CREATIVE WAYS TO GIVE
By “thinking outside the box,” many people have found creative methods to increase their giving.
No decisions regarding giving should be made without consulting your tax professional.
WHAT KIND OF ASSETS SHOULD I GIVE?
Appreciated investment property held more than one year, such as publicly traded stocks, mutual fund shares, bonds, real estate, collectibles, and other such readily marketable property have tremendous tax advantages. Personal property such as automobiles, jewelry and other items may also be liquidated. There may be no capital gains tax benefits to these gifts, but the financial and spiritual benefits can be tremendous.
WHY GIVE GIFTS OTHER THAN CASH?
The tax code is very generous toward this form of giving. Giving the asset to the church and letting the church sell eliminates potential capital gains taxes and can increase the after-tax proceeds.
HOW DOES THE TAX BENEFIT WORK?
Itemized Deduction – The individual or business is allowed to include 100% of the market value of most such assets as charitable contributions for tax purposes if held more than one year. Capital Gains – The transfer of property does not generate a capital gains tax. The church, as a tax exempt entity, will realize the full market value, minus transaction costs, at the time of sale without paying capital gains taxes.
WHAT IF I SELL FIRST, THEN GIVE THE CASH?
You may be subject to capital gains taxes thereby reducing the after tax proceeds from the sale.
HOW DO I TRANSFER THESE GIFTS?
For stocks, mutual fund shares and bonds, if held “in street name”…
- Contact the church office. We will provide you with the transfer instructions.
- Contact your broker and request the transfer. You will be provided with stock powers or transfer papers to complete
When you have completed the transfer, please notify the church office.