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Gift Planning
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Jeff Schacherer, Director
Katie Litz, Coordinator

Financial and Estate Planning Services
Legacy@awana.org
(800)22-AWANA, option 1
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Awana International
Founder Circle

Deferred Gifts

Wills

Your Christian will is a final testimony of your life. It is your opportunity to share from God's bountiful blessings with those loved ones and organizations that are important to you. We hope you'll consider including a gift to Awana International in your will.

How It Works:
1. Choose what to give.
Pick from one of these three options.

  • A specific bequest leaves a specified dollar amount or a fixed percentage of your estate to Awana International.
  • A residuary bequest first gives the amounts you specify to the individuals you choose, and leaves the balance to Awana International.
  • A contingent bequest gives Awana International the portion of your estate designated for another person if that person predeceases you.

Even without drawing a whole new will, a bequest can be provided simply by adding a codicil to an existing will. In any event, an attorney's guidance is recommended. Illustrative language of bequests for various uses is available to you. Simply call us at (800) 22-AWANA, option 1.

2. Decide how you would like Awana to use your gift.
Choose from one of these three options.

  • An unrestricted bequest allows us to use the assets in the most beneficial way.
  • A restricted bequest allows you to specify how we are to use the funds. Contact us in advance to be certain your intent can be fulfilled.
  • An endowed bequest allows you to restrict the principal of your gift so we can use only a small portion each year, typically allowing the fund to last forever.

3. Meet with your estate planning attorney.
Whether you need to create a will or simply update an old document, you'll want to seek the help of an estate planning attorney.
Called a charitable bequest, this type of gift offers these main benefits:

  • Simplicity. Just a few sentences in your will or trust are all that is needed. The official legal bequest language for Awana International is: "I, [name], of [city, state, ZIP], give, devise and bequeath to Awana International [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
  • Flexibility. Because you are not actually making a gift until after your lifetime, you can change your mind at any time.
  • Versatility. You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of your estate to us.
  • Tax Relief. If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift's full value.

4. Let us know of your plans.
Please contact Jeff Schacherer, Director of Financial & Estate Planning Services at (800)222-9262, Option 1 or (630) 540-4556 or jeffs@awana.org to let us know when you have made plans for such a gift. We would love the opportunity to thank you for your generous act. We are happy to honor your wishes regarding anonymity.

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Charitable Gift Annuity

With a charitable gift annuity, you agree to make a donation of cash, stocks or other assets to Awana Clubs International. In return, we contractually agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

In addition to providing a gift to Awana and receiving fixed payments for life, you also receive these benefits:

  • Your initial gift is partially income taxdeductible.
  • Your charitable gift annuity payments are partially income taxfree throughout your estimated life expectancy.
  • Your payments are not affected by ups and downs in the economy.
  • The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.
  • If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.

For example - Bill, age 70, established a $20,000 charitable gift annuity. Based on his age, he was able to receive an annuity rate of 5.8 percent. This means that we will pay him $1,160 each year for the remainder of his life, of which $815 is tax-free to him throughout his life expectancy. He'll also receive a charitable deduction of $7,352 if he itemizes on his income taxes (assumes annual payments and a 3 percent charitable midterm federal rate). After his lifetime, the remaining amount is used to support our mission.

Deferred Charitable Gift Annuity

If You Don't Need Extra Income Right Now...
If you are not yet retired, a deferred charitable gift annuity may be the right charitable gift for you. You'll receive the same benefits as regular gift annuities but with considerably higher rates.

Deferred Gift Annuity: How It Works
You make the contribution to us now, securing a current income tax charitable deduction. Awana International provides you with fixed payments for life starting at any date you select. This is especially advantageous if your tax bracket is higher now than it will be later when you retire. The rate depends on your age now and your age when the payments will begin. Because payments are deferred, the rate is considerably higher than with an immediate gift annuity. Your charitable deduction is larger, too, when you choose to defer the start of your payments. In addition, for many people, contributions to IRAs, 401(k) plans and other retirement plans are limited. The deferred payment gift annuity is a good way to provide the additional retirement income you desire.

To learn more about this way to support Awana International, please contact Jeff Schacherer, Director of Financial & Estate Planning Services at 1-800-22-AWANA, option 1, or by calling 630-540-4556 or email jeffs@awana.org.

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Charitable Remainder Trust

With a charitable remainder trust, you can receive income each year for the rest of your life from assets you give to the trust you create. Your income can be either variable or a fixed amount. After your lifetime, the balance in the trust goes to the charities of your choice.

Some possible benefits include a partial charitable income tax deduction, potential for increased income, up-front capital gains tax avoidance, and professional management of trust assets available.

3 Ways to Fund Your Charitable Trust
A charitable remainder trust can be funded with a variety of assets—it's up to you. While some assets are easier to give to your charitable trust, you'll want to consider other important issues such as asset availability and capital gains tax savings. Here's a rundown of three popular possibilities and their effects.

  1. Cash. Writing a check is the least complicated way to fund the trust. The trustee can then invest the cash in a diversified portfolio of securities.
  2. Stock. Stock that is currently worth more than you paid for it and that you've owned for more than one year is an ideal funding choice. This stock is an especially attractive choice if it now produces only a modest income. Contributing low-yield stock can immediately boost your cash flow by means of a higher payout from the trust. You escape up-front tax on the stock's capital gain and receive a substantial income tax charitable deduction. Plus, these assets are easily transferred to the trust.
  3. Real estate. You can contribute any type of appreciated real estate you've owned for more than one year, provided it's unmortgaged, and realize benefits similar to those for a stock gift. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts (i.e., a flip unitrust). Your estate planning attorney who will draft your trust can give you more details.

