Several years ago, Larry and Allison invested $30,000 in what they believed to be an attractive stock. It turned out to be a very wise decision, as the stock increased in value to $100,000 within three years. Though they were not in need of additional income at the time, the couple decided to cash in on this growth.
Allison: We had a good year last year and we were looking for ways to maximize our deductions and reduce what we owed in taxes. At the same time, we were considering the best way to make a gift to ministry. We prayed about this and decided to support the Evangelical Free Church of America.
Larry: We are both in good health. We are still working, so we don't need extra income right now, and retirement from employment is still probably more than 10 to 15 years away. We were looking at smart ways to save for when we no longer get a pay check. Our retirement goal is to travel to visit friends and family, and do some short-term missions work.
Allison: We met with a gift planner from the EFCA Foundation. He explained the benefits of setting up a deferred gift annuity. He told us that we could give our stock to the EFCA instead of selling it and receive an immediate charitable tax deduction. Plus, when we turn 65, the deferred gift annuity would make annual retirement payments to us for the rest of our lives.
Larry: We set up the deferred gift annuity and experienced the benefits Allison mentioned. We received a generous charitable tax deduction that produced immediate tax savings. When we retire, we can look forward to the annuity payment each year that will make our retirement travel possible. On top of all of this, the deferred gift annuity makes a portion of the income payments we receive tax-free.