planned giving & trust servicesmoneywise.adventist.org/files/nad_trust_accounting_261.pdf ·...
TRANSCRIPT
![Page 1: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/1.jpg)
Planned Giving & Trust
ServicesImportance of Accounting for Both
![Page 2: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/2.jpg)
WHAT IS PLANNED GIVING?
Long-term income
![Page 3: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/3.jpg)
Planned Giving
15 to 20 years to become income
![Page 4: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/4.jpg)
WHAT IS TRUST SERVICES?
![Page 5: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/5.jpg)
WHO MAKES THE TRUST?
Grantor (s)Could also be called:
Settlor, Trustor, or simply the Trust Maker
![Page 6: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/6.jpg)
WHO MAKES THE RULES?
Trust Document
State Law
Federal Government
![Page 7: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/7.jpg)
METHOD OF ACCOUNTING
CASH (NOT ACCRUAL)
Accrual method may be used but is usually not
recommended or the extra effort necessary.
![Page 8: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/8.jpg)
KEEP SEPARATE
Corpus/Principle
Income (ORDINARY & CAPITAL GAIN)
Both current and undistributed
![Page 9: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/9.jpg)
TRUSTS FLAVORS
Revocable
Grantor retains control
While competent & living, trust may be
changed
Irrevocable
Grantor has very little, or can choose to
not retain any control (Non-Grantor)
![Page 10: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/10.jpg)
WHAT IS PROPERTY
All types of assets are considered Property
Tangible
Have physical form, can be touched or felt and can usually be moved
Intangible
Nonphysical do not have physical form cannot be touched or felt
![Page 11: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/11.jpg)
ASSET VALUATION #1
Revocable Trust
Consistent use of either cost
basis or fair market value
![Page 12: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/12.jpg)
ASSET VALUATION #2
Contingent Assets
Nominal amount $1
Applies to both Revocable
and Irrevocable trusts
![Page 13: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/13.jpg)
ASSET VALUATION #3
Irrevocable Trust
Fair market value* must be used
Valuation dates
Date of death (DOD)
Alternate valuation date (AVD)
Distribution Date (DD)
*Requires qualified appraisal
![Page 14: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/14.jpg)
INCOME TAX RETURNS
Revocable Trust
Usually filed by the Grantor
Irrevocable Trust
Filed by the Trustee (CPA hired by the trustee)
Simple
Complex
![Page 15: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/15.jpg)
TYPES OF SPLIT INTEREST GIFTS
Charitable Gift Annuity (CGA Contract)
Charitable Remainder Trusts
Charitable Remainder Annuity Trust (CRAT)
Charitable Remainder Unitrust (CRUT)
Charitable Lead Trusts (CLT)
Charitable Lead Annuity Trust (CLAT)
![Page 16: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/16.jpg)
GIFT SUBTANTIATION
Cash gifts over $250 Receipt or Letter
Quid-pro-quo notice if total gift over $75
Noncash gifts over $500
over $5,000 qualified appraisal
Donor must file Form 8283
![Page 17: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/17.jpg)
IRS TAX FORMS
Form 1040 Personal Income tax
Form 1041 Trust or Estate Income tax
Form 5227 Split income tax
Form 8283 Non-cash donation
Form 8282 Tattle Tale Form
Form 709 Gift Tax
Form 706 Estate and Generation Skipping
![Page 18: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/18.jpg)
Accreditation…
What is it?
![Page 19: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/19.jpg)
Accreditation Stands
Upon the….
![Page 20: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/20.jpg)
Standards Relationships
….these ought ye to have
done, and not to leave the
other undone.
![Page 21: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/21.jpg)
RELIGIOUS GIVING The Paradigm Shift in Religious Giving
The Old Paradigm
– Based on Scarcity
▪ Moral Obligation
▪ Institution Centered
▪ Budgets are Need-Driven
▪ Giving is a Contribution
The Emerging Paradigm
– Based on Abundance
▪ Donor Cultivation
▪ Donor Centered
▪ Giving is Value-Driven
▪ Giving is Creating Change
![Page 22: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/22.jpg)
Supply Side:The (new) Inclination Model
▪ Focus: On the individual’s
philanthropic desires in
order to guide them in their
decision process
▪ Goal: to inspire the donor’s
imagination
▪ Result: establishment of a
relationship
Demand Side:The (old) Scolding Model
▪ Focus: On the
organization’s needs
in order to awaken a
sense of obligation
▪ Goal: use guilt to
awaken donor
▪ Result:
contribution is
secured
REVERSING THE PARADIGM Supply vs. Demand
![Page 23: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/23.jpg)
![Page 24: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/24.jpg)
Accreditation
Levels of Service
Planned Giving &
Trust Services
Planned Giving
Plus
Planned Giving
Only
![Page 25: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/25.jpg)
Planned Giving Only
Market Planned
Giving
Educate and
Assist Donors
![Page 26: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/26.jpg)
Planned Giving Only (PGO) Activities*
Promotion of planned giving
1
Developing relationships to cultivate planned giving
2
Educate constituents on benefits of Planned Giving
3
Give general info to donors concerning available PG options
4
*Activities allowed at every
service level
![Page 27: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/27.jpg)
Planned Giving Plus
Market Planned Giving
Educate and Assist Donors
May Offer CGAs
May Offer Reimbursements
May Store Original Documents
![Page 28: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/28.jpg)
PGP Organizations May Execute CGAs
Directly With Donors
Organization must contract with a qualified, licensed, certified and insured third party to manage,financial investments
issuing of payments to annuitants
preparing appropriate tax documents
Some Examples of Qualified Third Party AdministratorsBNY Mellon
Western Adventist Foundation
![Page 29: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/29.jpg)
Reimbursements
Organization may reimburse
constituents for the creation
of legal documents naming
the organization as a
beneficiary.
