New donation methods have been made available to our supporters.
by Staff Writers
“In October, we learned of a donor who would finalize a charitable gift annuity to benefit our ministry—but it needed to be finalized before the end of 2013,” relates Norbert Restrepo, president of Hartland Institute.
The time had come for Hartland to start to offer planned giving (PG) resources to its supporters. “These can include will and bequest planning, gift and estate planning, and charitable gift annuities,” explains Richard Reichard, director of Stewardship Ministries.
Richard had attended a Planned Giving Startup Seminar last year in June. Then in August, Hartland’s administration learned of Western Adventist Foundation (WAF). “Their commission is to make many PG instruments available to Seventh-day Adventist organizations, including Hartland,” Richard informs us. “We firmly believed that it would be in our best interest if we could utilize WAF to offer PG resources to our donors.”
There was a catch, though. “WAF requires the organizations they serve to document their commitment to the Seventh-day Adventist faith in their corporate documents,” shares Norbert, “so WAF’s attorney proposed two amendments to Hartland’s Articles of Incorporation.” Hartland’s administrative committee, bylaws committee, and board all voted in favor of making these changes.
Yet the proposed amendments to Hartland’s Articles of Incorporation still needed to be approved by its constituency. Just under the wire on December 19, Hartland held a special constituency meeting for the sole purpose of considering these amendments. The constituents unanimously voted, “Yes.” Planned giving has reached Hartland.
But what is a charitable gift annuity?
First, the term annuity means “…an investment that pays someone a fixed amount of money each year.”1 Charitable gift annuity refers to “a type of gift transaction where an individual transfers assets to a charity in exchange for a tax benefit and a lifetime annuity [income].”2 For one that benefits Hartland, there are three steps:
The donor gives cash or other property to WAF with a designation to benefit Hartland.
The donor benefits from an income tax deduction, and WAF pays him/her a fixed monthly amount based on the donor’s age, current rates, and other market variables at the beginning of the annuity.
The annuity ends at the death of the donor and their spouse (if included), at which time WAF transfers the remaining principal to Hartland.
If you are interested in investigating a charitable gift annuity, you may call Richard Reichard at 540-672-1995 or Jim Brown of Western Adventist Foundation at 1-866-365-5595. Richard concludes, “Planned giving resources will help us in the long run. With this, we are investing in the future of Hartland Institute—not merely in our immediate operations.”