Charitable Gift Fund
Simplify your giving…
...by writing one check and letting Anabaptist Foundation distribute your donations anonymously to your local church and the charities you support.
Are you looking for a simple way to give non-cash assets to both your church and multiple charities? Do you need a deduction for the current tax year but have not decided where to give? Using Anabaptist Foundation's Charitable Gift Fund, donors can make a tax-deductible gift now and later decide which churches or charities will benefit from the gift, even in a different tax year. A Charitable Gift Fund is particularly useful for donors who have a one-time tax or income event that generates a substantial gift that can then be used to fund charitable activity over a number of years. Participation in our Charitable Gift Fund Program provides optimal stewardship of the donor’s charitable resources with a minimal investment of time.
How does the Charitable Gift Fund (CGF) Program work?
Donors may give Anabaptist Foundation a gift of cash, or other assets such as shares of stock and mutual funds, real estate, commodities, or anything for which a fair market value may be established. As a sponsoring organization, the Foundation converts all donor contributions into cash and places the funds into our Charitable Gift Fund for disbursement to charity. All gifts are irrevocable contributions to Anabaptist Foundation, a 501(c) (3) public charity, and are not refundable.
Assets contributed to a Charitable Gift Fund become the property of the Foundation, and donors retain no legal control over the gift. However, assets contributed to a Charitable Gift Fund do not benefit the Foundation. The Internal Revenue Service (IRS) requires the Foundation to be the legal custodian of the funds until they are properly distributed to charities. Instead, donors are allowed to submit non-binding recommendations regarding distribution of the donated funds. The Foundation may only disburse to churches and registered charities, not individuals. Alms fund contributions are unrestricted gifts to the church and may not be earmarked to benefit any individual or family. When donors recommend a gift, the Foundation confirms the recipient's tax-exempt status before distributing funds. Donors receive a tax deduction for the year in which they donate to their gift fund, even if the funds are not all disbursed to charities during that year.
Typical Charitable Gift Fund Users:
Jesus said, "Take heed that ye do not your alms before men, to be seen of them: otherwise ye have no reward of your Father which is in heaven." -Matthew 6:1
The Charitable Gift Fund Program does not identify donors when funds are disbursed to churches and charities, unless this is specifically requested.
Business owners may make periodic gifts into their Charitable Gift Fund accounts and receive tax deductions for their business gifts. Partners in a business can have their shares of the contribution deposited into separate accounts so each can make personal gift recommendations.
Donors may use the Foundation's Recurring Disbursement Option for on-going support of various charities by writing one check to Anabaptist Foundation for all charitable giving. Predetermined amounts can be sent monthly, quarterly, semi-annually, or annually. A quarterly report is provided to donors so they can monitor their giving.
Once-in-a-lifetime events such as an inheritance or the sale of a farm or business provide an opportunity to make special gifts. By using the Charitable Gift Fund Program, donors receive an immediate tax-deduction and may distribute multiple gifts from one lump sum contribution. The gifts may be distributed all at once or over a period of time.
Appreciated assets such as shares of stock and mutual funds, and real estate can be placed into a Charitable Gift Fund, with the donor receiving a tax-deduction for the fair market value of the gift while avoiding capital gains tax. It is also possible to donate partial ownership of an appreciated asset. For example, a donor may give Anabaptist Foundation partial ownership of a farm or business real estate prior to the sale. The buyer then purchases the farm or business from both the seller and the Foundation. If the transaction is conducted at fair market value, the tax deduction from the donation may offset a significant portion of the seller's capital gains taxes, redirecting them to charity.
Donors may also generate a tax deduction by contributing a portion of an oil or gas lease bonus payment, or by assigning mineral interests (in some cases) to the Charitable Gift Fund. Please note that individual situations and tax brackets vary, producing different results. Anabaptist Foundation will gladly review a potential donor's situation and estimate the gift amount that would offset capital gains taxes, with no obligation to make a gift or to open a Charitable Gift Fund account. We recommend that you also consult with your accountant or tax advisor.
How do I open a CGF account?
Complete a Charitable Gift Fund Application and Memorandum of Understanding
Contact our office to request an application. By signing the application, donors acknowledge that all gifts made to Anabaptist Foundation are irrevocable and that no portion of their gift will be returned to the donors as a private benefit, nor may it be designated as a benefit to any specific individual. Donors also agree to abide by the uses and limitations of their Charitable Gift Fund account as outlined in our User's Guide.
Enclose Your Donation
Donors may enclose their initial check (minimum $3,000), payable to Anabaptist Foundation. Write "Charitable Gift Fund" on the memo line of the check. To contribute via Automated Clearing House (ACH) please call (800) 653-9817. Or donors may open an account but wait until later to submit their first contribution.
Submit Your Application
Mail the completed application to: Anabaptist Foundation, 55 Whisper Creek Drive, Lewisburg, PA 17837 or email to [email protected] or fax to: (866) 230-6253.
Enjoy Regular Donations
Once an account is established, subsequent contributions of $1,000 or more may be made at any time.
What does it cost to use the CGF Program?
A three-quarters of one percent (0.75%) administrative fee is assessed on each incoming donation, with a $25.00 minimum. If the Foundation incurs any unusual costs to accept or liquidate non-cash gifts (i.e. real estate or securities), such expenses are paid out of the gift proceeds, or donors may choose to cover these expenses themselves. There are no ongoing maintenance fees, and donors are not obligated to gift part of the assets to Anabaptist Foundation. Fundholders receive quarterly statements to monitor their giving.
For more information see our Charitable Gift Fund User’s Guide or contact us.
This information has been prepared for educational purposes only. It is not legal advice, nor a legal opinion on any specific matters. Please consult your tax advisor.