Recent Activity in United Pentecostal Foundation

The first week of July 2010 three individuals have purchased a total of $275,000 in Charitable Gift Annuities. It reminded me again of the urgency of getting the word out to pastors and ministries of the value of CGA's.

What is a Charitable Gift Annuity (CGA)?

A CGA is a legal agreement between a donor or two donors and a non-profit organization. This agreement is a binding contract that provides a pre-established payment until the last donor (annuitant) passes away. The money (corpus) that is left in the annuity is then given to the pre-determined non-profit agency or ministry the donor loves and wants to bless. Typically, a CGA will only make economic sense for those 60 and older.

What are the benefits to a Donor?

• They do not have to worry the rest of their life about reinvesting those monies.
• It is a guaranteed quarterly check into their checking account of 1/4 of the annual pre-determined payout yearly.
• They receive a tax deduction, determined by government-based actuarial tables, the year the CGA is established. If the donor cannot use the full amount in the first year, the balance can be rolled over up to five years until fully used.
• The money is no longer a part of their estate to be cared for in probate at death.
• Typically, over half of the annual annuity income is tax-free, and the balance is based on ordinary income taxation tables.

Can someone in our church purchase a CGA and benefit our church?

The short answer is yes, with two basic rules.

• The United Pentecostal Foundation (UPF) can make CGA contracts in most states. The states we cannot sell in are California, Washington, New York, New Jersey and Hawaii.
• If your church or ministry is listed in the UPCI manual at the death of the annuitant, the balance, as agreed in the contract, will immediately go to your church or ministry.

How can I obtain further information?

Call the Stewardship Group office as listed below and they can prepare a proposal for you. Or go to www.unitedpentecostalfoundation.com and click on "Charitable Gift Annuities" at the top. You will also find an explanation and "Gift Calculator" where you can help members of your assembly or ministry consider this as a way for them to benefit personally, while leaving a gift for your ministry or assembly. If we can help in any way, please contact us.

The Stewardship Group can help your church with Church Loans, Capital Campaigns, Church Construction and Teaching on Gift and Estate Planning. Go to http://www.upcstewardship.net/documents.asp and fill out the appropriate form requesting that we contact you. Or contact our offices at the number/e-mail listed below.

Stephen Drury is Director of Stewardship, President of the United Pentecostal Foundation, and Co-Founder of New Beginnings International Children's and Family Services. You may contact him at smdrury@upci.org or 314-837-7304 Ext 309.