To help to secure a firm financial future for BUMC, the ministerial and lay leadership of the church has developed a multi-faceted financial strategy for the next decade of the church and beyond. One aspect of this strategy is creating a formal planned giving program that allows congregants to make legacy gifts to BUMC, selecting from an array of gift options. Deciding on one or more of these gift options will help to ensure a strong tomorrow for our church, and in many cases, provide a tax advantage to the donor. You can choose the following options as you think through your estate planning and planned giving strategies.

Annual Gifting Strategies:

To make a pledge, please click here: BUMC Pledge. To set up regular contributions or designate gifts to specific programs, please click here: Automatic Gifting and Designating Programs. Ongoing gifts to BUMC may be accomplished using several strategies summarized below.

  • Cash – Simple and convenient. For people who itemize their tax deductions, cash is likely tax-deductible. For many who no longer itemize their tax deductions, there are no tax benefits to gifting this way.
  • Appreciated Securities – Stocks, Mutual Funds, Exchange Traded Funds, and other investment vehicles. The main benefit of this strategy is a possible tax deduction for the fair market value of the securities and the ability to escape capital gains tax on the security’s appreciation. This can also apply to real estate, business interests, and cryptocurrencies.
  • Donor Advised Fund (DAF) – A DAF compounds the tax benefits of giving using either cash or appreciated securities. The strategy works exceptionally well using appreciated securities and the bunching of several years of expected charitable contributions. This 2.5-minute video is an excellent summary: Donor Advised Fund – Schwab Charitable.
  • Qualified Charitable Distributions (QCDs) – For taxpayers over age 70.5 years with Individual Retirement Accounts, QCDs are likely the best gifting strategy. Fidelity has a great article on utilizing QCDs: Qualified Charitable Distributions – Fidelity.

Legacy Gifting Strategies:

Leaving assets to support BUMC after passing can be completed in several ways. In addition, legacy gifts from Individual Retirement Accounts (IRAs) can help maximize gifts split between BUMC and other heirs. Here is a summary of some options:

  • Specific Bequest: A description of what you want to leave to BUMC, whether a specific dollar amount or a particular asset.
  • Residuary Bequest: Leaving all or a percentage of what’s left in your estate to BUMC after specific bequests, debts, expenses, and taxes have been paid.
  • Contingent Bequest: A contingent bequest to BUMC is fulfilled only if certain conditions are met. For example, if your primary beneficiary does not survive you, you may indicate your next choice through a contingent designation.
  • Codicil or Amendment: A codicil defining a legacy gift to BUMC is prepared by your attorney to modify, explain, change, or otherwise qualify terms in your will. If you have a revocable living trust, your attorney can prepare an amendment for you to sign that will serve the same function.

For further information and answers to questions that you may have, please get in touch with Dana Sippel at 703-534-4444.

Thank you for considering these planned giving options to support the reimagined BUMC and ensure that it will possess a strong financial future to carry on our current ministries and new forms of Christian outreach.

Bethesda United Methodist Church (BUMC) does not provide tax, legal, or accounting advice. All tax information presented is for illustrative purposes only and is based on current federal tax law, assumed average tax rates, and may include current state and local taxes. Please note that federal, state, and local tax laws are complex; state and local tax laws differ substantially from state to state. Tax treatment is subject to change by law, in the future, or retroactively. You should consult with your tax, legal and accounting advisors before relying upon this information to make investment, tax, financial planning, and estate planning decisions.