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The Offering Circular helps you make an informed investment decision. It includes the history of AGFinancial, its policies and procedures, and last three years of financials. When you open an investment, you agree to the Offering Circular’s terms and conditions.

To change your beneficiary(ies), complete the correct form below and return it to our office.

IRA Beneficiary Form

403(b) Beneficiary Form

View 403(b) contribution limits

Access your account(s) and/or investment(s) is permitted via a completed authorization form, signed by your institution’s authorized signer (senior pastor for churches) and submitted to Client Services by email, fax, or mail. The form may be obtained by contacting Client Services.

To see your accounts or investments online, you must first set up a user ID and password. Enter your full SSN as your temporary User ID and the last four digits of your SSN as your temporary password. You will then be taken through the online access setup where you will create a new user ID and password.
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If you forget your user ID and/or Password, contact Client Services at 1.800.253.5544 or email ClientServices@agfinancial.org.

A portion of your mortgage interest dollars go to the support of AG churches and ministries across the country, helping them to grow and advance the Kingdom. With AGFinancial, you have a partner in ministry whose values align with yours, and you can be assured that your interest dollars contribute to ministry growth.

With a construction loan, the total loan amount is approved at closing, and all documents are prepared and signed at closing. The church can then borrow up to the approved amount during construction by drawing funds from our office. These draws are reviewed by our Construction Loan Project Manager, who will ensure that the amount is in line with the work being completed. At the end of each month, the church is billed only for the interest on the amount that has been drawn up to that point. Our Project Manager may visit the site to meet with the clients and General Contractors, and to help keep the project on schedule and on budget. This service is included in the loan fees. When construction is done, the loan is transitioned over to a permanent loan with regular monthly payments.

Terms can be as long as 25 years. However, we often advise against such long terms because of their higher interest cost to the church over the life of the loan.

As a rule, with complete information and documentation, a loan can be approved within 30 days and funded within 30 days following approval. This timeframe varies based on committee schedules and how quickly third-parties such as title companies and appraisers complete their work. Turning in all documentation with your application and staying in touch with the escrow company helps prevent delays.

We offer a full range of loans:

• permanent first mortgage loans (refinance, purchase, improvements)
• construction draw first mortgage loans (improvement/construction loan with guaranteed take-out to permanent)
• new church plant loans

See Types of Loans for details.

In the world of commercial lending, a long-term, fixed-rate mortgage loan generally does not exist. Lenders often use the term “fixed-rate” to draw potential borrowers to short-term loans. However, even though the rate is fixed, it is only for that short-term. At the end of the term, the full loan amount must be paid. This large final payment is called a balloon payment.

In contrast, we offer long-term permanent loans, which provide stability to churches and ministries. Our mortgage terms are up to 25 years, with rate adjustment periods of one, three, five, or seven years. We also provide interest rate caps on how high your rate can go—a guarantee you will not find with short-term mortgage loans.

We will use a copy of the district’s Articles and Bylaws.

We will need a Schedule of Values form (firm cost estimate with specific line items for cost overruns and contingencies), architectural drawings, a floor plan with elevations, and other documents as needed.

We offer a range of options based on the needs of your church. To learn more about loan options, read How to Shop for a Church Loan.

You may not. We attempt to establish property values through tax records, insured values, real estate market analysis, and other methods. However, on new construction loans over $1 million or when the collateral ratio appears to be outside our policy levels, we often need an appraisal. In most cases, a summary appraisal is enough.

Our current policy is to impose an early redemption penalty of 2% of the principal amount of the investment certificate redeemed prior to maturity. Term certificates allow investors to borrow against their balance; contact us for more information.

AGFinancial investments are not insured or guaranteed by SIPC, FDIC, or any other federal or state authority or regulatory agency, or any other person or entity. No AGFinancial investor has ever experienced a loss of investment or missed receiving an interest payment. However, as with any investment, past performance is no guarantee of future returns.