There are two types of charitable remainder trusts:

1. The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
Example: Millie, 76, owns several stocks worth $100,000 that currently pay dividends of only $2,000 a year. She decides to give these stocks to a charitable remainder annuity trust. She will qualify for a partial income tax deduction of $57,542,1 receive $5,000 a year and provide a future gift to ministries like Awana.

2. The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Example: Stewart, 65, was looking for a gift vehicle that keeps up with inflation and provides extra income during retirement. He decides to give $1 million to a unitrust that will pay him 6 percent of the trust assets each year. Larry will also qualify for a partial income tax deduction of $394,8801 and provide a future gift to a qualified charitable organization.

To learn more about this way to support Awana International, please contact Jeff Schacherer, Director of Financial & Estate Planning Services at 1-800-22-AWANA, option 1, or by calling 630-540-4556 or email jeffs@awana.org.

1Based on annual payments and a 3 percent charitable midterm federal rate.

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Charitable Lead Trusts

You give assets to a trust that pays Awana International an income for a number of years, which you choose. The longer the length of time, the better the gift tax savings for you. When the term is up, the remaining trust assets go to your family or other beneficiaries you select.

This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal tax cost. This type of charitable lead trust (also called a nongrantor, or family lead, trust) is especially appealing to Awana supporters who are financially comfortable enough that they can forgo investment income on some assets.

A charitable lead trust can make payments in one of two ways: a charitable lead annuity trust pays a fixed amount each year to Awana International, whereas a charitable lead unitrust (the less common type) pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, the payments to our organization go up as well. On the other hand, if the assets decrease in value, so do our payments.

To learn more about this way to support Awana International, please contact Jeff Schacherer, Director of Financial & Estate Planning Services at 1-800-22-AWANA, option 1, or by calling 630-540-4556 or email jeffs@awana.org.

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Life Insurance

There are several ways you can use life insurance as the basis for a charitable gift.

Making Awana International a Beneficiary of Your Life Insurance Policy
You may wish to make the ministry the beneficiary (or a contingent beneficiary) of a life insurance policy as a way to make a sizeable future gift. You retain lifetime ownership of the policy, keeping the right to cash it in, borrow against it, and change the beneficiary. A gift of this nature is treated much like a bequest made through your will. Because you retain the ownership of your asset (the policy), you will not receive an income tax charitable deduction for this future gift or for your premium payments during your lifetime. The policy's proceeds will be included in your gross estate, and your estate can take an estate tax charitable deduction.

Making a Gift of Your Policy
You may wish to transfer ownership of a policy to Awana, or purchase a new policy with the organization as owner and beneficiary. If you make the ministry the owner and beneficiary of a policy, you are entitled to certain tax advantages.

Wealth Replacement Using Life Insurance
A donor may make a current gift to Awana and receive a charitable tax deduction. At the same time, the donor may purchase life insurance to replace the donated amount or perhaps, the amount after estate tax that the beneficiaries would have received. Depending on the circumstances, the charitable tax savings and any life income resulting from the gift may defray the cost of the wealth replacement insurance premiums.

Creating a Life Insurance Trust
You may want to set up an Irrevocable Life Insurance Trust (ILIT). An ILIT removes the life insurance from your estate to help reduce estate tax while providing other benefits. For example, upon one's death, the proceeds of the life insurance policy may remain in the trust to provide income for the surviving spouse, but stays outside of the spouse's estate for estate tax purposes. Or, the trust could be used to distribute proceeds to children of a previous marriage. Although ILITs can be expensive and more complicated than owning life insurance directly, they may be an attractive option in certain situations. There can be significant advantages to using retirement assets as a charitable gift. Please contact us to discuss your unique circumstances. As with all matters concerning estate planning, please consult your estate and tax specialists.

To learn more about this way to support Awana International, please contact Jeff Schacherer, Director of Financial & Estate Planning Services at 1-800-22-AWANA, option 1, or by calling 630-540-4556 or email jeffs@awana.org.

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Retirement Plans

Want to get the most value from your nest egg, protect your heirs from heavy taxes and make your mark at our organization? Consider leaving a portion of your retirement plan assets to us.

If you die with retirement plan assets in your estate, those assets are subject to income taxes. This can reduce the amount that normally would be passed to heirs by up to 35 percent. In contrast, as a qualified ministry, we are tax-exempt and eligible to receive the full amount and bypass any federal taxes. Income taxes can be avoided or reduced through a carefully planned charitable gift. Consider these gift options:

  • Designate Awana Clubs International as the primary beneficiary for a percentage (1 to 100 percent) of your retirement plan assets.
  • Designate a specific amount to be paid to us before the remainder is divided among family beneficiaries.
  • Make us the contingent beneficiary to receive the balance only if your loved one, as primary beneficiary, doesn't survive you.

Leaving retirement plan assets to Awana Clubs International shields your heirs from taxes on the retirement assets and frees you to give them other assets that are not as heavily taxed.

To learn more about this way to support Awana International, please contact Jeff Schacherer, Director of Financial & Estate Planning Services at 1-800-22-AWANA, option 1, or by calling 630-540-4556 or email jeffs@awana.org.

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