John Haymes Mills saw the plight of indigent children in the aftermath of the Civil War and wanted to provide appropriate support. With a devout faith in the value of each soul, his compassion for orphaned children was unwavering. John channeled his concern into action by founding Mills Home in Thomasville (later known as Baptist Children’s Homes) as a haven for those in need, and welcomed Mary Presson, the first child in care, in 1885. His story remains inspirational after more than 125 years!
Today, Baptist Children’s Homes (BCH) ministers to children, adults, and families in more than three dozen communities across NC and SC, as well as in Guatemala and the Philippines. John’s dedication to using his resources to serve the Lord has helped change the lives of tens of thousands of children and families. This is a shining example of how one person can make a profound difference in the lives of others. Following in his footsteps, you too can make money work with a mission!
BCH supporters can maximize their Kingdom giving by utilizing non-cash assets and tax-efficient contribution methods. Consider these seven helpful strategies with your financial advisor and/or BCH Development Officer:
Donating Appreciated Securities: Giving long-term, appreciated securities rather than cash can avoid potential capital gains taxes, allowing you to give more at the same net cost. With certain limitations, donors may receive a fair-market-value tax deduction on securities donated to a charitable organization.
Bunching Contributions to Itemize: By “bunching” larger-than-normal charitable contributions into a single year, a taxpayer may benefit from itemizing that year, before returning to the standard deduction in a subsequent year when the threshold is not exceeded.
Utilizing a Donor-Advised Fund (DAF): Consider establishing a DAF to streamline your charitable giving. Grants may be recommended to specific charities over time. Donor-advised funds may be appealing to investors seeking to “bunch” larger-than-normal deductions in a particular year, and desiring to make future grants to favorite nonprofits.
Making Qualified Charitable Distributions (QCDs): For individuals aged 70½ or older, making direct transfers from an IRA to a qualified charity can satisfy Required Minimum Distributions (RMDs) up to $105,000 without incurring taxable income.
Funding a Charitable Gift Annuity from your IRA: The SECURE Act 2.0 enables those over age 70½ to make a one-time QCD from an IRA to fund a Charitable Gift Annuity (CGA). Individuals may transfer up to $53,000, and annual payments to the donor will be taxed as ordinary income.
Gifting Real Estate: Donating real estate unhindered by debt can yield tax advantages. Donors can potentially receive a charitable deduction based on the property’s fair market value while avoiding capital gains taxes.
Legacy Giving: Gifts of bequests, trusts, or endowments to charity can provide a lasting impact on your most treasured causes and reduce your taxable estate. Establishing a Charitable Remainder Trust (CRT) allows donors to receive an income stream from the trust for a period of time, with the remainder going to a charitable organization. A CRT may provide immediate tax benefits while supporting your philanthropic goals and providing supplemental
income. Imagine the joy of knowing your philanthropic vision can continue beyond your lifetime!
One reminder: many income tax and estate tax provisions are expected to be negatively affected at the end of 2025 due to the planned “sunset” of the 2017 Tax Cuts and Jobs Act (TCJA).
Planned changes could have adverse implications for your personal finances and will likely bring increased demand for planning. Take time to make your money work with a mission!
About the author:
Jay D. Westmoreland, CFP®, CAP® serves as Executive Director of Wealth Management, Senior Portfolio Management Director, and Financial Advisor at Morgan Stanley in Charlotte.
He is a leader in the firm’s Christian Focus Group and a past Chair of the BCH Board of Trustees. He was instrumental in founding the newly dedicated River Hill Refuge foster care program in Shelby, NC.
The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC www.sipc.org. Jay D. Westmoreland may only transact business in states where he is registered or excluded or exempted from registration. Transacting business, follow-up, and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Jay D. Westmoreland is not registered or excluded or exempt from registration.
For more information, please visit his website: https://advisor.morganstanley.com/jay.westmoreland.
Morgan Stanley Smith Barney LLC
Morgan Stanley, its affiliates, and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning, and their attorney for matters involving trusts, estate planning, charitable giving, philanthropic planning, or other legal matters.
Morgan Stanley Smith Barney LLC. Member SIPC, CRC # 6682681 6/24
Written by Jay D. Westmoreland, CFP®, CAP®