In most states, any resident can invest and Assemblies of God affiliation is not required. Please refer to the Offering Circular for state specific requirements for Alabama, Arizona, Arkansas, California, Georgia, Idaho, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Pennsylvania, South Dakota and Tennessee.

You may open an investment with a personal check or by electronic transfer from your bank. The minimum balance for the AGFinancial Demand Certificate is $250. All other investments require a $500 minimum. There are no annual fees. Premium rates may be available for individual investments of $250,000 or more. Open an investment.

When an owner(s) dies, the primary beneficiaries become the owners of the investment. If the primary beneficiaries are deceased, ownership goes to contingent beneficiaries.

Monthly automatic investments can be made to Demand Certificates and Adjustable Rate IRAs. The minimum for each is $50 per month.

Interest accrues daily and compounds monthly.

A maturity notice is mailed approximately 30 days prior to the investment’s maturity date.

Redemptions must be requested in writing and the requests must be signed by the owner(s) or other authorized parties. Requests can be mailed, faxed to Client Services at 417.520.3606, or scanned and sent as an email attachment to ClientServices@agfinancial.org. Redemptions for Term Certificates are available by check, bank wire, or Electronic Funds Transfer (EFT) with proper authorization forms on file with AGFS. Demand Certificates also allow for redemption requests by phone and through Online Access if two signatures are not required.

You can make an additional investment to your Demand Certificate at any time with a personal check or electronic transfer from your bank. Funding your Demand Certificate by electronic transfer can be done through Online Access. Adding funds to all other AGFinancial Investments can be made only when the investment reaches maturity. Upon maturity, you will have a 10-day grace period to add funds to your existing investment.

The Demand Certificate is a variable rate investment with an indefinite maturity redeemable within 30 days after demand. A minimum balance of $250 must be maintained.

The fixed rate is fixed for 5 years. The adjustable rate is subject to change monthly.

For Demand Certificates and Term Certificates (6 months to 5 years), interest can be paid monthly, quarterly, semi-annually, or annually. A minimum balance of $10,000 is required for monthly payments. For IRAs, any amount can be paid monthly, quarterly, semi-annually, or annually.

A minimum balance of $250 must be maintained for Demand Certificates and all other investments must maintain $500 minimum in order to keep the investment open.

No. MBA is the employer plan endorsed by the General Council of the Assemblies of God. Like all employer plans, you must be an employee of an Assemblies of God institution or church to participate. Credentialed Assemblies of God ministers are automatically allowed to participate if they have ministry-earned income.

The IRS requires employers to have a written plan. The written plan outlines what the organization intends to offer their employees. Contribution details, such as making an annual rather than monthly contribution to the 403(b) plan, should be stated in your plan.

As long as you are following the terms of your plan including administration, timely remittance of deferrals, and monitoring contribution limits, you will remain in compliance. If you make changes to the provisions of your plan, you will need to submit the revised document to MBA.

View more compliance details

Employers must submit a written plan and a service agreement. The written plan outlines what the organization intends to offer their employees. This may include how much the employer will contribute, when the contributions will be made (e.g. monthly, yearly), and other plan rules. The service agreement identifies the roles and responsibilities of the employer and MBA.

For more information see IRS 403(b) Compliance

Our program is not set up at this time to receive double or additional payments. Monthly payments must be made via ACH/bank draft or you can pay your loan in full at any time. Please contact our office to confirm your current loan payoff balance before sending payment.

A loan can take as little as a week to process. ACH distributions are usually deposited in bank accounts on Tuesdays and Fridays Paperwork must be in our office four working days prior to the expected deposit date. We must have a completed loan application and other documentation from you to start the process. More information »

There are no limits on contribution amounts for a 409A Plan other than that you must fulfill, but cannot exceed, the annual contribution election filed by your ministry. Contributions, along with other pay, may not exceed what the IRS would consider reasonable compensation.

A 409A is a Deferred Compensation Plan. This plan has no contribution limits, but is much more restrictive than the 403(b) plan. More information

Retired ministry employees:
No. Social Security and Medicare (FICA) taxes are not required on retirement distributions.

