Denominational Policies Procedures For Planned Giving Trust Services

Denominational Policies & Procedures For Planned Giving & Trust Services

Before we begin… A quick word on church structure

General Conference Session General Conference Lake Union Conference Local Church DIVISIONS NAD IAD SAD TED EUD MENA WAD ECD SID ESD NSD SUD SPD

2 Entities to the Church Holy Bible Church Ministries Church Corporation

Corporations are the legal entities of the church Own Real Estate Own Stocks and Bonds Execute Contracts (like Charitable Gift Annuities)

GC & NAD Policy Regarding Planned Giving & Trust Services

What’s the Difference Between Policy & Guidelines? Policy VS Guidelines

Difference Between Policy & Guidelines? Policies = An intentional map of actions that serves to guide an organization or group in decision making or in attaining positive results. Being mandatory, policies are more synonymous to protocols, rules and are similar to the executive orders or decrees mandated by the head of the state. Policy VS Guidelines

What Happens When There is a Discrepancy Between Policies? GC NAD

What is the Planned Giving & Trust Services Manual?

So Let’s Dive In!

Statement of Purpose for PG&TS 1 We are called to be God’s Steward 2 PG&TS help constituents continue to give 3 Seek lawful means to keep taxes to a minimum

Charitable Gift Annuity Agreements 1 Rates given by GC (based on ACGA Rates) 2 Must be a reserve fund 3 Gift Annuity becomes valid when signed

$500, 000 + OR Anything Other than Cash http: //newsroom. ysu. edu CGA Stocks and Bonds NAD Policy says when a CGA is funded with $500 k in cash or publicly traded stock, or funded with real estate of any value, the organization must consult with the next higher organization

Trust Agreements 1 2 Approved by the board of trustees Organization Cannot invest in any property in the trust 3 Organization Cannot pledge any property in the trust as collateral 4 Organization can not loan any funds to a trustor

Revocable Trusts • IF the organization is serving as trustee • THEN the trustor, or the trust agreement, must provide investment instruction

Union Revolving Fund Revo c Trus able t A trust in which a church entity is acting as a trustee can invest its assets in the Union Revolving Fund but cannot make a loan directly to a church Lending Directly to Churches

When Serving as a Fiduciary 1 Shall Not Retain a Fee 2 The Governing Board Must Approve it 3 4 Assets Under Control Are to be Accounted For Disposition of Significant Assets must have prior approval

Named Fiduciary • IF a person is named to serve as fiduciary because of their position and leaves their position • THEN their successor will serve in their stead (it is recommended that the position be named in the documents and not the individual)

Executor Fees • IF an SDA organization serves as fiduciary and chooses not to charge an executor’s fee during probate proceedings • THEN they cannot request reimbursement of time and expenses from other SDA organizations who benefit from the estate • WITHOUT prior written approval

We are to Cooperate With One Another

Calls From Different Areas 1 Inform Person of Local Office 2 Respect Donor’s Wishes 3 Stick With Your Constituency

GC Executive Committee PGTRS Standing Committee Certification & Accreditation Subcommittee

Difference Between Policy & Guidelines? Guidelines = Documents that seek to simplify a set of processes with regard to an established habit or practice. Policy VS Guidelines

Reserve Fund The minimum amount going into reserve fund is the total liability of payments and best practice to put the full amount of the CGA into the reserve fund.