MUNHOLLAND METHODIST CHURCH

LEGACY GIVING FAQ

WHAT IS PLANNED GIVING?

You can make a planned gift (sometimes called a “deferred gift”) to Munholland Methodist Church through such things as your will or trust, retirement funds, life income gifts (such as gift annuities that provide the donor with income during their life and after their death provide remaining principal of the gift to the church), and certain life insurance policy arrangements. Planned gifts are frequently funded from accumulated resources or assets rather than income, and are typically planned for during the donor’s lifetime but not actually received until after the donor’s death. But, planned giving can also include gifts that are made during an individual’s lifetime. Planned giving enables individuals to make sound financial plans that take into account their own needs and those of family, as well as commitment to the church and other charities.

WHAT IS AN ENDOWMENT?

A financial endowment is a donation of money or property to a nonprofit for the ongoing support of the organization. The Footsteps Endowment at Munholland is conceived to last forever, expanding by gifts, donation and investment income.

WHY ARE PLANNED GIFTS IMPORTANT TO MUNHOLLAND?

By including Munholland in your planned giving you will help contribute to the financial sustainability of this important faith institution for generations to come. In the same way that we have been provided for by those who preceded us at Munholland we can insure that those who follow us will be supported in their spiritual journeys. Planned gifts are added to Munholland’s Footstep Legacy Endowment which is prudently invested and managed by the Munholland’s Legacy Committee.

WHY ARE PLANNED GIFTS IMPORTANT TO ME?

Members of the Munholland Community love and support this church. This church has been the focus of people’s lives for generations. People have given generously and sacrificially of their time, talents and fortunes. A planned gift allows each individual to continue their support of Munholland past their lifetime. It allows you to send a message about the importance of your faith. It allows you to celebrate your Christian community by sharing your story with your loved ones. Your gift can help fulfill a dream that you might have for a particular project or ministry for the church. It is a good way to honor someone or remember a loved one. But there are other benefits. A well designed Estate Plan can provide significant benefits to you or your beneficiaries. It can provide such things as income to you during your lifetime. It can provide a positive impact on capital gains tax, or a reduction of estate tax. But the most important benefit is that you get to decide how to best allocate your assets so that the ministries that have been important to you in your lifetime can continue to thrive because of your thoughtful planning.

HOW IS A LEGACY GIFT DIFFERENT FROM YOUR ANNUAL PLEDGE?

A donation to Munholland’s Footsteps Legacy Endowment is fundamentally different from other contributions to our church and its ministries. A donation toward your annual commitment pledge helps to fund Munholland’s ongoing operations. Your donation to our Endowment Fund however, is not immediately spent. It is left to grow to make possible annual distributions from the investment income. These annual distributions from our endowed funds will help support operations many years out and serve as a source of stability in our funding sources. The Legacy Committee, members of this congregation, is obliged to safeguard those original donations through wise investment. Endowment donations are over and above the annual commitment pledge, so it is critically important to pledge to the annual Stewardship campaign to continue support for our staff, programs, and missions.

WHAT IS THE ‘LETTER OF INTENT’?

The Letter of Intent is a document that provides clear information to the Legacy Committee as to how you intend for your gift to be used. One of the primary responsibilities of the Legacy Committee is to always protect the intentions of the donor for the use of their gift. This is not a legal document and it does not replace the need for a will or a living trust. But it can provide important information about personal and financial matters after your death. Munholland’s Letter of Intent provides the opportunity for you to express to your family why it was important to you to make a gift to support the church.

HOW DO I MAKE A LEGACY GIFT TO MUNHOLLAND?

  • Talk with your advisors and family. Decide on the kind and amount of gift you want to leave Munholland. Will you leave a set dollar amount or a percentage of certain assets? Do you want your gift to go to the church’s general endowment or a designated special endowment?

  • Contact the Senior Pastor or a member of the Legacy Committee. Let us know what you are considering and whether you need assistance. While the church cannot offer financial or tax advice regarding your gift, we will be happy to answer your questions about the different gift types. We may not be able to accept certain kinds of real property, or funds designated for a very narrow purpose. Of course, your information will be held in strict confidence, depending on your wishes.

    • Execute your legacy gift by doing one or more of the following:

    o Work with your attorney and change language in your will or revocable trust. o Change your retirement plan and/or life insurance beneficiary forms.

    Upon settlement of your estate, your funds will be given to Munholland according to your wishes and will serve the needs and activities of the church for years to come!

    WHAT IF I DON’T HAVE A LARGE SUM TO DONATE NOW, CAN I STILL PARTICIPATE?

    Yes, the donations are aggregated so that any gift adds to the value of the Footsteps Endowment fund. Ten gifts of $1,000 generate the same value as one gift of $10,000. All gifts are welcome!

    WHAT TYPES OF LEGACY GIFTS ARE CURRENTLY SUPPORTED?

    • Bequests to Munholland in your will or trust.

    • Designating Munholland as a beneficiary of your IRA, 401(k) or other retirement account.

    • Designating Munholland as a beneficiary of your life insurance policy or annuity.

