Frequently Asked Questions
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What is an Endowment?
An Endowment allows you to continue to bless the ministry of your choice on a permanent basis. It’s a planning vehicle that provides the ministry with an annual payment that it can count on every year. An endowment requires that the principal remain intact indefinitely—or until sufficient assets have accumulated. The intact principal is invested to create a source of income for your chosen organization or ministry.
When will I receive the deductions for the funds in my DAF/Endowment?
When the funds are placed into the account.
Can my family receive benefit from a Gift Annuity after my life?
If the annuity is originated as a two-life annuity, it will continue to the surviving beneficiary. After the life of the surviving beneficiary the gift is then made to ministry.
What is a Deferred Gift Annuity?
A Deferred Gift Annuity is created when a gift of cash or an appreciated asset is given to charity in exchange for fixed payments to the donor for life, with payments commencing at a determined future date.
What is the difference between a Charitable Remainder Unitrust and a Charitable Remainder Annuity Trust?
The major difference is in the calculation of the payments to be paid to the income beneficiary(ies) of the trust. Payment calculation of a Charitable Remainder Trust is dependent on the valuation of the assets of the trust, and an annuity trust payment is based on a single valuation while a unitrust payment is based on recurring valuations. Annuity trust assets are valued at the time the assets are placed in the trust. The trust assets are never revalued. Annual payments remain the same, whether the assets appreciate (increase in value) or depreciate (lose value). The assets in the unitrust are revalued annually. If the trust assets appreciate, the payments to the income beneficiary(ies) will increase. If the trust assets depreciate, the payments will decrease.
What does the Assemblies of God Foundation offer in terms of planned gifts?
Assemblies of God Foundation planned giving tools such as form-based Wills, Revocable Trusts, Charitable Remainder Trusts, Charitable Gift Annuities, Endowments, and Donor Advised Funds are a few of the available planned giving tools and Assemblies of God Foundation also has the ability to act as professional trustee under many circumstances. The Assemblies of God Foundation has a team of highly qualified attorneys who serve the organization in assisting a broad set of individuals, churches, ministries and institutions in fulfilling their planned giving needs.
What is a Charitable Gift Annuity?
A Charitable Gift Annuity is a contract wherein an individual or couple transfers cash or securities to the Assemblies of God Foundation in exchange for a promise to pay the donor(s) for the rest of their lives. Payments and rates are calculated based on the life expectancy of the donor(s). Charitable Gift Annuities are typically most beneficial to seniors who want certainty and stability in their income stream. Creation of a Charitable Gift Annuity typically creates an immediate charitable tax deduction for the donor(s), and payments are backed by the issuing entity. Upon the death of the donor(s), Assemblies of God Foundation will distribute 50% of any remaining amount of principal to the church, ministry or charitable organizations designated by the donor(s). Charitable Gift Annuities are available in most states, but there are a few exceptions.
What is a Charitable Remainder Trust?
A Charitable Remainder Trust is an irrevocable trust designed to receive property, whether it be cash, securities, appreciated real estate, or other marketable assets, and then use that property (through sale or management of the property) to create an income payment that can continue through the life of the Donor(s) and up to twenty (20) years to third parties. The funding of the trust typically creates an immediate charitable tax deduction, and long-term capital gain property sold through the trust avoids imposition of upfront capital gains. During the term of the trust, income payments are payable to named parties in either fixed or annually adjustable amounts, and upon the termination of the trust’s term, the remainder of the trust principal is transferred to a named ministry, charity or a donor advised fund chosen by the donor. A Charitable Remainder Trust is an excellent alternative to an outright sale of appreciated securities, real estate or other marketable assets due to its charitable and capital gain tax benefits, but it can also be funded with cash to achieve a charitable tax deduction.
What is a Donor Advised Fund?
A Donor Advised Fund is a flexible giving device that can accept tax-deductible charitable contributions of cash, securities, appreciated real estate, or other marketable assets, and then distribute funds immediately or over time to charitable 501(c)(3) organizations with the donor’s input. Assemblies of God Foundation acts as custodian of the donor advised fund and distributes income and/or principal with the advice of named advisors to the fund. Individuals, couples families and organizations can use a donor advised fund to create an immediate charitable tax deduction while creating a pool of funds to be given away immediately, over time, or someday in the future. A Donor Advised Fund should be considered by those individuals or families who are interested in avoiding the regulations and complexities surrounding private foundations. A Donor Advised Fund can also be designed to act as the charitable recipient of distributions from revocable or tax-beneficial irrevocable charitable trusts.
What is Planned Giving?
Planned Giving is a process that integrates the personal, financial, and estate planning goals of donors with their desire to create current or future financial gifts for charitable purposes. Some planned gift options, like bequests, are very straightforward and are made by a designation in a Will or Trust. Others, like Charitable Gift Annuities, Charitable Remainder Trusts, and Charitable Lead Trusts require additional planning and are designed to create present or future income streams for the donor or other beneficiaries, tax savings for the donor, and a legacy gift for ministries or charities.