<![CDATA[Northwest Compassion Foundation - Blog]]>Wed, 23 May 2012 11:06:20 -0800Weebly<![CDATA[Giving More by Giving Wisely Seminar Summary]]>Sun, 20 May 2012 18:59:50 -0800http://www.nwcompassion.org/1/post/2012/05/giving-more-by-giving-wisely-seminar-summary.html Christians give for one or more of the following reasons:

Biblical motivations of giving
• Obedience
• Rewards
• Recognition of God’s ownership
• Love of God and love of others
• Giving breaks the power of money

The following are some key Scriptures and principles that we can apply to our lives.

Biblical principles of stewardship
• God is the owner and we are the stewards − Haggai 2:8, Psalm 24:1, Psalm 50:10
• Held to account − Luke 19:12-26, 2 Corinthians 5:10
• Treasure principle − Matthew 6:19-21, Mark 10:21, Luke 12:33, 1 Timothy 6:17-19
• Live simply to joyfully give generously − 2 Corinthians 9:6-11, Psalm 62:10, Luke 12:15- 21, Proverbs 30:8-9

The world doesn’t understand our motivation and the result is quite different as the following table illustrates.

Generosity: A worldview issue

World’s View

Everything is mine

I must provide for self and family


Abundance from success is to my credit


More is better

Life is short, go for the gusto

Give obediently, sparingly, cautiously, with an eye to my needs and my future

Financial decisions are just business, maximize gain and control

Results

Worldly wisdom: proud, cynical, selfish

Biblical View

Everything belongs to God

Provision vs. Protection – We are to provide, but He is the ultimate source and protector

He alone gives us the ability to prosper – the purpose of wealth is to meet needs

Bigger barns are foolish

Life is short, lay up treasures in heaven

Sow generously, cheerfully, abundantly, ready to give on every occasion

Every financial decision is a spiritual decision


Results

Mind of Christ: humble, gentle, generous
We need to ask some essential questions about giving.

The 4 essential giving questions
Who owns it all?
How much is enough?
How much is enough for the kids?
What should we do with the rest?

Answering these questions will help us establish our financial finish lines – our lifestyle, our net worth, and our inheritance.

With these basics covered, Kendra then told us how to give more and pay less tax.

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Asset-based giving
What assets are good candidates?
• Business Interests
    • S-corporation stock
    • Partnerships and LLCs
    • Closely held C-Corporation stock
• Real Estate
     • Residential
    • Commercial
• Precious Metals
• Loan Notes
• Life Insurance

Only a select group of Christian business leaders have the opportunity to sell a company for a sizeable gain.
• You will likely only have a few opportunities to do this in your lifetime.
• Many have a heart to give charitably, but they don’t know where to turn for wise counsel in the midst of a liquidity event.

Benefits of giving before sale
• Maximize your liquidity event by preserving the full fair market value of the gifted asset for Kingdom investing
• Avoid or reduce capital gains taxes on the gifted portion, moving more dollars to ministry • Maximize your sale by leveraging the deductions reserved for non-cash assets (up to 30% of AGI)
• Reduce current-year income taxes via a larger deduction, providing increased cash flow

Few have the ability to sell a business like this, so more business owners make gifts of a share of their business and retain control of the business.

Charitable shareholder Many business owners:
• Have a heart to give charitably
• Hindered by limited cash flow and growing taxation

Benefits of giving wisely
• Unlock more dollars for ministry now, without waiting for a liquidation event
• Maximize available income tax deductions using non-cash assets (up to 30%)
• Reduce current-year income taxes, increase cash flow
• Avoid or reduce capital gains on the gifted portion if and when the business is sold
• Reduce estate taxes, since a portion of the business is owned by NCF (not your estate)
• Create innovative redemption opportunities (2nd generation, 3rd party, key employee, etc.)