    • Qualified Charitable IRA Distribution.

    • Donor Advised Fund.

    • Gifts of Real Estate; and

    • Planned giving life income gifts administered by the Methodist Foundation of Louisiana including:

    o Charitable Gift Annuities

    o Charitable Trusts

    Please consult your tax advisor and/or attorney for more information, as the church is unable to

    provide specific tax or legal advice.

    WHAT IS A BEQUEST? A bequest is a provision in your will or revocable trust designating a fixed dollar amount, a percentage of your assets, or the remainder of your estate , be given to Munholland upon settlement of your estate. Most bequests are fully revocable while you are alive. Please consult an attorney with respect to the specific language requirements for your will or trust.

    HOW DOES A GIFT ANNUITY WORK? A gift annuity provides you a reliable income stream while you are alive, with the remaining principal going to the designated beneficiary such as Munholland Methodist Church, upon your death. There is a $10,000 gift minimum.

    WHAT IS MEANT BY RETIREMENT PLAN BENEFICIARY DESIGNATION?

    You can designate Munholland as a beneficiary of your IRA, 401(k), 403(b) plan, for a specific amount, or a percentage of total assets. Such gifts can save on income and estate taxes. Retirement assets are subject to income taxes when paid out to a taxable entity. In contrast, nonprofit organizations such as Munholland Methodist Church are eligible to receive such assets without facing income tax liability. Common approaches include:

    • Designating Munholland as a primary beneficiary (1 to 100 percent) of your retirement plan account.

    • Designating a specific amount to be paid to Munholland before the remainder is directed to family or other individuals.

    • Designating Munholland as a contingent or secondary beneficiary to receive the balance only if a loved one, such as a primary beneficiary, does not survive you.

    HOW DOES LIFE INSURANCE BENEFICIARY DESIGNATION WORK?

    You can designate Munholland as a beneficiary of all or a portion of your life insurance benefits. You can also take out a life insurance policy specifically for the purpose of directing the benefits of that policy to Munholland. A tradition life insurance policy (with an accumulated cash value) can be a valuable asset. If the original purpose for the protection no longer applies, such as to educate children now grown or to provide financial security for a spouse now deceased, a life insurance policy can be redirected to help support a charitable cause such as Munholland. To implement your wishes, please contact your life insurance agency or company and complete the needed change-of-beneficiary form.

    You may wish to contact an attorney to ensure you are using the correct language.

    HOW MUCH SHOULD I CONSIDER GIVING?

    In most cases there is no minimum amount for a legacy gift to Munholland. There are many ways to think about an amount, but one approach is to choose a sum that would, in effect, replace your current annual giving level. For example, assuming the church’s endowment will provide 5% of your legacy gift to Munholland each year, then a $40,000 gift would provide $2,000 each year to the church’s operations. In addition, over the long term, your legacy gift would grow along with the church’s endowment as the stock market rises and additional gifts are received.

    ARE THERE ANY RESTRICTIONS ON THE TYPE OF GIFT THAT I CAN MAKE?

    It is preferred that legacy gifts to Munholland Methodist Church be made without designation or restriction as to the use of the funds. Munholland may not accept gifts that are overly restrictive. Gifts that are too restrictive would be in violation of the church’s Gift Acceptance Policy. The types of gifts that are acceptable include checks or cash, marketable securities, and marketable real property. You will notice that our Letter of Intent requests that you indicate whether your gift shall be unrestricted or restricted. All unrestricted gifts will be placed in the General Endowment Fund (Legacy Footsteps). For restricted gifts, the funds will be designated as long as the need exists and the means are available to fulfill the wishes of the donor. Gifts can also be made to any of the Footsteps designated endowed funds that are established to support specific ministries: music, scholarships, missions, youth, etc.

    HOW DO I MAKE A GIFT TO THE ENDOWMENT FUND?

    Write a check to Munholland Methodist Church, and write “Endowment Fund” on the “for” line of the check. Or you may contact the Senior Pastor or a member of the Legacy Committee to discuss the best way to give. Please submit your Letter of Intent with your gift.

    HOW ARE PLANNED GIFTS TO THE FOOTSTEPS LEGACY MANAGED?

    The funds Munholland receives from the settlement of estates are added to the church’s Footsteps Endowment Fund unless otherwise directed by the donor to one of the church’s Donor-Designated Endowments. The church’s endowment funds are managed by the Legacy Committee and a professional management firm. Investments are made in accordance with the church’s Investment Policy.

    HOW DO I FIND OUT MORE INFORMATION ABOUT THE ENDOWMENT FUND?

    You can contact the Senior Pastor, or call the church office at 504-834-9901 for a list of members of the Legacy Committee.

    Your love and support of the ministries at Munholland are so important. Just as so many who have come before us have shared their love of this community by building a strong community of Christian believers, you too are doing that for future generations. Your gift will ensure that Munholland will remain a vibrant beacon of light for generations to come. With your generosity great things will continue to happen in the name of Jesus Christ at Munholland. Thank you for your gift.