Planned Giving for Feed My People

Enhance your legacy to your family and assist Feed My People in helping others help themselves.

Through a planned gift to Feed My People, you can do all this:

• Increase your annual income.
• Elimate capital gains tax on assets.
• Receive a significant income tax deduction.
• Lower your estate tax bill.
• Assure the transfer of your fullest possible estate value to heirs.
• Increase possible gifts to grandchildren.
• Make a meaningful gift that significantly furthers the work of Feed My People.

Everyone wants to leave the world better than they found it. One way is to ensure that the assets you have accumulated are carefully conserved so that they continue to serve the interests you care most about: those of your family and of institutions such as Feed My People, that will best perpetuate your principles.

By making appropriate plans for your charitable gifts, you will not only obtain significant tax savings while benefiting yourself and your family, but also you will benefit Feed My People. But if you do not plan properly, a very large portion of your accumulated assets will be used to pay estate taxes, and your heirs will be left with a difficult burden. Careful planning should also be applied to the sale of appreciated assets during your lifetime. Without it, you may pay substantial amounts of capital gains tax that could have been avoided through a charitable gift.

The tax laws allow several kinds of planning gifts. They include gifts of property, which would give Feed My People current income from your investments to fund its present and near-term operating needs. Such gifts lower your estate tax liability. There are also gifts in trust which become available in the future, to increase Feed My People's endowment over a longer term. Planned properly, these gifts can increase your current income, give you a tax deduction, wipe out capital gains tax, and lower your estate tax liability. Your life insurance can be used for planned giving as well. A current contribution can fund premiums on a policy that benefits Feed My People, and the amount of the gift in trust to Feed My People need not disinherit your heirs. You can replace the gift at a discount using life insurance that pays the dollar value to your heirs, both income and estate-tax free.

Following is a summary of several planned giving techniques. It emphasizes the tax benefits to donors and the benefits to Feed My People. These are illustrations only. Please consult your financial planner, before implementing any of these techniques.

If you wish further information, or if you would like to arrange an appointment with our Planned Giving Counselor, please contact our Executive Director, John De Guire, or our Development Director, Gail Davis, at (314) 631-4900.

 Lead Trust

A stream of current income to Feed My People for a specific number of years; remainder goes to heirs.

• No tax deduction for the donor.
• Reduces estate tax.
• Can replace for your family the dollar value of income stream to Feed My People (at a discount).
• Can magnify impact of the lead trust gift to Feed My People by using a portion of Feed My People's trust income as a premium for insurance on the donor's life.

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 Charitable Remainder Trust

A gift in trust generates an income stream to donor during life from the full current value of the donated asset. Remainder at death goes to Feed My People.

• Current income tax deduction.
• No capital gains tax on the gift of appreciated asset.
• Pays a taxable stream of income to donor.
• Reduces estate tax.
• Can replace dollar value of the donated asset for heirs.

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 Charitable Gift Annuity

• Pays an income stream to donor during life. Donor receives current income tax deduction. Remainder at death goes to Feed My People.
• Annuity payments are taxable income to donor.
• Reduces estate tax.
• Can replace dollar value of the donated asset for heirs (at a discount).

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 Outright Gifts

• Gifts of cash or other assets. Current cash flow for Feed My People.
• Current income tax deduction. No capital gains tax on gift of appreciated assets.
• Reduces taxable estate.
• Can replace dollar value of the donated asset for heirs (at a discount).

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 Gift of Life Insurance

• Gifts of cash for premiums. Leverages a small annual donation into a significant gift.
• Current income tax deduction for donated premiums.
• Reduces taxable estate by amount paid in premiums.
• Dramatically increases the value of annual gifts to Feed My People when Feed My People is the owner and beneficiary of the policy.

 Other Contribution Methods

 Cash

Feed My People will accept cash as a tax-deductible charitable contribution, and will issue a receipt to the donor.

Taxpayers are permitted to deduct gifts to qualified charitable institutions such as Feed My People, up to 50% of their adjusted gross income each year. If a gift plan would result in a deduction of more than this amount in a given year, the excess can be deducted over a five-year period.

See your advisors for special limitations and exceptions, which may apply to gifts of property other than cash.

You may also enjoy additional benefits from state income tax savings.

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 Stocks and Bonds

Stocks in a closely held corporation may make an attractive gift to Feed My People. If you give closely held stock, you can claim an income tax deduction (for its appraised fair-market value), avoid the capital gains tax liability, and remove this liquid asset from your estate.

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 Wills

Wills are one of the simplest ways to distribute an estate. They can also be a creative vehicle through which to make thoughtful gifts.

After providing for the needs of your loved ones, you may choose one of several ways to benefit Feed My People.

By having your attorney revise your will or add a simple amendment, you can make a gift of a dollar amount, specific property, a percentage of your estate, or the remainder after your loved ones have been provided for.

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 Volunteering

There are certain tax benefits for volunteer service. You can deduct the cost of gas and oil that are directly related to getting to the organization where you are a volunteer or you can simply deduct 14 cents for each mile. (Personal note: you come in contact with a lot of very nice people who are also volunteering.)

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 Feed My People Endowment

An endowment fund is one where the donation itself is held in reserve, not to be used except in the case of extreme emergency, while the charity is able to use the interest generated from the fund. Thus, the charity is more likely to have long-term stability. One or two bad years with donations won't sink the organization. Feed My People established an endowment fund in 1993 with a very generous donation from Virginia C. Sodemann after whom the fund is named.

While a large donation to the endowment fund will result in the donor's name added to a permanent plaque located at Feed My People's main office in Lemay (if the donor so wishes), any amount can be donated to Feed My People through the endowment fund.

Your endowment gift is particularly appropriate for Memorial or Tribute remembrances since it is truly "a gift that keeps on giving."

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 Memorial/Tribute Program

This program started in 1985 when a donor died and the family asked that money be sent to Feed My People in lieu of flowers. Later tributes to living people were added as others sent in money to honor someone. In 1991, the memorials and tributes started being listed in the Manna Messenger. When someone requests a memorial or a tribute, a card is sent to the person or family designated, saying that the donor has made a donation to Feed My People to help feed the needy in memory of, or in honor of the person named. An acknowledgement is also sent to the donor. Later the person being remembered will also be listed in the Manna Messenger.

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 Special Fund Raisers

Feed My People has over the years developed special fundraisers to help us meet our commitment to those we are helping. Some have been one-time fund raisers, such as our cookbook, while others have become annual events.

Some of our fundraisers has included Trivia Nights, our annual Walk for Hunger called "The Manna March," Freedom from Hunger Food Campaign, selling grocery certificates, Entertainment Book sales, festivals and dinner auctions. You can help support us by joining in on one of these.

Feed My People is concerned about privacy and guards your data closely. We value our relationship with you and recognize the importance of protecting the pricvacy of your personal information. The information we have about you is protected and secure, and we will work dilligently to ensure that your personal preferences regarding the use of your information are honored. The information you share with Feed My People is for organizational use only and is never shared, sold, or bartered with any other entity.