. We dropped ours over a year ago and discovered we received fewer junk calls during dinner.

7. Get a free energy audit from your power company and see where your electric use can be trimmed. Consider adding attic insulation if your house is old, many types of older insulation settle and lose R-value, costing you money every month. Alternatively, you could do something really radical and turn off the lights when you leave a room.

8. Drop your gym membership and take up walking. It is easier on the knees and hips than jogging, can be done well into your 70’s, and is free!

9. Keep your tires properly inflated, put the right gas in your car and maintain it based upon the manufacturer’s recommendations.

10. If you use AAA for emergency roadside service, go to an AAA location and check out their available gift cards. You get a 3 to 5% credit in AAA dollars towards your next year AAA bill. If it is a card for a restaurant you are going to eat at anyway, a store you will shop at anyway (or even Amazon Smile), or a gift card you would give as a gift anyway, you will save an annual AAA fee in a fairly short time, certainly less than a year.

11. While I am on the topic of gift cards, buy them at a discount from a discounter like giftcardgranny.com. You can at times find meaningful discounts on hundreds of gift cards including Walmart, Target, and many large retailers.

12. Buy used, not new. A used car, if checked out carefully, is a great savings over a new car. New cars lose thousands of dollars almost the same moment you drive the car off the lot. If the car isn’t too old, you may still have some warranty left – always check. If buying a used car, always check the obvious things such as the tires. Many dealers will put new tires on a car if you spot a worn or repaired tire.

13. Used books are readily available at thrift stores, or, even better free books, magazines and videos are available at the public library.

14. Buy an Entertainment Book and eat out for 50% at many restaurants. Try Entertainment Books and see what restaurants and services are covered in your area. In the Tampa Bay area there are over 150 restaurants and services offering substantial discounts. You quickly save the cost of the book, try new places and then save a lot more.

15. Save without the hassle of coupons. There is a rather remarkable website worth checking – Savingstar. You can go to their free website, check the products you want to buy from a store and get cash back after you shop. You can link your store loyalty card or upload the receipt and save. The stores available can be seen from the site and include Publix, WalMart, Target, CVS, Walgreens and literally hundreds of other retailers.

Saving just requires that you try. The problem is that we tend to get so busy, that time is a commodity that is hard to find. But if you can find the time to try a few of these ideas here, you can save a lot. If you have additional ideas, call or email us and we will pass them on.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus. He began serving as the Executive Director of the Idlewild Foundation in 2016. He has been married to the love of his life, Mona Puckett Campbell, since 1972.

A Great Start to 2020

New Year’s Resolutions to Kick-Off the Year

What are your New Year Resolutions for 2020?  Lose weight – check, exercise more – check, and get in better shape – long overdue! They are there for me almost every year. But then life happens! Sometimes I keep such a resolution for a few weeks or maybe even a few months with strong encouragement. After that, the busy days of spring begin to take over.

Instead, join me and make one of your resolutions for 2020 to review family financial and estate plans. Significant life changes (and even significant market changes) are something that should trigger in our minds the question, “Do I need to change my will or trust?” or “Should I change any of my beneficiary designations?” If you need an easy way to keep track of your bequests and beneficiary designations on bank accounts, IRAs and financial or investment accounts, make a list. It is best done on a computer file so you do not have to re-do the entire document each time there is a change, but then print it and keep it with your estate and financial documents just in case your computer files are somehow lost. For a few additional thoughts on this topic, see A Few Estate Planning Pitfalls (especially #3) and A Few More Estate Planning Pitfalls.

Also, think about adding a few fresh ideas in which your entire family can become involved! Here are some things we are trying that I can offer as suggestions to prayerfully consider.

  1. Serve: Serve together as a family, a small group or just as a group of friends.  Find a ministry that touches your heart and about which you can be passionate. Schedule yourself to serve regularly in this ministry with your family, a group of friends, or involve your small group. On a simpler note, you can visit a friend you haven’t seen in a while, perhaps someone out with an illness or injury. Always remember that stewardship is a L.I.F.E activity that is not limited to dollars and cents. It involves your Labor, your Influence, your Financial resources, and your Expertise, your entire L.I.F.E. Stop by the MVNT booth in the Gatheria at Idlewild. Learn how you can discover God’s gifting to you and put your gift(s) into joyful service. You can give an hour a week – yes, you really can.

2. Broaden your view: Look for new opportunities to broaden your stewardship. Never neglect giving your tithe to your home church. Check out Does the New Testament Teach Tithing? Know that God has also called us to give over and above the tithe. Read and reflect upon Deuteronomy 15, Matthew 23:23, and Luke 12:33-34.

3. Give wisely: When you find a ministry that touches your heart, consider giving as well as serving. You can give in different ways. Instead of just monetary giving, consider giving an appreciated asset, stock, or a piece of property. This type of giving may be better for both you and the charity than if you sold and donated the net proceeds. This strategy may reduce your tax burden and increases the amount the charity receives. Not sure how to do this? The Idlewild Foundation can show you how. Just give us a call at (813) 264-8713.

4. Learn about Giving Funds: Explore the possibilities of a Donor Advised Fund that will allow you a deduction now, but choose who you want to support and how much you will give at a future date. This kind of fund can be an efficient means of setting up recurring donations and makes record keeping for taxes easy. Learn more at Ways to Give, or just give us a call.

5. Share your experience with others: If you have a life example of how God has blessed you and how you have given back to Him, share your story. Tell your small group, your friends, and your family about how you’ve been blessed and how you’ve been able to bless others.

6. Accelerate your life: In 2020 as Idlewild continues to accelerate its debt payments and kingdom investments, join Pastor Ken in that goal. Be a part of Accelerate! Give over and above the tithe to accelerate payment of the last of the debt and allow Idlewild to enter a new phase of even more service to the kingdom.

Here’s another idea! Why not spend some time reviewing your spending for 2019? By looking at your bank and charge card statements you’ll get a pretty good picture of where your money was spent and what your priorities have been. Did you find ways to glorify God through any of your spending? Did your spending in 2019 give more glory to yourself than to God? Could you do better? Give God the credit He is due. He made your income and your abilities possible.


Deuteronomy 8:18
18     But remember the Lord your God, for it is he who gives you the ability to produce wealth …


Give God the credit He is due. He made your income and your abilities possible.

Take some time to sit down with your family and discuss ways to manage your money more effectively. Consider speaking with someone from the Stewardship Ministry of Idlewild Baptist Church or with us at The Idlewild Foundation. We can give you tips and ideas in managing your money. And don’t worry. You won’t be bludgeoned until you agree to give money to the Foundation! On the other hand, you will learn ways that you can further God’s kingdom by sharing His blessings with others – with open hands!

You can contact us at The Idlewild Foundation, (813) 264-8713 or email me at jcampbell@idlewild.org. Make 2020 a year to celebrate!

 

About the Author

John Campbell has retired from a 40 year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.