Benefits of giving real estate
• Turn illiquid assets into more Kingdom giving (immediately after the sale)
• Preserve the full fair market value of the gifted asset for Kingdom investing
• Avoid or reduce capital gains taxes, moving more dollars to ministry
• Maximize your sale by leveraging the deductions reserved for non-cash assets (up to 30% of AGI)
• Reduce current-year income taxes providing increased cash flow
• Work with just one organization (NCF) but recommend grants to multiple ministries now or over time

Benefits of giving commercial real estate
• Unlock more dollars for ministry now, without waiting for a liquidation event
• Maximize available income tax deductions using non-cash assets (up to 30% of AGI)
• Reduce or avoid taxes on annual income from the gifted portion, providing increased cash flow
• Avoid or reduce capital gains on the gifted portion if and when the property is sold
• Reduce estate taxes, since a portion of the property is owned by NCF (not your estate)
• Create innovative asset transfer opportunities (2nd generation, 3rd party, key employee, etc.)

Stop writing checks
Maximize kingdom impact

If you are currently writing checks to your local church and various ministries, but also have various appreciated stocks or mutual funds in a taxable  investment portfolio, then:
• You will likely have a significant opportunity to pay less tax
• Give more
• Improve your personal cash flow
• Simplify your giving

Give more

TRADITIONAL GIVING USING CHECKS
1. Start with $10,000 in cash
2. Write checks to ministries for $10,000
3. Receive a $10,000 charitable deduction
4. Keep track of every tax receipt manually
5. Continue to pay capital gains tax in your portfolio (now or later)

MORE GIVING USING STOCK
1. Donate $10,000 of stock into your Giving Fund
2. Receive a $10,000 charitable deduction
3. Shares are sold by NCF tax-free, with proceeds placed in your Giving Fund
4. Re-fund your portfolio using $10,000 cash (reset basis!)
5. Use tax savings to give more!
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Impact of a new approach

Multiply your impact
• Less tax
• More giving
• Reset your cost basis
• Tax-free rebalancing
• Improved personal cash
• Tax-free growth

Simplify your giving
• Deduct now, grant later
• Leverage your time
• Eliminate the hassle
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Estate gift principles
• Once you decide how much is enough, you are free to give the rest
• There is no need to pay estate tax
• Estate tax exemptions are currently $5M for individuals/ $10M for couples
• Highly volatile topic however
• Charitable strategies can be used to avoid estate tax
• Charitable strategies can help move assets to the next generation
• Your professional advisers can help you plan efficient estate gifts that honor all of your goals while supporting your desire to give to NW Compassion Foundation

Benefits
• Remove taxable value from your estate
• Use that value to fund your favorite ministries now, or at the end of life
• Can gift non-controlling interest and pass control to heirs (IRS taxes value, not control)
• If done during life, can minimize income tax exposure year to year
• Reduce tax in favor of charity
]]><![CDATA[Dental Van’s 1st Day at CHCC]]>Sat, 31 Mar 2012 20:06:09 -0800http://www.nwcompassion.org/1/post/2012/03/dental-vans-1st-day-at-chcc.html March 27th was the first day that the Medical Teams International’s Dental Van came to Canyon Hills Community Church. It was a blessing to us to see the dental needs of patients being met. One young lady was very fearful that she was going to lose all her teeth. The dentist was able to fill her teeth and none had to be pulled. She was overjoyed and was simply beaming afterwards.

This was just one of the 12 people who were blessed by the clinic and the warm welcome they received from all the volunteers: greeters, coordinators, dental hygienist, dental assistants, and dentist.

Praise God for His abundant blessing in this work.

 Northwest Compassion Foundation is sponsoring the van and it will be here every 2nd Tuesday of the month.

]]><![CDATA[Mobile Dental Program]]>Thu, 16 Feb 2012 11:55:14 -0800http://www.nwcompassion.org/1/post/2012/02/mobile-dental-program.html
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The Northwest Compassion Foundation is working on sponsoring a Medical Teams International Mobil Dental Van to come alongside the disadvantage people who are using the Canyon Hills Community Church food bank as well as others in the area who need dental assistance.

