When you donate a capital sum to GCM Ministries to purchase an annuity, GCM Ministries in turn guarantees you regular payments at a very attractive rate for the rest of your life. All, or a large portion, of your annuity income is tax exempt and you will receive a tax-deductible receipt for at least 20 per cent of the original annuity amount.
You can donate various kinds of property by various means. Some of the greatest tax benefits will be available to you if you give stocks, mutual funds, and bonds directly to your chosen charity. This process eliminates taxable capital gains on the donation and provides a full market value tax receipt.
Retirement assets provide for you when your income declines at retirement. Many people discover they have accumulated more funds than they will use. Excess retirement funds can turn into another tax liability, especially if these funds are in a tax sheltered registered plan.
When you pass away, these funds become part of your estate and are taxable. You can offset the taxes if the funds are given to a charitable organization like Great Commission Media Ministries (GCM Ministries). You can also now name a charity as a second beneficiary of your registered accounts, avoiding estate implications.
You can donate an existing policy or purchase a new policy, and then choose GCM Ministries as the owner and beneficiary. You can maintain that policy by paying the premiums and receiving a donation receipt annually for the premiums paid. Or you could name GCM Ministries as a beneficiary or co-beneficiary and, at your passing, your estate would receive a donation receipt to be used as a tax credit.
You could also donate an existing policy that you no longer need; you would continue to make the payments and receive a tax credit, similar to one of the above options. If that policy has cash surrender value, the charity could alternatively cash it in and issue you a donation receipt.
Donating real estate offers significant tax advantages. When real estate that has increased in value is sold, tax will have to be paid on the capital gains if the property is not your principle residence.
By gifting the property, a donation receipt is generated and the tax credit would offset additional tax and provide a net tax saving. If the gift is your principle residence, there is no capital gains tax and the donation receipt can be used to offset other taxes.
You can also gift real estate and maintain income from it or reside in it for an agreed amount of time or until your passing. Real estate can also be left as a bequest in your Will.
A Will is the cornerstone of any financial plan, and is the last communication you have with your family. It is a time to confirm to them and others what your priorities and values in life were.
A gift to the ministry of GCM Ministries designated through your Will enables you to honor the Lord at the end of your life as you have throughout your life. That gift will result in a tax credit, defraying taxes owing on your estate.
As the Lord has blessed you with increased assets, you can designate in your Will a percentage of your assets to go to ministry as well as to care for your family.
Each of these planned giving options needs careful attention and prayerful consideration. If you would like to talk to a professional financial advisor, access valuable planning tools, or learn more about how your planned giving can support the ministries of GCM Ministries, please contact:
GCM Ministries CEO
We would be pleased to help you find the right balance in planning your legacy.