Every cloud has a silver lining. There are two sides to every coin. The knife cuts both ways. The dire state of the economy has given rise to some of the best church stewardship opportunities seen in decades.

The Internal Revenue Service uses the “Section 7520 Rate” — commonly called the AFR — to calculate the income tax deduction you receive for a planned giving contribution to your church.

In March 2007, the AFR was 5.8%. It dropped to 3.6% in March 2008. In February 2009, it reached the lowest rate since it first went into effect in 1989: 2.0%.

But what, you ask, does this have to do with church stewardship? A great deal! Here’s an example.

If you are 75 years of age, and you have a $50,000 CD which pays 4%, you earn interest of $2000 per year. But that interest is taxable. Let’s assume that you are in the 15% tax bracket. Your tax will be $300, leaving you net earnings of $1,700. This is what you can take to the store to buy groceries.

You need more income. You have applied church stewardship principles to managing your money for most of your life. You would not be opposed to increasing your income and helping your church at the same time. In meeting with your financial planner, she suggests you look at a charitable gift annuity (CGA).

Church stewardship planning with a charitable gift annuity is a very simple, but effective way to plan. Here are the benefits of moving the $50,000 from a CD to a CGA:

1. Your income will increase from $2,000 a year to $3,150.

2. 78.7% of the $3,150 is not subject to tax. Bottom line: More money for groceries.

3. When you die, your church receives the $50,000. You accomplish the goal of leaving a significant church stewardship gift.

Let’s change the assumptions a little. Let’s say you were age 75 in March of 2000 and set up the same CGA when the Sec. 7520 rate was 8.0%. The amount excluded from tax would have been only 53.7%. Putting this church stewardship plan if effect today means you pay less income tax and have more money for to spend.

The take-a-way from this is that if you are interested in increasing your income, reducing your taxes, preserving your estate from undo taxation while simultaneously helping your church, it would be prudent to examine the various church stewardship techniques which may apply to your situation.

If you represent a church and are interested in raising more money for your ministries, it would be wise to communicate and publicize the church stewardship charitable plans that currently have high value due to the low AFR.

This is only one of several examples of how a church stewardship program and an individual member can benefit from a bad economy.