1 Timothy 6: 17-19

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.

This quotation from Timothy epitomizes the reason for our Endowment Fund … “a firm foundation for the coming age”. An Endowment Fund is a fund where the principal is held in perpetuity, and only the income is distributed. According to our policy, when the Mountain Rise Endowment Fund exceeds $500,000 it will provide annual income from interest and dividends that will support the financial needs of our church for future generations.

There are many ways to contribute to the Mountain Rise Endowment Fund and help build a church foundation for the benefit of our children and grandchildren.

Current gifts

Current gifts provide immediate investment that builds the Endowment Fund today. They can be in the form of cash, securities or real estate property. All such gifts are entitled to a charitable tax deduction.

Planned gifts

A variety of gifts can be planned and/or funded now, but the benefit is not received by the Endowment Fund until after the death of the donor(s). Such deferred gifts are commonly made through a Will or Living Trust. You can designate a percentage or a dollar amount, or direct that the Endowment Fund receive the residual amount of your estate after other beneficiaries.

A) Life-Income Gifts

Life-income gifts are donations which pay you income for life, with the remaining principal paid to the Mountain Rise Endowment Fund at the time of death. You receive a tax deduction for the charitable portion of the gift in the year the gift is made and for the rest of your life you benefit from additional income, some of which may also be tax-free.

(i) Charitable Gift Annuities
A Charitable Gift Annuity’s rate of return is based solely on your age at the time of the gift. Annuities may be funded with cash or appreciated securities, and provide fixed income payments for life to you and/or another person, successively. A significant portion of the income may be tax-free. You may defer income payments to a later date, such as retirement age, which can produce a substantial increase in the rate of return. A “Gift Calculator” can be found on the website http://www.ucc.org/finance/fd/giftcalc.htm that will demonstrate the benefits from this type of planned giving. The minimum amount required to establish a UCC Gift Annuity is $1000. An information packet about Gift Annuities with application forms can be ordered on the website http://www.ucc.org/finance/fd/orderform.pdf .

(ii) Charitable Remainder Trusts
Charitable Remainder Trusts may be funded with cash, securities or real estate and income payments may be fixed or flexible. The most common type, the Unitrust, is valued annually and the donor is paid a fixed percentage of the value over the following year. Alternatively, an Annuity Trust provides a fixed unchanging income determined at the time the trust is created. In either case, there is an initial tax deduction because the value remaining in the trust at the end of the trust period will become the property of the Endowment Fund. The payments you receive may be tax free or taxed at lower rates. Examples can be generated by selecting a Charitable Remainder Trust on the “Gift Calculator” found on the website http://www.ucc.org/finance/fd/giftcalc.htm. The minimum amount required to establish a UCC Charitable Remainder Trust is $50,000. An information packet about Charitable Remainder Trusts can be ordered from the website http://www.ucc.org/finance/fd/orderform.pdf .

(iii) Pooled Income Fund
The Pooled Income Fund is like a mutual fund; it accepts gifts from many donors, manages them, and distributes each gift’s portion of the earnings to the designated one or two life-income beneficiaries, successively. A charitable tax deduction is allowed because, upon death of the last beneficiary, the value of his/her shares in the Pooled Income Fund is donated to the Endowment Fund. The tax deduction can be determined using the “Gift Calculator” on the website http://www.ucc.org/finance/fd/giftcalc.htm. The minimum gift amount for a UCC Pooled Income Fund is $2000. An information packet about the Pooled Income Fund that includes the ten-year performance of the fund can be ordered on the website http://www.ucc.org/finance/fd/orderform.pdf .

B) Life Insurance
The Endowment Fund can be named as the beneficiary of your life insurance, or the policy itself can be donated to the church. If the policy is paid up, your tax deduction will generally be the replacement cost of the policy at the time it is donated.

C) Retirement Assets
Retirement assets may be expensive for heirs to inherit. Naming the Endowment Fund as the beneficiary of your retirement fund may provide a significant tax savings to your estate.

D) Charitable Lead Trusts
A Charitable Lead Trust provides current income to the Endowment Fund during your lifetime or for a specified term of years, after which the remaining principal is returned to you or your heirs. Payments to the Endowment Fund may be fixed or variable, depending whether a Charitable Lead Annuity Trust or Charitable Lead Unitrust is created. The tax deduction that can be generated in either case can be demonstrated on the “Gift Calculator” found on the website http://www.ucc.org/finance/fd/giftcalc.htm. The minimum amount required to establish a UCC Charitable Lead Trust is $100,000.

For information about the Mountain Rise Endowment Fund, contact any member of the Mountain Rise Endowment Committee.

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