Charitable Giving

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Charitable Giving

• A strategy to fulfill Gods call to respond
  joyfully to his grace!

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Personal Finance Workshops

• Budgeting and Debt Reduction
• Saving and Investing
• Personal Financial Management
• Stewardship
• Charitable Giving

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Our time today

• Start with stewardship, financial and faith goals
• Understand the concept of charitable giving
• Review some of the tools
• Explore educational strategies for your
  congregation

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God owns everything

• Stewardship principles
• God wants us to use his resources wisely
• No one can serve two masters
• God is our source and is in control of all events
• Give to God first

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Spend time with God

• Be content
• Proverbs 30 7-9
• Give yourself
• Romans 12 1-3
• Grow in relationship and loyalty with God
• Ephesians 5 10
• Grow in relationship and loyalty with family
• Ephesians 5 22 64
• Grow in relationship and loyalty with others
• 1 John 1 7
• Grow in relationship and loyalty to church
  community
• Galatians 522-26

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Why set financial goals?

• Scripture encourages us to do so
• Phil 312 14 2Cor. 5 8 10
• Provide direction and purpose
• Crystallize our thinking
• Provide personal motivation
• Become statements of our understanding of Gods
  will for us

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Stewards view of a financial plan

• A personal financial plan allows us to leave
  behind a testimony of Gods faithfulness that
  will inspire future generations

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Adding charitable giving to plan

• Allows us to honor God with our income and
  material goods
• While also
• Providing for our family
• Allowing us to achieve family goals that require
  financial strength

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Faith Goal

• An objective toward which you believe God wants
  you to move
• Your present understanding of Gods will for you
• You will grow as you experience the results of
  your obedience and the power of God displayed in
  your life

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Eternal journey

• Our lives have two phases
• Today
• Eternity
• Charitable giving is an eternal strategy
• Reflects Gods power in your life

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Charitable giving taxes

• Charitable giving is a strategy, which allows
  us to transfer property that is given favorable
  treatment in the Income Tax Act.

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Tax Consequences

• Charitable gifts
• qualify for generous tax credits under the Income
  Tax Act
• reduce the real cost of giving the gift
• Each situation is different
• consider tax and estate planning consequences
• contact a qualified tax advisor about the tax
  impact of your planned gift

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Tax Credits and Charitable Gifts How does it
work?

• Charitable donation today 50,000
• Tax credit on donation_at_ 45 22,500
• (Federal and Provincial combined)
• Tax savings 22,500
• Note To fully deduct this donation in one
  year, that years net income would need to be
  67,000 or higher (due to 75 limit)

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Tax Credits through Bequests Gifts given
through your will

• Benefits
• Tax Credit 100 of net income in the terminal
  tax return 100 of the previous years net
  income
• No capital gains tax on gifts in the form of most
  publicly traded shares

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Planned Giving Options

• Present donate cash, investments, real estate
  or other property during your lifetime
• Future gifts are planned today and take effect
  at death
• Bequest in your will, direct part of your
  estate to be given to a church/charity

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Types of Charitable Gifts

• Gifts to the Crown
• Gifts in kind
• Gifts of life insurance
• Purchasing an annuity from a charity
• Charitable insured annuity
• Charitable remainder trusts

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Some real life examples

• Flexibility in how you give can be done
  anonymously
• Turning a tax liability into a charitable gift
• Using excess retirement income to fund a gift

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Bequests Gifts given through your will

• Considerations
• All gifts form part of the estate subject to
  probate fees
• Keep your will up to date!
• Review the estates financial position
• Claims against the estate take precedence over
  any bequest

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Respect for Donor Wishes

• Designate how your gift will be managed and used
• Creating an endowment - specify the principal be
  invested in perpetuity and only the income spent
• Designate the purpose for the gift used
• Or allow the money to be used where need is the
  greatest

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Suggestions for the Gift Giver...

• Take advantage of charitable donation limits
• Up to 75 of net income may be used as a
  charitable gift
• 100 of net income in the year of death may be
  used as a charitable gift
• Save excess receipts, they can be used in any of
  the following 5 years
• Combine two or more years of receipts into one

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Suggestions for the Gift Giver...

• Donations under 200 receive 24 tax credit
• Donations over 200 receive 46 to 50 tax
  credit
• If both spouses give, combine receipts and claim
  against higher income
• Once over 200, give additionally in December
  rather than early the next year so tax saving
  will come one year sooner
• both federal and provincial combined tax credits

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Share your plans

• Share your plans, so no one is surprised or
  misinterprets your intentions
• Becomes a tangible testimony of your faith journey

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Congregational Challenges
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Perspectives of Scarcity

• We live in one of the wealthiest countries in the
  world
• Why are so many churches so poor?
• Where does the sense of scarcity originate?

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Three Dimensions of Financial Management
Secular

• Receiving
• Managing
• Giving

Christs mandate
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Who gives what?

• Those who worship regularly
• the 19 of those who worship weekly gave 74 of
  the total value of all donations to religious
  organizations and 22 of the value of donations
  to other organizations
• Donors with annual household income less than
  20,000 gave a greater of their household
  income than others
• Average Christian gives 2.5 of income to Gods
  work and pays 10 to debt interest

Crown Financial Ministries
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Why People Give...

• As the twig is bent, so shall the tree grow.
• Go beyond random dollar giving, and specifically
  assess our response-ability to Gods gifts.
• Pray for the wisdom to give sacrificially from
  first fruits.

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Education Strategies

• Tithing as a value-based strategy
• freely chosen
• from among alternatives
• after careful consideration
• acted upon
• in a consistent pattern in life
• cherished
• publicly affirmed

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StewardshipLiving Our Covenant With God

• Our purpose
• to lead the growth of Stewardship Ministers
  within our congregation and community
• to support each other with education,
  communication and a personal commitment to living
  our covenant with God

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Learn from past experience

• What didnt work?
• On a percentage basis, how much time went into
  planning versus implementation?
• What would you do differently next time?

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Practical stewardship programs

• Tell the story!
• Communicate to inform build awareness
• Educate to remind members that we give because
  God gives we respond to Gods love
• Inspire through PERSONAL testimonies/ mission
  results

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Foot-note on Guilt

• With all this talk about stewardship, will we
  make people feel guilty?
• God forbid!
• Fact is...
• Guilt feelings may be Gods way of telling us we
  are doing something wrong.
• But, we are forgiven

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From guilt to gratitude

• Guilty and forgiven
• What is each one of us going to do this year to
  given abundantly?

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Want to go deeper?

• To review or start your plan
• consider FaithLife Financial
• Go Green - www.faithlifefinancial.ca
• download financial tools
• view seminars
• calculators
• great financial articles