These are taxing times: So turn your assets into tax-free income

By Steve Davis, Director of Gift Planning, Wycliffe Foundation In 1776 during a very difficult time in our country’s history, Thomas Paine uttered the famous phrase “These are the times that try men’s souls.” In light of all that is happening today, we could surely echo these same sentiments. These are indeed “taxing and trying […]

By Steve Davis, Director of Gift Planning, Wycliffe Foundation

In 1776 during a very difficult time in our country’s history, Thomas Paine uttered the famous phrase “These are the times that try men’s souls.” In light of all that is happening today, we could surely echo these same sentiments.

These are indeed “taxing and trying times.” Many of you are living on fixed incomes and watching some of your assets decrease in value, making it more difficult to stretch those resources and support your favorite ministries.

Here are some charitable gift annuity (CGA) ideas that will help you accomplish your goals and support the work of Bible translation at the same time, even in light of today’s uncertain times.

Turn your income into support

If you’ve already turned your assets into tax-free income through a CGA, you may not need all of the income the annuity generates. There are two ways these funds can support Bible translation.

First, you can simply take the income you receive from your CGA and send it back to the ministry, like The Seed Company, JAARS, GIAL, or Wycliffe Bible Translators. This gift could then be designated for a particular missionary or project.
Or you can assign your income payment to the named beneficiary of your annuity. The income from your CGA would go directly to the organization or missionary that will receive the remainder of your annuity upon your death.

Turn your existing CGA into a current gift

This final idea allows you to take your existing CGA(s) and put them to work now.

Through a signed and dated agreement, you may transfer the contract back to Wycliffe Foundation. Some annuitants no longer need annuity payments and desire a charitable deduction. For example, you may be receiving progressively larger distributions from your IRA. Consequently, the annuity income is less important than a charitable deduction that could offset taxable distributions from the IRA. After the annuitant irrevocably assigns the annuity contract to the charity, the charity has no further obligation to make annuity payments. You receive a charitable deduction and Wycliffe uses the remainder of the contract for the work of Bible translation right now. Now you have a tool that can provide for your needs and provide for the work of Bible translation at the same time. And you can do this with certainty even in these uncertain times.

Click here to see a diagrammed real-life example of how a CGA works.

For more information on charitable gift annuities, contact us by phone at (877) 379-7131 or visit us online at WycliffeFoundation.org/cga.