![Page 30: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/30.jpg)
Document Storage (not recommended)
Must be kept in a locked,
fireproof vault
A signed storage agreement
must be kept on file for each
donor
![Page 31: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/31.jpg)
Planned Giving & Trust Services
Markets Planned Giving
Educate and Assist
Donors
Store Original
Documents
Offers CGAs
Able to Serve as
Personal Representative
Trustee
Power of Attorney
![Page 32: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/32.jpg)
Annual Trust Reviews
PGO• Affidavit stating
organization is not
engaging in any
unauthorized practices submitted
by PG Director and
signed by
organization’s
executive
committee• Minimal Expense
PGP• Affidavit
• CGAs reviewed
during financial
audit• Some additional
cost above the
normal financial
audit
PGTRS• GCAS conducts a
full trust review
• Most Expensive
![Page 33: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/33.jpg)
How does this Affect Certification?*
*It Doesn’t
Regardless of level of
service, all Planned Giving
and Trust Services personnel
must be fully certified in
accordance with the NAD
Planned Giving & Trust
Services Manual.
![Page 34: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/34.jpg)
WHY INVEST MONEY IN
PLANNED GIVING?
![Page 35: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/35.jpg)
General Conference $3,144,609.35
Atlantic Union Conference 0
Canadian, Seventh-day Adventist Church in 2,242,265.17
Columbia Union 831,610.72
Lake Union Conference 2,242,361.63
Mid-America Union Conference 1,296,233.65
North Pacific Union Conference 4,080,739.04
Pacific Union Conference 13,926,976.86
Southern Union Conference 7,752,783.42
Southwestern Union Conference 427,761.00
General Conference
Planned Giving & Trust Services
Maturities Report 2016
North American Division (GC & Unions) – $35,945,340.84
![Page 36: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/36.jpg)
General Conference
Planned Giving & Trust Services
Maturities Report 2016
Andrews University 1,111,090.89
It Is Written 2,367,216.95
Loma Linda University 10,903,543.00
Voice of Prophecy 1,772,168.00
GC/NAD Institutions - $16,154,018.84
![Page 37: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/37.jpg)
General Conference
Planned Giving & Trust Services
Maturities Report 2016
North American Division (Unions) $35,945,340.84
GC/NAD Institutions 16,154,018.84
Other Divisions 32,836,466.36
GRAND TOTAL $84,935,826.04
TOTALS
![Page 38: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/38.jpg)
General Conference Planned Giving & Trust Services
Maturities Report 2016
East-Central Africa Division 6,463,335.58
Euro-Asia Division 0
Inter-American Division 1,014,947.61
Inter-European Division 397,405.00
Northern Asia-Pacific Division 1,732,129.25
South American Division 12,596,698.00
South Pacific Division 8,472,067.00
Southern Africa-Indian Ocean Division 48,949.92
Southern Asia Division 2,043,550.00
Southern Asia-Pacific Division 67,384.00
Trans-European Division 0
West-Central Africa Division 0
Other Divisions - $32,836,466.36
![Page 39: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/39.jpg)
Contributions to the advancement of the work of the Seventh-day
Adventist Church through Planned Giving & Trust Services since 1968
= over $1.9 Billion
![Page 40: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/40.jpg)
“
”
In the trust given to the first
disciples, each believer has a
share. Each one is to be an
executor of the Savior’s will.
The Review and Herald, January 7, 1902.
Last Will & Testament of Christ
![Page 42: Planned Giving & Trust Servicesmoneywise.adventist.org/files/NAD_Trust_Accounting_261.pdf · Charitable Remainder Annuity Trust (CRAT) Charitable Remainder Unitrust (CRUT) Charitable](https://reader033.vdocuments.site/reader033/viewer/2022043005/5f8bb6047e9caf41567eb780/html5/thumbnails/42.jpg)