To provide financial support for major building and maintenance projects of First Baptist Church and thus support and maintain its ministries.
The Foundation was incorporated by the state of Texas on November 5, 1997, as a charitable, religious and education nonprofit corporation. It encourages, receives and manages gifts and bequests for the benefit and support of capital and building projects and its ministries of the First Baptist Church of Lubbock.
The Foundation manages funds and property which are held in trust for the church and its ministries. Income earned from investments is distributed according to the specific directions of the donors, or in the absence of specific directions, by the Foundation board.
The Foundation provides a unique stewardship opportunity for members and friends of First Baptist Church to make major gifts during their lifetime, or at death, which will perpetuate their life's interests and have a lasting, eternal benefit in Christian purposes.
Gifts to the Foundation are invested and unless the donor directs otherwise, only the income from the investment is used. The principla of the gift remains invested to provide a perpetual source of support for church ministries not otherwise avaliable through the annual church budget.
The FBC Foundation/Tower Society is First Baptist’s way of acknowledging those who have included FBC or the FBC Foundation in their estate plans. We have created this society to offer a means for people, through thoughtful estate planning, to provide for their families and loved ones while perpetuating the values that are central to the FBC Foundation’s mission.
The FBC Foundation/Tower Society is open to all persons who make a deferred gift. There are many ways of giving, including wills, trusts, insurance, securities, qualified plans and charitable gift annuities.
Planned Giving Opportunities
Planned giving supports the FBC Foundation’s future while providing financial benefits to donors and their families. Contributions of this type are called deferred gifts because the actual gift to the FBC Foundation is deferred until some time in the future, although the donor benefits immediately from the gift. Also known as life income gift plans, deferred gifts offer the donor or someone they designate, an income for life, an immediate income tax deduction for the donor and potential estate planning benefits.
Charitable Bequest (A Will)
There are several ways that you can make a bequest or gift through your will to the FBC Foundation. The provision you choose will depend upon your circumstances, what type of property you wish to bequeath, and your other obligations. The kinds of bequests you can make are:
- Specific Bequest: This is where you bequeath a specific sum of cash or other property.
- Residuary Bequest: In this case you bequeath a specified percentage or all of the assets remaining in your estate after other expenses and bequests have been paid.
- Contingent Bequest: In this case you direct that a specific amount or a percentage of your estate be paid to the FBC Foundation, only if your other beneficiary(ies) does not survive you.
Your attorney can provide the proper language for the bequest you choose.
Charitable Gift Annuity
In exchange for your gift, the FBC Foundation pays you (or another beneficiary) a fixed amount annually for your lifetime. The rate of return is attractive and the payments are guaranteed for life.
Charitable Remainder Trust
This life income plan is created by transferring assets to a trust that pays you (and another beneficiary, if you wish) income for life. At the end of the trust, the remaining trust assets are transferred to the FBC Foundation. A bank or trusted advisor can serve as trustee. The type of trust you choose determines your annual payments.
- A Charitable Remainder Annuity Trust (CRAT) pays you a fixed dollar amount annually for life. The fixed payments are determined by the payout percentage selected at the beginning of the trust. You can claim a charitable deduction on your income tax for the present value of the amount given to charity in the year that you create the trust. The payments you receive are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.
- A Charitable Remainder Unitrust (CRUT) pays you a fixed percentage of the fair market value of the trust assets, as revalued each year. You can claim a charitable deduction (based on your life expectancy) on your income tax in the year you create the trust. You may also make additional gifts to a unitrust at any time with corresponding tax benefits. The payments you receive are taxed as ordinary income, and in some cases as capital gains or tax-free return of principal.
Charitable Lead Trust
In a life income gift, the donor transfers the assets and receives annual payments for life, after which the assets remain with the FBC Foundation. In a lead trust, income is paid to the FBC Foundation for a number of years, beginning immediately. A gift tax may apply at the time the trust is established. When the term of the trust is completed, its assets may be transferred to other beneficiaries (often grandchildren). A lead trust may be a valuable tool for donors in high tax brackets.
Gift of Remainder Interest in Personal Residence (Life Estate Gifts)
You may plan to leave your home or vacation residence to the FBC Foundation in your will. If you make a commitment now to give the property later, you can claim an income tax deduction for part of the property’s value (based on your age and the value of the property).
