Food Bank of South Central Michigan

If you believe that no one should have to make a choice between paying the rent
or getting groceries, why not choose to include the
Food Bank of South Central Michigan in your estate plans.

Choose to continue the good work of getting food to individuals who need it.

You can help provide enough food for the households served by the Food Bank of South Central Michigan for generations to come via an estate gift.

For example, if you typically make an annual gift to the Food Bank of $250, by making a $5,000 estate gift, the interest generated on that principal would continue to provide $250 every year to help the Food Bank feed hungry households. With such a gift, you can continue your annual giving forever!

It's not as complicated as you might think. Even if you don't have a spouse, children or close surviving relatives, it's important to leave your estate to someone or to a favorite charitable organization. If you don't the state could keep your entire estate. A few examples of estate-type gifts include:

including the Food Bank in your Will, either with a certain percentage figure, or simply
indicate that whatever remains after inclusion of all other beneficiaries be given to the
Food Bank;
naming the Food Bank as the beneficiary on a life insurance policy.

Meet the Codys: Giving via a Charitable Gift Fund

Frank and Shirley Cody have made a decision to give to the Food Bank via a charitable gift fund. "It's something that a number of people choose to do," says Mr. Cody, "because it enables a donor to set aside a certain amount of money (for a charitable contribution) and then get the benefit of a tax deduction when the money is set aside." The benefit of the tax deduction takes place when the money is originally placed aside for charitable purposes, not when the money is actually donated to the charity.

Typically, giving via a gift fund is a two part process, consisting of placing the money in the trust initially, and then, at a later date, making the actual distribution. The tax benefit occurs up front, and is not tied to the distribution. The money distributed is restricted to gifts to any IRS qualified public charity. The distribution itself is not taxed.

Giving through a Charitable Gift Fund also provides an opportunity for a larger gift and a greater tax deduction. That's because securities can be transferred from ordinary accounts into a gift fund without being taxed for capital gains on the investment. Depending upon the donor's tax bracket, it could result in as much as 25% more to give!

For the Codys supporting the Food Bank makes perfect sense because, "it's very important to provide food for people. That's not debatable," says Mr. Cody. "And we're attracted by the multiple effect of giving to the Food Bank because of the efficiency of the organization, and it's local too. That appeals to us. Your organization gives us a personal sense of belonging."

Gifts via Life Insurance Policies

One way to "gift" life insurance is to designate your charity of choice as the beneficiary. You will retain ownership of the policy, keeping access to the policy's cash value. You will still be allowed to change your beneficiary at a later time, if you choose.

You can also transfer ownership, assigning your charity of choice as BOTH owner and beneficiary. This method will NOT allow you to change your beneficiary or have access to the cash value of the policy, but it will provide tax benefits. If your charity of choice is a 501-c-3 (like the Food Bank) then the premiums you pay on the policy should be tax deductible.

Similar benefits also apply to annunities.

Gifts of Securities Are Also Accepted

If you sell appreciated securities, you could lose up to 25% of your appreciation to taxes. But when you donate a gift of stock or securities to the Food Bank, you avoid capital-gains taxes, thus preserving the full value of your gift. Your tax advisor can help you.

Special Michigan Tax Credit Available for Annual Contributions

Aside from legacy-type gifts annual gifts to the Food Bank are normally eligible for a special
Michigan Tax Credit (for up to half of your contribution - a maximum $200 credit, for a married couple, filing jointly, on a gift of $400; and a maximum of $100 for a single individual). This Michigan Tax Credit is available for contributions made directly to the Food Bank and also for contributions made to the Food Bank via its endowment funds held at the Battle Creek, Barry County and Jackson County Community Foundations.

Food Bank of South Central Michigan:
PO Box 408, Battle Creek, MI 49016
269-964-3663