Planned Giving

Planning Ahead for Charitable Giving

“How do I know how prepared I am for charitable giving?” “What are the key steps I need to take to make sure I am ready to give my gift to the Kingdom when the time comes?” “How do I know when the best time to give is?”

These questions, and more, are just a few examples of what we at WaterStone are here to help you answer.

With the implications of the Coronavirus continuing to surge throughout the globe, we believe it is now more important than ever to give back to those in need. While these are challenging times for everyone, we take heart in knowing that God calls us to be courageous and faithful, trusting in Him through all circumstances.

“Have I not commanded you? Be strong and courageous. Do not be afraid; do not be discouraged, for the Lord your God will be with you wherever you go.” – Joshua 1:9

As we close out another month of 2021, we want to encourage you to begin shifting your focus to how you can further advance the Kingdom during the remaining months of this year and in the years to come. To do this, our experts at WaterStone have put together some helpful tips to guide and prepare you for your charitable gifts and endeavors.

1) Determine Your Goals for Giving

It is important to have a clear understanding of what your goals are when it comes to charitable giving. Whether your goal is to save money on taxes, donate a certain amount of money to charity each year, or establish an endowment fund, understanding the reason behind your giving will allow our experts to guide you towards a Giving Solution that will best meet your needs and maximize these efforts.

2) Identify Your Assets & Giving Potential

Knowing what your most valuable assets are and where they stem from will be a huge benefit when it comes time for your charitable deductions. In our experience, we have found that many individuals believe cash and marketable securities are the only items they can give; however, some of the most extraordinary gifts lie “below the surface” of traditional assets. Gifts such as real estate, agriculture, life insurance, and more can all be fully or partially donated for charitable deductions and Kingdom advancement. If you’re unsure of what your most influential assets are, our experts will come alongside you to help you discover where your greatest giving potential comes from. View our Asset Representation Chart for more information.

3) Know Your Giving Solutions

Giving your assets to the Kingdom isn’t always a “one size fits all” method of donating; It is important to know which giving solution(s) best aligns with your charitable giving goals. These giving solutions include contributing to a Giving Fund, a Charitable Pooled Trust, and/or a Charitable Remainder Trust, to name a few. Each giving solution has its own set of benefits that help ensure your gift reaches its maximum potential while providing you with a charitable tax deduction.

  • Giving Fund: Giving Funds, often referred to as Donor Advised Funds, can accept cash or appreciated assets such as securities, real estate, business interests, oil & gas, or agricultural commodities. Through a Giving Fund, donors can recommend grants to preferred charities immediately or over a period of time, and they will receive a fair market value charitable tax deduction.
  • Charitable Pooled Trust: Charitable Pooled Trusts (CPTs) can accept gifts of cash or securities. Donors will receive a historically high immediate tax deduction for the value that the charity will receive in the future and will also receive variable income payments for the lifetime of their designated income beneficiaries. When the trust matures, 90% of the remainder will pass onto the donor’s Giving Fund, while the other 10% will pass onto WaterStone’s Kingdom Advancement Fund.
  • Charitable Remainder Trust: Charitable Remainder Trusts (CRTs) are able to accept gifts of cash, securities, real estate, or other appreciated assets. Similar to CPTs, donors will receive an immediate tax deduction for the value that the charity will receive in the future, while also allowing designated income beneficiaries to receive a lifetime or fixed-term income stream from the trust. The remainder of the funds pass to the donor’s Giving Fund where they can be granted to preferred charities.

For more on the different giving solutions, view our helpful Guide to Giving chart explaining which assets can be given to different giving solutions.

4) Understand & Develop Your Timeline

Not all gifts have the same timeline. For example, a gift of real estate may require more processing time than a gift of marketable securities, due to the complexity of the asset. Once a gift is fully processed into your selected giving solution(s), you will be able to develop a custom timeline that allows you to give on your own schedule. We recommend speaking with our Giving Strategists to understand the timeline for the gift you are donating to ensure you have enough time to prepare for end-of-year deductions.

Charitable giving comes in all shapes and sizes and can at times be extremely complex. At WaterStone, we believe that segmenting the process into individual steps allows you to better manage each part of the process to effectively achieve your desired charitable giving goal. Contact our team of experts for more information on how to maximize your gift for the Kingdom.

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