Retired ministers:
Retired ministers may not have to pay Social Security and Medicare (SECA) taxes on 403(b) distributions designated as housing allowance by MBA. Ministers should consult a qualified tax advisor regarding their personal situation.

You may delay receiving distributions until April 1 of the year you turn age 70 1/2 or retire, whichever is later.

Distributions that are free from tax and penalties can be made when the Roth 403(b) has been open for the 5-taxable-year period of participation and one of the following events happen:

• You reach age 59 1/2
• You become disabled
• Your beneficiaries receive distributions upon your death

You may have a distribution (and in some cases are required to take a distribution) when you no longer have credentials with the Assemblies of God and/or when you sever employment from an Assemblies of God employer. These distributions are taxable and are subject to penalty. It is important to note that the allowances for distribution of Roth 403(b) accounts, including distributions of principal, are different than the allowances for Roth IRA distributions.

Tax laws and plan restrictions put limitations on when you can take distributions from your 403(b) retirement funds. You can withdraw traditional after-tax (but not Roth) funds and balances from rollovers at any time. Please be aware that taxes and a 10% early withdrawal penalty may apply to the taxable portion of the distribution.

All other 403(b) funds can be accessed only in the following situations:

• Severance from employment (termination of Assemblies of God credentials)
• Attainment of age 59 1/2
• A total and permanent disability
• For a financial hardship as defined by law and the plan document
• For your beneficiaries at your death

Assemblies of God Ministers Benefit Association (MBA) does not charge you a penalty. If you are under 59½, you may incur a 10% IRS penalty for an early distribution. If your distribution is not covered by clergy housing, you will incur a 20% mandatory IRS withholding. This is not a penalty. There are exceptions to the IRS penalty, such as a distribution after you have had a total disability as defined in Internal Revenue Code 72(m)(7).

There is no limit to the number of distributions you take in a calendar year. One periodic and one non-periodic distribution per calendar year is allowed without a charge. A periodic distribution is one that you take on a recurring basis, either monthly, quarterly, semiannually, or annually. A non-periodic distribution is a one-time distribution. A first-time start-up of a periodic distribution does not count as a change in your periodic distribution. Each distribution over and above your free requests for the calendar year is subject to a $50 fee. We also charge for special handling requests, such as bank wires.

Housing allowance can only be declared for income earned in the service as a minister. This is true of rollovers or transfers into MBA as well as monies contributed directly to MBA.

No. The IRS allows a designated housing allowance on distributions from retirement to the individual who earned the compensation on which the retirement contribution was made. If a credentialed spouse has ministry compensation, consider having your spouse open an MBA 403(b) account for him/herself. Also, consider designated Roth 403(b) contributions. A Roth account will allow your spouse to have qualifying distributions that are not taxable after your death.

Credentialed clergy and formerly credentialed ministers may receive their distributions from MBA as clergy housing allowance to the extent that they received the contribution and related earnings on compensation related to ministerial duties. It does not matter if the credentials are with the Assemblies of God or other denominations or fellowships. Proof of credentials is required. Housing Allowance cannot be declared on inherited retirement accounts even if it was from a spouse who was credentialed.

As the endorsed retirement plan of the General Council of the Assemblies of God, MBA is authorized to declare a clergy housing allowance on distributions paid to retired ministers. What constitutes “retirement” depends on an individual’s particular facts and circumstances. For example, if a minister is receiving retirement benefits from and making contributions to the same plan, the IRS may not consider that minister retired for purposes of the housing allowance and the favorable SECA tax treatment. Similarly, the IRS may not view a minister as retired if they have not had a meaningful break in service or change in work duties. In addition, the IRS may not view a minister as retired if they are age 701/2 or older and have filed the paperwork to delay a required minimum distribution from their retirement account. Ministers should consult a qualified tax advisor to address their personal situation.

Section 107 of the Internal Revenue Code allows “ministers of the gospel” to exclude some or all of their ministerial income designated by their church or church-related employer as a housing allowance from income for federal income tax purposes.

