Mississippi Baptist Foundation
Friday, June 05, 2020

MBF Charitable Giving Fund


The MBF Charitable Giving Fund (“CGF”) is designed to offer a simple, flexible, and tax-advantaged approach for providing financial blessings to Christian organizations whose mission is to make Jesus known through missionary, benevolent, educational, or charitable ministries and activities. To this end, the MBF Charitable Giving Fund is operated with the following guidelines and policies:
 

Guidelines

1.  The Mississippi Baptist Foundation (“Foundation") may serve as the administrator of any charitable giving fund in which at least one-half (50%) of the principal and/or income derived from the investment of the principal is distributed to advance the Gospel of Jesus Christ through (a) the Mississippi Baptist Convention (“MBC”)or any of the MBC’s ministries, affiliated churches, agencies, or institutions, and/or (b) the Southern Baptist Convention (“SBC”) or any of the SBC’s ministries, affiliated churches, agencies, or institutions. 
     In addition, up to one-half (50%) of the principal of a Foundation-administered charitable giving fund and/or resultant income may be distributed to any other evangelical, Christian organization which operates to promote missionary, benevolent, educational, or charitable goals and whose primary purpose and activities designed to achieve such goals and purpose are not inconsistent or in conflict with the purposes of the Mississippi Baptist Foundation, the Mississippi Baptist Convention, and the Southern Baptist Convention.
 
2.  The Foundation is authorized, empowered, and directed to administer a CGF in accordance with sound investment policies established and approved by the Foundation’s Board of Trustees and will exercise prudence in making investment decisions. The Foundation is granted full and complete authority, requisite, necessary, or advisable for the efficient discharge of prescribed duties and responsibilities. The Foundation reserves the right to accept or decline any new CGF account.
 

 

Policies


Contributions
  • The ministry supporter(s) acknowledge and understand that contributions to a CGF account are irrevocable gifts with ownership and custody of such funds and property being relinquished fully to the Foundation.
  • The Foundation requires an initial minimum gift of five thousand dollars ($5,000) for the establishment of a CGF.
  • All gifts must comply with Policies for Gift Acceptance as adopted by the Board of Trustees of the Mississippi Baptist Foundation. (See also “Eligible Assets”).
  • The Foundation will issue an acknowledgement letter to every ministry supporter for each gift presented to a CGF. This letter will serve as the ministry supporter’s gift receipt for income tax purposes.


Ministry supporters may make irrevocable gifts of cash and publicly traded marketable securities (stocks, bonds, mutual funds, etc.) to their CGF at any time based on the Foundation’s gift acceptance policies. Other types of gifts (real estate, closely held stock, or business interests, etc.) may be accepted but only after approval by the Foundation. The Foundation reserves the right to accept or decline any gift presented for a CGF account.
 

Note: A Charitable Giving Fund as presented in these policies and as administered by the Mississippi Baptist Foundation does not qualify for a Charitable IRA Rollover as outlined initially by the Pension Protection Act of 2006 and subsequently through the Protecting Americans from Tax Hikes Act (PATH) legislation in 2015.

 

