edwards

Back in 2003, Jane Edwards was planning to give all her estate to the church since she had no close relatives or family, but she also had a very low income, not having a pension or social security. A gift annuity was the answer. By committing some of her planned gift before death, much greater income from those assets could result, while keeping the rest of her assets for security and emergencies.

Jane contacted the Oklahoma United Methodist Foundation to find out more about a charitable gift annuity and how it might create a better income stream from appreciated assets of stock and insurance cash values. Planned Giving Officer David Battles visited with her, bringing an her an illustration of a tailored gift annuity.

She put nearly $500,000 in a charitable gift annuity to create a $50,000 annual income stream from the gift. For her age of 90+, the rate for the annuity was 10.2%. This did four things:

- gave her ten times the income from the assets- from less than 1% to 10%+

- created a charitable remainder for Wesley United Methodist Church

- gave her a large income tax deduction

- stuctured the income for favorable tax rates

The Jane Edwards Endowment (unfunded) was created at that time, because the charitable gift had to be placed in a future endowment vehicle at the Foundation. The Perpetual Fund Principal Account could not be the vehicle at the time, because that was a management account and not a true endowment. (That account was made an endowment on July 17th, 2005, at a Wesley UMC Called Church Conference.)

At Jane's passing on August 20, 2005, the charitable remainder from the gift annuity was converted to the Jane Edwards Endowment with $475,947.66. This annuity remainder was added to by her bequests to the fund from her estate of $814,815.04. This total of $1,290.761.70 forms the corpus of the Jane Edwards Endowment. A 5% APR distribution from this endowment flows into the distribution accounts set up under the Perpetual Fund Distribution Plan.