Learn More

Non-credentialed employees will still pay Social Security and Medicare (FICA) taxes on the amount that is contributed to a Roth account just as they do with the traditional pre-tax 403(b) deferral. Credentialed ministers should consult their own advisors to determine the taxability for SECA purposes on both the Roth and traditional pre-tax contributions.

You may elect to have your future contributions made as pre-tax contributions to the 403(b) plan. Any contributions that have already been designated as Roth contributions cannot be changed to pre-tax contributions.

You may contribute to both a Roth and traditional 403(b) pre-tax account in the same year. The combined contribution may not exceed the IRS established limits. View limits

A Roth 403(b) is similar to a Roth IRA in the following ways:

• Compensation used to fund a Roth is taxed before being contributed to a Roth account.
  Earnings grow tax-free.
• Qualified distributions are made tax-free and penalty-free. A qualified distribution is one where the Roth account has been open for the 5-taxable-year period of participation and meets other qualifications.

A Roth 403(b) is similar to a traditional 403(b) deferral contribution in virtually all other aspects. It is important to note that qualifications for a tax-free, penalty-free distribution differ between Roth 403(b)s and Roth IRAs.

If you are married, your spouse is your beneficiary unless he/she has waived that privilege in writing. Otherwise, your accounts with MBA are left to the beneficiary(ies) you’ve named and are on file with MBA at the time of your death. Individuals as well as a trust can be named as beneficiaries. When naming a trust, you will need to provide a copy of the entire trust document for our records. If you fail to make a beneficiary designation on your own, the MBA plan document determines your beneficiary. It is always best to name your own beneficiaries in consultation with your estate planning advisor. Download beneficiary form »

The beneficiary(ies) can either keep the funds with MBA (as long as each beneficiary 403(b) account balance is over $1,000) or receive the funds. To process a beneficiary distribution, MBA requires a certified death certificate as well as the completion of our forms.

Generally, no. The retirement account is an individual account. If your spouse has been granted certain powers of attorney, then your spouse can act on your behalf if you have provided a copy of the power of attorney form to us.

When completing the enrollment form, your spouse does not need to sign the consent form unless you are naming someone other than your spouse as a primary beneficiary. On payout distributions, spousal consent is always required.

Click here to view How to Read Your Retirement Statement. If you have additional questions, please contact Client Services at 1.800.622.7526 or email ClientServices@agfinancial.org.

You may make changes to your investment allocations online or by written request using the Investment Change Form. Once the form is completed, submit it by email, mail, or fax using the information provided on the form. For written requests, you will receive a letter confirming when the change has been made to your account.

For your protection, changes cannot be made by phone.

Our 403(b) retirement plan offers a variety of investments in each strategy for diversification purposes. You can read about the underlying investments in the prospectuses and fund descriptors.

If you file or are eligible to file a Schedule C for your federal income taxes on your ministry related income, you are likely eligible to contribute to the AG retirement plan as a self-employed minister. Consult your own tax advisor to determine your self-employment status in this situation. Credentialed ministers who file taxes as self-employed for income and SECA tax purposes may not qualify as self-employed for contribution purposes if they are considered common law employees of an Assemblies of God ministry.

Chaplains and other Assemblies of God credentialed ministers who are employed in ministry by a non-Assemblies of employer may participate in the plan through their employer or by their own check. You can mail your contribution using a personal check by noting your status as a chaplain on the form.

The contribution may be named as an elective pre-tax deferral, a Roth after-tax deferral, an employer contribution, or a traditional after-tax contribution. The 403(b) contribution limits apply and are based on income from ministry work. You can deduct pre-tax deferrals and employer contributions on your federal income tax return. Consult a tax professional for guidance.

You may contribute with a personal check if you have compensation as a credentialed minister and receive a 1099-MISC form or if you are employed as a credentialed minister at a non-Assemblies of God employer. Please consult your tax advisor. All other contributions must come from an Assemblies of God employer.

