Charitable Gift Annuity
A charitable gift annuity (CGA) is a lifelong contract where a donation is made to Baptist Homes & Healthcare Ministries (BHHM) in exchange for fixed income payments. The CGA can be funded with cash donations, but possibly also securities and gifts of personal property. BHHM pays the donor a fixed income for life, based on age at the time of the gift, life expectancy, and whether there are one or two beneficiaries. Donors may also be eligible to take a tax deduction at the time of the original gift. A portion of the payments the donor receives may also be tax-free for a period of time. At the end of the donor’s life — or the second donor’s life if the CGA is arranged for two people — BHHM is entitled to the remainder of the gift.
NAP Tax Credit
Baptist Homes & Healthcare Ministries has been approved by the Missouri Department of Economic Development (MODED) to issue $350,000 worth of Neighborhood Assistance Program tax credits to assist in the funding of renovations at our Arcadia Valley campus in Ironton, MO.
These credits are issued at a 70% rate due to the economic conditions of Iron County and thus have a net value to Baptist Homes of $500,000. Renovations will include creating a series of efficiency suites on the second and third floors of the historic Riggs Scott Building.
NAP tax credits are used to offset an eligible donor’s state income tax liability and are claimed when the donor files their Missouri tax return. The credit may be used against taxes owed for the year of the donation plus five additional tax periods. As a simple illustration, a $5000 donation will reduce a Missouri State Tax obligation of $5000 to $1500.
The Missouri Neighborhood Assistance Act makes this credit available to any person, firm, or corporation with business income in the state of Missouri. Any qualified person, firm, or corporation in business in Missouri is eligible to receive credits, including individuals who operate a sole proprietorship, operate a farm, have rental property, or have royalty income, as well as a shareholder in an S-corporation, a partner in a Partnership or a member of a Limited Liability Corporation.
For more information about these giving opportunities, please contact Director of Advancement Nick Davis at ndavis@bhhm.org.