On Sunday, Feb 26th, Medical Teams International will have a Mobil Dental Van in the church’s East parking lot during all three services. Stop by and see how this program fits in with the goals of Northwest Compassion Foundation and Canyon Hills Community Church. Information will be provided for those who would like to participate in coordinating patient registration. No dental experience is needed, only a heart to help those in need.

The mission of the Mobile Dental Program is to provide free or low-cost dental care to low-income children and adults, the homeless and migrant workers who lack insurance or a realistic way to pay for treatment. 
Mobile Dental Fast Facts:
     ◦ Mobile Dental has provided care for more 176,000 patients since 1989. 
     ◦ In 2010, they have provided free dental care to more than 17,000 patients with over 300 sponsors. 
     ◦ Nearly 900 generous volunteer dental professionals provided approximately $7 million worth of free dental
       care last year. 
     ◦ Their fleet of 11 Mobile Dental clinics in Oregon and Washington are 38-foot converted motor homes. Each
        mobile clinic contains two dental operatories and all necessary equipment, instruments, and supplies.

Through Medical Teams International, this program will provide urgent care dental services to low-income patients who lack dental insurance or any realistic way to pay for the care they need. Medical Teams International does not typically provide dentures, bridges, root canals, cleanings or other specialty services.





 

]]><![CDATA[Post Title.]]>Tue, 13 Dec 2011 14:32:32 -0800http://www.nwcompassion.org/1/post/2011/12/post-title-click-and-type-to-edit.htmlProverbs 31:20 Ministries held a Christmas Luncheon for over 200 women + their children December 10, 2011.  Northwest Compassion Foundation was honored to provide funding for the transportation used to bring these women and children from the shelters in the area.  It took hundreds of volunteers to put this event on.  The ladies and
their children were loved on from many perspectives:  they were fed an amazing meal, prayed over, ministered to through song, dance and hearing a message of hope, love and friendship, gifted with some special presents and treated with love and respect they so richly deserve.

Several of the women returned to the church on Sunday for the service, they felt drawn back to Canyon Hills. In addition, a case manager returned with her husband on Sunday. She has been seeking and feels as if she will find her answerds with us. She plans to bring her mother next week. Several new requests to mentor women were also received.
]]><![CDATA[Real Estate Seminar Summary]]>Sun, 13 Nov 2011 15:56:18 -0800http://www.nwcompassion.org/1/post/2011/11/real-estate-seminar-summary.htmlDustin presented a great seminar on Saturday. His information was very timely as he started the presentation with a history of the real estate market and predictions by analysts for the next few years. One of the biggest factors that will affect the market is lending institutions that are turning their repossessed houses back into the market. Analysts estimate this will keep home prices from a meaningful recovery for some time. There are still about 800,000 mortgages somewhere in the foreclosure process and another 1.5 million in serious delinquency, half of which could end up in foreclosure. 

Many people are in situations where they owe more on their home than its value. Of these, many are faced with economic, health, or job situations which are requiring them to sell their house. Others are not willing to wait for the market to turn around and want to sell now. 

Options for people who either need to sell their home or can’t continue to make payments are short sale, loan  modification, foreclosure, or bankruptcy. Most of the discussion centered on the first two options.

Some very important things were revealed in the discussions regarding a short sale:
o  If your loan is current, you are not eligible for a short sale.
o  You must be willing to ruin your credit score by defaulting.
o  You may need to sign a note for future payments or bring cash to the closing.
o  2nd lien holders can come after you financially unless a non recourse agreement is reached.
o  You will have to reveal all your assets, which can be used as ammunition against you if a short sales is not approved.
o  You believe that a loan modification will not work in your case.
o  You must explain and prove financial hardship

There was also a lot of discussion about loan modifications, which generally means that you still have equity in your home. If you don’t have equity, then you would have to pay down the current mortgage.

