Legacy Gifts
MAKING A LASTING DIFFERENCE THROUGH A WILL, TRUST, OR OTHER KIND OF GIFT.
You may want to make a lasting gift to Children of Promise. THANK YOU!
At Children of Promise, we are not attorneys or licensed financial planners. We do have training in planned giving and can give you helpful information, and information to take to your professionals.
If you only want the information that you need to take your attorney, view the information below. If you want more information, view the options below.
CHILDREN OF PROMISE, INC.
PO OFFICE 2316 ANDERSON IN 46018
PHYSICAL ADDRESS IS 1215 E 7TH STREET ANDERSON IN 46012
EIN 36-4490602 (This is a federal identification number unique to Children of Promise, in Anderson, IN. There are other groups who use the same name.)
Phone Number: 765-648-2190
THINGS TO CONSIDER
THERE IS MORE TO CONSIDER THAN SIMPLY THE GIFT!
We are thankful that you are considering having your love for children to live on through Children of Promise. You likely have family and perhaps others you care for too. Of course, you should talk to a trusted financial advisor as you make your decisions. Here are a few things to consider:
TAXES
Consider the best way to leave your estate to family or others you love. Many people would like to make a gift, but want to leave most of their estate to family. Consider making your gift to Children of Promise from assets that would be taxed at a high rate. Leave those assets that will not be taxed or taxed a lower rate to those you love.
Children of Promise is a 501c3. This means we are tax exempt. The gift may become an estate deduction if needed. Your heirs can receive gifts that are taxed at a lower rate which benefits them the most. Talk with a financial advisor or your attorney about the best way to make a gift. You can ask them to notify Children of Promise if they want more information.
LIFE INSURANCE
We sometimes encourage people to consider another type of gift rather than life insurance. Generally, proceeds to the beneficiary from life insurance are not taxed. So leaving it to those you love is far better for them. You can leave the same amount to Children of Promise from another source that might be taxed when distributed to those you love.
TRANSFERRING WEALTH IN A WISE WAY
The greatest transfer of wealth in history is happening right now. We recommend talking to your attorney or financial planner about the best means to make gifts out of your will or estate plan. Taxes are one consideration. Your values are considered. The ability of the people you love to handle wealth is an important consideration. This is sometimes referred to as their financial age of accountability. Professionals can help you determine the best way to manage distribution.
SOMETIMES AN ESTATE GIFT IS BEST
People have contacted Children of Promise and told us they desire to support Children of Promise. Sometimes an estate gift is the best choice. One example, Mary is a widow and 65 years old. She has $500,000 in assets. But Mary does not know if she has just a few years left or if she will live to 100 years old. She continues to make small gifts to Children of Promise and remembers Children of Promise in her will. In that way, she keeps assets she may need and expresses her love for helping children.
GIFT OPTIONS
Most make a gift to Children of Promise undesignated. They want assets to be used where they are most needed. This can be through immediate gifts, or from your will or estate plan.
You may decide to designate a gift to support a specific country, or need, or project. Please call and talk with us to be sure you know all of the options, and receive any information you need for your decision. There are sometimes secondary issues you should consider.
Here are a few examples: Emergency funds (such as medical or disaster relief), unsponsored children funds, mosquito nets fund, birthday and holiday gifts.
You may decide to make a lasting gift to the Sidney & Jean Ratleff Endowment. (You can read the section about endowments to learn more.)
OTHER WAYS TO MAKE A SIGNIFICANT GIFT NOW OR AN ESTATE GIFT.
A GIFT FROM YOUR QUALIFIED IRA CAN HAVE BIG TAX ADVANTAGES NOW OR TO YOU ESTATE
If you are over 70 ½ you may wish to make a gift directly from your qualified IRA to Children of Promise. This can have tax advantages. The federal government allows you to make gifts directly from your IRA. There may be great benefits for you or your estate. It must be done properly, talk to us or your administrator. This can allow you to make a gift to Children of Promise, more to your loved ones, and pay fewer taxes. Many consider this the best way to make a gift.
