Oklahoma Baptist Homes for Children

 
Neal Wooldridge

a word from Neal Wooldridge
Vice President for Planned Giving

OBHC Two Step

Did you know that you can arrange a gift to Oklahoma Baptist Homes for Children now, but defer completion of the gift until later? For example, when you include OBHC in your will, you make a two-step, or "deferred," gift. The first step occurs when you create your will. Here, you name OBHC to receive a future bequest from your estate. The second step takes place when your will "matures" and OBHC receives the bequest.

Other two-step gifts occur when you name OBHC as a beneficiary in a life insurance policy or when you designate OBHC to receive what’s left in your retirement fund.

These two-step gifts have one important thing in common: They can be cancelled, or revoked, prior to completion. For example, a person can always write a new will or change the beneficiary designation on a policy or brokerage account. Because these deferred gifts can be reversed, they are called "revocable" gifts. Since these gifts are incomplete, they appeal to those who may not want to lock up a major gift at this time. They provide donors with the satisfaction that a gift plan is in place, while adding the assurance that the asset can be retrieved should an emergency occur. The trade-off for this flexibility is that revocable gifts do not qualify for charitable income tax deduction.

Such is not the case with "irrevocable" deferred gifts. Once initiated these two-step gifts cannot be undone. Consequently, the IRS allows a charitable income tax deduction in the year the gift is made. An example of an irrevocable deferred gifts. Once initiated, these two-step gifts cannot be undone. Consequently, the IRS allows a charitable income tax deduction in the year the gift is made. An example of an irrevocable deferred gift is the charitable gift annuity. Suppose Mrs. Donor gives $25,000.00 to OBHC for a gift annuity. Every year for the rest of her life, she will receive a set amount from The Baptist Foundation of Oklahoma, paid monthly, quarterly, semi-annually or annually. Since the Foundation’s policy forbids us from using any of the gift upon receipt, the entire amount is set aside in reserve. Only when the annuitant dies are the funds available for our use.

There are other irrevocable deferred gifts as well, such as charitable remainder trusts and contributions to a pooled income fund. Though these gifts arrangements differ in various respects, they all provide tax, as well as other, benefits to the donor.

To learn about OBHC’S "Two-Step" giving program contact our Vice President for Planned Giving, Neal Wooldridge, at (405) 570-9836 or e-mail Neal Wooldridge.


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