The foreclosure option means that your credit score is ruined. As in a short sale, 2nd lien holders can still pursue you. It is possible to continue to live in your home for one to two years before foreclosure is completed. Some institutions will even allow you to rent the home after foreclosure. 

Bankruptcy was not discussed as it would take another seminar.

Other thoughts that were expressed either by Dustin or those in attendance:
o  Reverse mortgages should be avoided.
o  Investing in a short sale to be used for rental property may be a good investment at this time.

Christian principles

Here are some Christian principles (from the Elders of Canyon Hills Community Church) regarding tough decisions about not being able or choosing not to fulfill a mortgage contract.

o  Sovereignty of God - Nothing can happen to you and your family without first being a part of God's sovereign
plan for you, your wife, and your children. Isaiah 55:8, 9; Isaiah 46:10; Romans 8:28-29; and 1 Corinthians 10:13 are all good verses to focus on to keep the right frame of mind as you go down this path trying to figure out what to do.
o  God's Provision - God has provided you with a roof over your head. He has promised to clothe, feed, and provide a place to lay your head. Being thankful for and content with what God has provided you is something that you need to make sure you are building into your family, not just your own personal life. Matthew 6:25-34 and Philippians
4:4-9 are great passages of Scripture to focus on in this area as you try to make a decision.
o  God's Glory - Remember that this is our goal in life. America does a number on us in this area. We can get so caught up in what society and culture say is the right thing to do and lose sight of the fact that our number one goal is to make sure that we are glorifying God in this life. As you are trying to decide where to go, we would encourage you to wrestle with the question of whether or not you want to be more comfortable in this life, or will moving produce a great opportunity to glorify God with your life and your family? 1 Corinthians 10:31 and 2 Corinthians 5:9 are two passages of Scripture that directly relate to this and would be good through which to read this decision.
o  Promises We Make - Ecclesiastes 5:4 and Matthew 5:33-37 both speak to the promises we make. Both sets of Scripture seem to indicate that we must follow through with the promises we make. We know that Ecclesiastes is more or less about promises to God, but signing your name to a promissory note as a representative of God (2 Corinthians 5:20) falls underneath this Scripture. If you made the promise to the bank and THEY do not want to change the contract you signed, then we don't think that you can or are biblically allowed to simply let the home go into foreclosure because it's now a "bad investment" for your family or you don't like it anymore, especially IF you can
afford it. There are a lot of people in the church that are in the exact same spot you are in.
o  The phrase above is underlined because it's a completely different story if the bank is willing to change the contents of the note. If they want to forgive the debt that's up to them, and there would be nothing wrong with that. To our knowledge there is nothing biblically wrong with a short sale, but keep in mind that it will damage your credit score and be a major impact if you go to buy a house later on down the road. As we stated though, if the lender agrees to modify the contract, then we don't see anything in Scripture forbidding you from doing that.

So what's our suggestion? We would encourage you to pray according to Philippians 4:4-9. We firmly believe that if you are faithful to do this, God will do something that is beyond what you can imagine or plan. Remember that He gives us the blessings (homes included) and simply asks us to be faithful with those blessings.

]]><![CDATA[Real Estate Seminar Coming in November]]>Sat, 17 Sep 2011 17:55:07 -0800http://www.nwcompassion.org/1/post/2011/09/real-estate-seminar-coming-in-november.htmlYou won't want to miss this chance to get your questions answered about this most uncertain aspect of our economy. Northwest Compassion Foundation is providing a free seminar to help with the following topics:
  • Short sales
  • Foreclosures
  • Negative equity
  • Mortgage relief
  • and others......
The seminar will be presented by Dustin Remington. Dustin is a Real Estate Broker with Re/Max Northwest in Bothell and has 20+ years experience selling homes.

Dustin and his wife Cindy and their four children are members of Canyon Hills Church for over 10 years.

The seminar will be held on November 12 beginning at 9:00 and lasting 1.5 to 2 hours. It will be at Canyon Hills Community Church, 22027 17th Ave SE, Bothell, WA 98021

Sign up on our Education Page.
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