Beneficiary Selection and Distributions
  • The Ministry Supporter(s) and/or survivor(s)/successor(s)/designated advisor(s) may at any time offer written suggestions or recommendations on the appropriate Foundation form to the Foundation regarding distributions from the (their) CGF.
  • Grant recommendations must be in amounts equal to or greater than $250.00.
  • All distributions from this CGF shall be made exclusively to organizations described in each of Sections 170(c), 170(b)(1)(A), 2055 (a), and 2522(a) of the Internal Revenue Code as amended and whose purpose is not inconsistent or in conflict with the Mississippi Baptist Foundation, the Mississippi Baptist Convention, or the Southern Baptist Convention.
  • The Ministry Supporter(s) acknowledges and understands that the Foundation shall consider each request for distribution in light of the Foundation’s purposes and goals of bringing Mississippi and the world to Jesus. The ministry supporter(s) acknowledges and understands further that (a) CGF distribution recommendations will not be binding upon the Foundation, (b) the Foundation will be under no obligation to make distributions from a CGF in accordance with such recommendations, and (c) the Foundation will make the final determination with respect to any and all distributions from a CGF account.
  • Charitable Giving Funds are not intended to become perpetual endowments. Therefore, the Foundation encourages ministry supporters to offer annual recommendations for distributions. Should no ministry grants be distributed from a CGF over a three-year period, then the Board of Trustees of the Mississippi Baptist Foundation will direct a distribution equal to the greater of two hundred fifty dollars ($250.00) or five percent (5%) of the average market value of the CGF over the previous three years to the Cooperative Program ministry budget as administered by and through the Mississippi Baptist Convention.
  • Should a CGF account have multiple ministry supporters and/or designated advisors, a distribution request by any one of the ministry supporters or advisors will be considered by the Foundation as representing the request of all ministry supporters or advisors. Should a recognized conflict arise regarding distribution requests from multiple ministry supporters or advisors, the Foundation may choose to allow each ministry supporter/advisor to present written instructions for only a portion of the CGF.
  • Prior to the ministry supporter(s’) death(s), the ministry supporter(s) may inform and instruct the Foundation regarding the transference of their right of advisement to other designated advisors. Such instructions may be presented to the Foundation on the appropriate form (Charitable Giving Fund Agreement Form, etc.) or through a notarized letter/statement to the Foundation.
  • Unless otherwise requested by the ministry supporter(s) and approved by the Foundation, at the death or incapacity of the surviving ministry supporter, the CGF will be administered in accordance to the last instructions given by the ministry supporter(s), or their named successor advisor. For CGFs having a market value (MV) equal to or less than $25,000 at the time of death or incapacity of the ministry supporter(s), however, the Foundation may choose to distribute the balance of the CGF outright to the charitable organizations and in the percentages outlined in the last instructions given. For CGFs having a market value (MV) greater than $25,000 at the time of death or incapacity of the surviving ministry supporter, the balance of the fund will be distributed according to the last instructions given or upon consideration of recommendations offered by an eligible successor advisor. Regardless of the market value of a CGF at the time of the death or incapacity of the surviving ministry supporter, however, the distribution of the balance of the CGF will not extend beyond ten (10) years following the death or incapacity of the surviving ministry supporter unless, and to the extent that, an eligible successor advisor(s) has become a/the ministry supporter(s) for the subject CGF.
  
Administrative Costs/Fees
  • Annual Fee - Each approved and established CGF will be assessed an annual account fee of fifty dollars ($50.00) to support maintenance of the account and up to five (5) grant distributions per year.
  • Additional Checks - An account will be assessed an additional fee of five dollars ($5.00) for each grant distribution in excess of the five included in the account maintenance support.
  • Other Expenses - Expenses associated with converting non-cash gifts to cash (real estate, closely held stock, business interest, etc.) will be borne by the CGF. In addition, the Foundation shall be entitled to assess a reasonable fee to the CGF for other administrative costs associated with the liquidation of such assets.
Note: Monthly investment earnings (interest) may be available to accommodate expenses associated with and assessed to a CGF.


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The items outlined above constitute the full and complete policies by and between the parties and all oral agreements and/or discussions are merged herewith and are null and void to the extent that they are in conflict herein, and no changes, alterations, additions, modifications, or qualifications shall be made or had in the terms, conditions or provisions of any paragraph or item of this agreement, except that the Foundation (through approval of the Board of Trustees) reserves the right to amend these policies to promote operational efficiency and to ensure that funds remain eligible for estate, gift, and/or income tax deductions within the parameters of Internal Revenue Code rules and regulations. Should issues of ambiguity, disputes, or questions regarding the application of funds or the operation and administration of the CGF, the Foundation shall have the sole discretion in decision-making and such decisions shall be final, complete, and binding.