The Smart Giver
Robert D. Cavanaugh, CLU
Are you a member of a church that’s looking for a unique fund raising idea to complete a current project? Would you like to learn about an idea that can bring in tens of thousands of dollars quickly? As supposed to simply asking donors to dig deeper in their pockets. In the next few minutes, you're going to learn that about a plotting technique that provides tax and increased income benefits to the donor.
There are three steps to implement your project. First, select an insurance agent, this idea involves annuities, which can only be placed by a license insurance agent. I would suggest selecting and agent from outside of the church. Look for the CLU, CHFC or CFP professional designations. Second, communicate the plan to your membership prospects are senior members your church age 70 year older. The older the donor is, the greater their benefit.
First, an outline of how this planning technique works, a person donates cash or how they appreciate of those assets. If an asset is donated, you're church shares a property, the church pays no tax on the sales since the church is tax exempt. The donation is an exchange for an agreement to pay the donor of fixed percentage of the amount contributed for the rest of their life. A high percentage of the payout are not taxed to the donor, the older the person the higher the payout the amount not set you to tax.
The donor also receives and income tax reduction which can be spread out over six years if necessary, here’s an example of the income tax reduction at various ages based on a $50,000.00 gift. The combination of the tax exclusion and the tax deduction increases the effective yield. Here is an example of the increase in effective yield compared to a CD pan for per-set.
Third, the funding agreement your church uses a portion of the donation to buy a single premium immediate annuity on the life of each donor for the amount of its payout obligation. A one-page agreement, which complies for the loss of your state, outlines each party’s obligations. Your church keeps the difference and can immediately fund the ministry or add it to the indulgent fund and then each month your church receives cheques from the insurance company for all the donors and then issues a cheque to each donor for their payout amount. The process is very simple; the net result is that the donor receives a guaranteed life income, an income tax reduction and then an increased yield.
And your church receives immediate cash, here’s how the numbers could workout. Let's assumed that there are 500 members in your church and this idea applies to just 2% or 10 people. Further assumed that the average donation is $25,000.00 this would bring in $250,000.00. The cost of the immediate annuities will vary of age, unless say this cost is a $150,000.00 that puts a $100,000.00 immediately into to your churches pocket. This is Bob Cavanaugh with the Smart Giver and that’s one idea how your church can raise a six figure number in 90 days.
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