For example, many states allow no deduction, or a small one, for charitable giving. If the gift is done properly it is not considered income to be taxed by the state. There could be federal tax advantages too. It is possible in lowering your gross adjusted income that there will be more tax benefits.
Distributions must be made directly to the Children of Promise, not to the owner or beneficiary. All distribution checks need to be made payable to Children of promise or they will be counted as taxable distributions. This must be done properly; your IRA administrator or tax advisor can help you.
PAYABLE ON DEATH (POD) AND TRANSFER ON DEATH (TOD)
ACCOUNTS ARE A GREAT WAY TO HELP THOSE YOU LOVE AS WELL AS LEAVE A GIFT OT CHILDREN OF PROMISE.
Payable on death is easy and has many advantages. It is a simple form at the bank. Designating a beneficiary in your POD account costs nothing.
When you pass away your bank account is automatically given to who you name when they provide proof of death – the death certificate. (Much like a beneficiary in life insurance.) It is easy for the beneficiary to receive funds. The bank needs nothing from the probate court. If you have a joint account this happens when both account holders pass away.
The POD beneficiary has no rights to the money while you are alive. It changes nothing for you. It is still your account; the beneficiary cannot use the money in any way. They cannot receive information about the account. You can change the account, close it out, it still operates the same.
There is no limit to how much money you can leave this way.
It does not go through probate which can save time and money for your estate.
If you are going to leave a gift to someone, or to Children of Promise this is the added gift of making it easy and fast to receive the funds.
POD is known by different names. Totten trust, beneficiary account, tentative trust, ITF account (In Trust For), and more. As you describe what you wish to do your bank will inform you what they call it.
It does not automatically avoid responsibilities to creditors or a spouse. (Even if it is in your name only) Claims can be made.
You cannot name an alternative or secondary beneficiary. For example, if the beneficiary for POD dies, you cannot name next in line. You would need to fill a new form out for a new beneficiary.
Transfer of Death (TOD) The same can be done with your stocks and securities. (In all but 2 states.) Again, it is much like naming a beneficiary on an insurance policy.
GIFTS OF APPRECIATED STOCKS
Gifts of appreciated stocks are a great way to make a gift. Children of Promise receives the gift tax free, and you are receiving the value of the gift and escape capital gains taxes.
Appreciated stocks are stocks whose value is more than your original purchase price. Your broker or financial advisor can help you transfer them properly for tax purposes.
A stock that is worth less than you initially paid for is often best sold and then make a cash gift. There may tax deductions available for your loss.
GIFTS OF PROPERTY
Gifts of property can have some advantages for you and your family. For example, a family has children who all have their own homes. You wish to make a gift, so leave the home to Children of Promise. We deal with the issue of selling the home taking that burden off of the family.
Property can include other gifts. Examples: Automobile, gifts of art, a cottage, or boat.
All gifts of property go through a gift acceptance committee before acceptance.
LIFE INSURANCE
We sometimes encourage people to consider another type of gift rather than life insurance. Generally, proceeds to the beneficiary from life insurance are not taxed. So leaving it to those you love is far better for them. You can leave the same amount to Children of Promise from another source that might be taxed when distributed to those you love.
INCOME PRODUCING GIFTS
Do you wish to make a gift yet want an income stream? Income producing gifts provide an income stream, have tax advantages, and you have the joy of giving. A wide variety of trust can do this as well as a charitable gift annuity. These gifts are irrevocable. Call Children of Promise and talk to us for more details.
ARE THERE OTHER KINDS OF GIFTS?
Of course, simply call Children of Promise and ask for Kirk Bookout. You want to make a difference; we want to help you to do this in the best way for your situation.
As always, there is never any pressure. You can be assured that we will talk with you with respect while being sensitive to your needs. The Children of Promise Donor Bill of Rights can be reached by clicking this link: <insert link>
ENDOWMENTS
WHAT IS AN ENDOWMENT?
An endowment is a fund that is built over a long period of time. The endowment is structured so that the principal or base amount is kept intact while the investment income is available for ministry. This means that the gifts to an endowment will provide the donor with a way to provide continuous income from generation to generation. Their legacy of support lives on.