View 403(b) contribution limits

You may make changes to your investment allocations online here or by written request using the Investment Change Form here. Once the form is completed, submit it in person or by mail or fax using the information provided on the form. For written requests, you will receive a letter confirming when the change has been made to your account.

For your protection, changes cannot be made by phone.

Planned Giving is a process that integrates the personal, financial, and estate planning goals of donors with their desire to create current or future financial gifts for charitable purposes. Some planned gift options, like bequests, are very straightforward and are made by a designation in a Will or Trust. Others require additional planning and are designed to create present or future income stream for the donor or other beneficiaries, tax savings for the donor, and a legacy gift for ministries or charities.

A Donor Advised Fund is a flexible giving device that can accept tax-deductible charitable contributions of cash, securities, appreciated real estate, or other marketable assets, and then distribute funds immediately or over time to charitable 501(c)(3) organizations with the donor’s input. Assemblies of God Foundation acts as custodian of the donor advised fund and distributes income and/or principal with the advice of named advisors to the fund. Individuals, couples families and organizations can use a donor advised fund to create an immediate charitable tax deduction while creating a pool of funds to be given away immediately, over time, or someday in the future. A Donor Advised Fund should be considered by those individuals or families who are interested in avoiding the regulations and complexities surrounding private foundations. A Donor Advised Fund can also be designed to act as the charitable recipient of distributions from revocable or tax-beneficial irrevocable charitable trusts.

A Charitable Remainder Trust is an irrevocable trust designed to receive property, whether it be cash, securities, appreciated real estate, or other marketable assets, and then use that property (through sale or management of the property) to create an income payment that can continue through the life of the Donor(s) and up to twenty (20) years to third parties. The funding of the trust typically creates an immediate charitable tax deduction, and long-term capital gain property sold through the trust avoids imposition of upfront capital gains. During the term of the trust, income payments are payable to named parties in either fixed or annually adjustable amounts, and upon the termination of the trust’s term, the remainder of the trust principal is transferred to a named ministry, charity or a donor advised fund chosen by the donor. A Charitable Remainder Trust is an excellent alternative to an outright sale of appreciated securities, real estate or other marketable assets due to its charitable and capital gain tax benefits, but it can also be funded with cash to achieve a charitable tax deduction.

A Charitable Gift Annuity is a contract wherein an individual or couple transfers cash or securities to the Assemblies of God Foundation in exchange for a promise to pay the donor(s) for the rest of their lives. Payments and rates are calculated based on the life expectancy of the donor(s). Charitable Gift Annuities are typically most beneficial to seniors who want certainty and stability in their income stream. Creation of a Charitable Gift Annuity typically creates an immediate charitable tax deduction for the donor(s), and payments are backed by the issuing entity. Upon the death of the donor(s), Assemblies of God Foundation will distribute 50% of any remaining amount of principal to the church, ministry or charitable organizations designated by the donor(s). Charitable Gift Annuities are available in most states, but there are a few exceptions.

Assemblies of God Foundation offers planned giving tools such as Wills, Revocable Trusts, Charitable Remainder Trust, Charitable Gift Annuities, Endowments, Donor Advised Funds, and more.

The major difference is in the calculation of the payments to be paid to the income beneficiary(ies) of the trust. Payment calculation of a Charitable Remainder Trust is dependent on the valuation of the assets of the trust, and an annuity trust payment is based on a single valuation while a unitrust payment is based on recurring valuations. Annuity trust assets are valued at the time the assets are placed in the trust. The trust assets are never revalued. Annual payments remain the same, whether the assets appreciate (increase in value) or depreciate (lose value). The assets in the unitrust are revalued annually. If the trust assets appreciate, the payments to the income beneficiary(ies) will increase. If the trust assets depreciate, the payments will decrease based on recurring valuations.

A Deferred Gift Annuity is created when a gift of cash or an appreciated asset is given to charity in exchange for fixed payments to the donor for life, with payments commencing at a determined future date.

If the annuity is originated as a two-life annuity, it will continue to the surviving beneficiary. After the life of the surviving beneficiary the gift is then made to ministry.