Although you give the property now, you continue to live in or use it just as before, and continue to be responsible for taxes and maintenance. After your lifetime, the property comes directly to the FBC Foundation, avoiding probate.
This opportunity is limited to homes, farms and vacation homes; it cannot be used for rental property (however, a gift of rental property could be used to set up a charitable trust-see previous information).
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Life Insurance
An often-overlooked asset that can enable you to make a significant gift to the FBC Foundation is a life insurance policy that is no longer needed for its original purpose. For example, you may have taken out a life insurance policy when your children were small. If they are now grown and on their own, you can give the policy to the FBC Foundation and receive an income tax deduction for either the replacement value or cash surrender value of the policy, depending on whether or not it is paid-up.
If the policy if not fully paid and you continue to pay premiums, you can claim additional deductions for the amount of any premium payments you make. This is also the case if you purchase a new policy and name the FBC Foundation as the owner and beneficiary of the policy.
You may also name the FBC Foundation as the beneficiary of your policy without giving up ownership. There is no immediate tax deduction (because the designation is not irrevocable) but your estate will be entitled to a federal estate tax charitable deduction.
Gift of Retirement Account
Payments from retirement accounts to charities at death are wholly free from any taxes. A retirement account can be subject to an overall tax burden exceeding 70 percent that leaves only a fraction of the account value to heirs. However, it can be worth 100 cents on the dollar to the participant's favorite charity. Put another way, this can be a way you can provide substantial benefits to your favorite charities at a very low net cost.
Charities can be named as the beneficiary, or one of the beneficiaries, of a retirement account. This is done by signing a beneficiary designation form supplied by the trustee of the retirement plan and not by your Will. For income tax reasons, if a plan participant wants to leave only a portion of a retirement account to charity, the best way to do so is to create a separate IRA for that portion which, at death, passes exclusively to charity.
Gift of Appreciated Stock
While not a deferred gift, a gift of appreciated stock is an excellent way to support the FBC Foundation and simultaneously avoid a capital gains tax and take a charitable deduction. Outright gifts of marketable securities for current operations or endowments can be made in several ways. Please contact the FBC Foundation for details on how to make a gift of appreciated stock.
Planned giving vehicles can provide the means for you to make a significant gift to the FBC Foundation which will—at the same time—result in benefits to you and your family. Some of the benefits you may realize are long-term financial security, increased income and the reduction or elimination of income tax, capital gains tax and estate tax. In addition, these plans can help you provide your heirs with increased inheritances. Most importantly, you will be helping FBC fulfill the Great Commission of telling the Lubbock and the world about our Savior Jesus Christ
If you are interested in any of these planned giving opportunities or would like to talk with us about a gift to the FBC Foundation, please let us know.
FBC Foundation
2201 Broadway
Lubbock, TX 79401
(806) 747-0281
The above information may be helpful in your financial, estate and charitable planning.
Please consult your attorney or legal advisor as to applicability to your particular situation. There are members of FBC who are available to professionally assist you with questions.
The Foundation offers opportunities for giving in several ways:
- Gifts for major repair and renewal of the church facilities
- The naming of the Foundation as a beneficiary in a will
- Memorial gifts
- The assigning of insurance policies to the Foundation
- The use of any of several types of trusts and annuities, for those who wish to receive life income from their capital
The Foundation is entirely self-supporting. In encouraging people to make gifts, the Foundation is in no way competing for the tithes and offerings which individuals give weekly to the church for the current operating budget. These gifts are given out of current income shile the Foundation seeks to encourage gifts of accumulated capital.
Investment Possibilities
- Cash
- Mutual Funds
- Common Stocks
- Real Estate
- Savings Accounts
- Coins
- Certificates of Deposit
- Treasury Bills
- U.S. Treasury Bonds
- Municaipal Bonds
- Convertible Bonds
- Insurance Policies
- Art Work
- Hard Metals
- Money Market Funds
- Commercial Paper
- Real Estate Mortgages
- Corporate Bonds and Debentures
The Foundation qualifies as a tax-exempt organization under section 501 (c) (3) with the Internal Revenue Service. All gifts to the Foundation are tax deductible.
Articles of Incorporation and Financial Statement are avaliable upon request.
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