What is Planned Giving?

Planned Giving refers to gifts which are arranged currently but paid in the future. These gifts frequently take the form of a bequest (donation) in a will or through other arrangements within estate and financial plans.

Planned Giving is an integral step in estate planning. Most of our individual wealth is in the form of non-cash assets which may include: real estate, stocks and bonds, life insurance policies, IRAs, art
collections, etc.

How can I participate in Planned Giving at MVPC?

There are two primary types of planned gifts:

  1. Gifts you plan for now, but are made at the time of your death
    • Gifts from your will or trust: You can easily add the MVPC Foundation (or any other charity) to your planned giving. Simply ask your attorney to amend your will or trust to leave a certain amount, or certain percentage, or specific assets to the charity at the time of your death.
    • Retirement accounts (like IRA’s, 401ks, 403bs, etc.): Many people choose to make charities a beneficiary of their retirement accounts. This is because charities don’t ever pay taxes on retirement account distributions. Your heirs, on the other hand, will be taxed on all distributions they receive from the inherited retirement account. Implementing the decision to leave some or all of your retirement account is one of the easiest things to do: simply update the beneficiary designation on your account to include the MVPC Foundation or other charity.
    • Life insurance policies: You can make the MVPC Foundation the irrevocable owner and beneficiary of a paid up life insurance policy. A charitable tax deduction can be claimed in the year the donation is made equal to the cash surrender value of the policy.
    • Real Estate: For many people real estate holdings comprise the majority of their net worth. The MVPC Foundation accepts most all gifts of land, rental property, and personal real estate.
  2. Gifts you make now, and a portion of the value is returned to you in the form of regular income payments. At the time of your death, the income ceases and the charity retains the remaining amount.
    • Charitable remainder trusts: CRT’s are appropriate for members who hold highly appreciated assets such as real estate and securities. CRT’s are extremely tax efficient and could provide other financial benefits such as annual income to the donor. At the end of the Trust’s term the remaining assets revert to a charity such as the MVPC Foundation. There are many different types of CRTs available to fit a donor’s goals.
    • Thinking of gifting your home? Providing housing for pastors and ministry staff in the Lamorinda area is one of the key goals of the MVPC Foundation. You can donate your home through a bequest, or you can create a Life Estate. Under the Life Estate process you can gift your home to the MVPC Foundation while retaining the right to use the property during your lifetime. The
      tax benefits of this process can also be quite notable.
  3. Should you have any questions about TEN TALENTS FELLOWSHIP and Planned Giving at MVPC please feel free to contact any of the Trustees of the MVPC Foundation.