When the funds are placed into the account.

An Endowment allows you to continue to bless the ministry of your choice on a permanent basis. It’s a planning vehicle that provides the ministry with an annual payment that it can count on every year. An endowment requires that the principal remain intact indefinitely—or until sufficient assets have accumulated. The intact principal is invested to create a source of income for your chosen organization or ministry.

Coinsurance is the percentage of insurance to the property value. Most companies require that a coinsurance rate of 80% or 90% of the property value be in place at the time of a loss. If this percentage is not met, a coinsurance penalty may result in the event of a claim. For example, if your property is worth $100,000 and the coinsurance requirement is 80%, there would need to be at least $80,000 of coverage in place to pay a claim without incurring a penalty. This penalty could be costly. It is determined by taking the amount of coverage you have and dividing it by the amount of coverage you should have according to the coinsurance requirement. Continuing with the above example, if you have $40,000 of coverage instead of $80,000 (50% of the amount required), the insurance company may penalize you by paying only 50% of your loss.

To avoid a coinsurance penalty, ask your agent for an Agreed Value endorsement on your policy, in addition to insuring your property according to its replacement cost. This endorsement waives any potential coinsurance penalty. There is a small additional cost with most insurance carriers to add this endorsement.

Agreeing to be named as an additional insured splits your liability with the other party. As a result, your insurance may have to provide defense if the other party is negligent.

Workers’ compensation insurance is needed for all churches. It is not subject to a deductible and includes medical payments for all employees as well as disability payments until the employee can return to work.

Most churches should secure coverage based on the replacement cost value. This will provide enough coverage to rebuild facilities or replace property with new items of like kind and quality. Make sure your agent does a Mitchell Swift Appraisal to determine the replacement cost for your building.

Churches may choose actual cash value if the facilities are in disrepair or the church would never rebuild that type of building. Agents determine this value by taking the amount to replace the building or contents and then subtracting the accumulated depreciation.

Key man insurance is a life insurance policy for one or more lead pastors, administrators, etc. A key man policy is owned by the ministry and is meant to help compensate the ministry for the death of one of its key leaders. The death benefit can help a church show financial strength to creditors, conduct a proper search for a replacement without worrying about immediate financial needs, and promote a general succession plan.

Ministries should consider a key man policy for the following reasons and circumstances:

• To insure the life of any employee who has exceptional knowledge of the intricacies of the ministry
• When the reputation of the church is directly tied to the charisma of the pastor
• If a bank or lender is requiring a guarantee on their business loan(s)

To see how much coverage you need, check out Losing a Leader: How Key Man Insurance Can Help a Church Recover.

Every church needs two types of insurance: property and liability (casualty). Property insurance covers the things the church owns and should be calculated based on what it would cost to replace them (replacement cost value). Liability insurance covers actions that could leave the church liable for damage to others, including injuries, possessions, and reputations. In our experience, it is crucial for churches to have at least the following liability coverages:

• General
• Sexual misconduct
• Directors, officers, and trustees (DOT)
• Business auto
• Hired and non-owned auto
• Pastoral counseling
• Workers’ compensation

For more information about property and liability insurance and to understand how much coverage your church needs, download The Church Insurance Guide.

Risk management is the process of assessing the likelihood of an accident and its potential financial impact on your church—increased insurance premiums, damaged reputation, financial settlements, legal fees—and then taking steps to help prevent the accident before it happens. But more than just helping you avoid an expensive lawsuit, risk management is about protecting those to whom you minister. You’ve been entrusted with providing a safe place for people to learn and worship. Comprehensive risk management policies both maximize the safety of your congregation and minimize liability for your church.

For Church Mutual policy holders, call 800.554.2642, option 2.

For all other claims, contact us at 866.662.8210 or info@agfinancialinsurance.com.

For Standard Group Life Insurance questions, call Innovo Benefits Administration at 800.829.5601.

For Church Mutual policy holders, call 800.554.2642.

For all other billing questions, contact us at 866.621.1787 or info@agfinancialinsurance.com.