Big Giving To Ministry Is Not As Complicated As You Think
90% of people’s wealth is not in their bank account – many of them have wealth to give now and in the future that is beyond what their regular income may allow. And most of them have no plan for how to manage this.
Most of us in pastoral ministry know that this exists. We may even have our own financial planner and have named both children and organizations as benefactors in an estate plan. One of the challenges to this method of giving being embraced is its almost singular connection with the bequest. Everyone thinks “will and estate” when they hear planned giving. In practical terms, someone has to pass away for his or her family and church to receive finances from an estate. Almost everyone hears the term “planned giving” or “gift planning” and thinks about their Great Uncle Bill who left money and divided it among his heirs. He may have even left some to the church.
It seems a distant and unpredictable benefit to a church to have people naming the church in their will. Church leaders have needs now. And followers of Christ have the opportunity to manage well what they have been given while they are living, too.
Did you know that 4 out of the top 5 planned giving methods involve giving-while-living?
Many calls this Gift Planning. I call it a win-win-win.
Win: Individuals and families can make an impact through giving.
Win: Those families pay less taxes so they can give more.
Win: Churches receive large gifts to fuel and sustain the future of ministry
Church leaders have missed out simply because of misunderstanding or lack of information – not because it is difficult or time consuming to have an intentional approach to gift planning.
Besides, churches will almost always use outside organizations (not the pastor or staff) to coach people on the methods of non-cash giving. As well, the administration of those gifts will often be put into the hands of a professional outside group.
Why is this so important?
Funding can sustain the impact of the church and community into the future
Baby Boomers will transfer enormous wealth now and in the next two decades
Many of these top supporters of churches are at a transition in both age and income
Most know that giving heirs enormous wealth is not always wise
There are ways to give more money to the church and pay less in taxes – there are even ways that donors both give and receive income
Churches can receive these non-cash gifts by creating clear pathways to use the 5 Most Popular Planning Tools:
Bequest – writing your church into your estate plan.
Donor Advised Fund – filling a holding account to distribute later to churches and charities.
3 Ways To Both Give & Receive Income Now
Pooled Income Fund
Charitable Remainder Trust
Gift Annuity
As we have dedicated our generosity coaching for churches to having a holistic plan, I encourage church leaders to consider gift planning. This can be part of the pathway of generosity you create from the person who is not ready to give anything to the church to the family that is ready to dedicate a portion of their wealth (now and in the future) to the church’s mission.
Auxano has partnered with MortarStone to provide that outside counsel to churches that want to begin this discussion. MortarStone has been known for their giving analytics software but is now serving churches nationally by helping to set up a gift planning ministry. Contact meagan@mortarstone.com with more questions about this vital part of any generosity culture.