The Sidney & Jean Ratzlaff Johnson Endowment
The Sidney & Jean Ratzlaff Johnson Endowment is named in honor of the co-founders of Children of Promise. The long term vision of this endowment is to provide perpetual support for the cause of Children of Promise that will eventually underwrite all necessary operational costs. Our dream is to free support dollars to go directly to the children’s care.
While the endowment is named after our founders, your endowment gift can be named in honor or memory of people you love.
GIVING TO THE ENDOWMENT
Do you wish to make a lasting difference through a gift to Children of Promise?
You can have confidence when you talk with Children of Promise. The conversation will be comfortable and without pressure.
Contact Kirk Bookout
give@childrenofpromise.global
+1 (765) 648-2190
WAYS TO GIVE
CASH – You can make an immediate gift of cash or other assets at any time. Your gift will join many others in continuing the good work of Children of Promise for generations to come.
WILL & ESTATE GIFTS – Through your will or living trust, your support for Children of Promise lives on. Could this be you? Twenty-seven years ago she passed away. She left a gift for an endowment to feed children. Although gone for 27 years, today she fed 54 children.
IRA/RETIREMENT PLANS – For many, the best way to make a charitable bequest is through a retirement plan because it has the biggest tax savings to the estate. Talk to us for more information.
GIFTS OF STOCKS OR OTHER ASSETS –The way these gifts are structured can have a very positive effect on taxes and impact for family members left behind. Talk to us for more details.
PAYABLE ON DEATH (POD) – These accounts are easy to create and make a significant difference.
INCOME PRODUCING GIFTS – These are irrevocable gifts that produce income for you while you live. Many have tax advantages, and often a portion of income is tax-free.
We want you to know there are a variety of types of gifts and ways to give that are best for you, have tax advantages, and provide for your family. We will provide information that will be helpful to you as you prepare to meet your financial advisor or lawyer. Our Development Director, Kirk Bookout, has training and experience in these areas.
HOW IS THE ENDOWMENT PROTECTED AND INVESTED?
The endowment is invested through the Church of God Foundation. While the Foundation manages the endowment, it is owned by Children of Promise and investment decisions reside with Children of Promise.
Children of Promise goes through an annual audit which is reported to the Children of Promise Board of Directors in person by an auditor.
Children of Promise is a member of two accountability organizations.
The Evangelical Council for Financial Accountability and is a highly respected Christian accountability organization. You can read more about ECFA at www.ecfa.org.
Charity Navigator is a highly respected organization that rates not for profits on a number of financial issues. You can read more about Charity Navigator at www.charitynavigator.org
ABOUT OUR FOUNDERS
Sidney and Jean Ratzlaff Johnson have made a significant impact on the world. Sidney was born in a sharecropper’s family. Jean was raised in a pastor’s family in Western Pennsylvania. They met at Anderson College in Anderson, Indiana. Jean taught elementary school in Anderson, Indiana, following college graduation, while Sidney studied and graduated from the Anderson School of Theology.
Sidney and Jean began a lifetime of missionary service in 1955. They served The Shelter Girls Home in Cuttack, India (1955-73), Thailand (1973-86), and served as the Missionary Board’s liaison for Asia. In 1986, Sidney became Asian Administrator, and Jean worked with the women of the church in Asia.
Before 1975, the Church of God had a presence in six Asian countries. After 1975, the Asian church opened work in an additional 12 countries under the Johnsons’ leadership.
During their last administrative visit with the Asian leaders, the Johnsons asked, “How can we help you?” Their reply: “Help our children.” Out of that question, the burden and vision for Children of Promise was born.
In 1992, Sidney and Jean co-founded Children of Promise. Jean led as Director, and Sidney volunteered full-time through 2003. Children of Promise began in cooperation with Women of the Church of God and the Missionary Board of the Church of God.
Children of Promise has grown to the current work in 30 countries with a vision to reach other countries.
The Johnsons continue to champion the cause of Christ for Church of God mission work, particularly the work of the Church of God in Asia. Their work and influence is profound through all the lives that have been touched in the name of Christ.
