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Creative Strategies for Giving

By December 4, 2018No Comments

Not equal giving, but equal sacrifice

Equal giving is never the goal at our church, but rather to come together as a church community—each sacrificing to achieve our vision. There is a role in this capital funding campaign for every member of the church and each contribution enables our success. You will not be pressured or told what you should give, bur rather encouraged to pray to discern God’s will for your giving. We ask everyone to pray the campaign prayer:

“Lord, what do you want to do through me?”

Gifts other than cash

What are gifts other than cash?

Gifts other than cash include stocks, bonds, annuities, property, and other assets.

What assets can I give?

Appreciated assets held more than one year, such as as publicly traded stocks, mutual funds, bonds, real estate, collectibles, and other readily marketable property often provide tax advantages.

Personal property such as automobiles, jewelry, and other items may also be given. 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 directly to the church allows the church to sell the asset, thereby eliminating potential capital gains taxes to the donor. This also results in a larger gift to the church.

How does the tax benefit work?

Itemized deduction: The donor 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.

Because of its tax-exempt status, the church will receive the full market value, less transaction costs, at the time of sale without paying capital gains taxes.

How do I give assets, such as stocks, bonds, and mutual funds to the church?

  1. Contact the church office. We will provide you with the transfer instructions.
  2. Contact your broker and request the transfer. You will be provided with stock powers or transfer papers to complete the transfer.
  3. When you have completed the transfer, please notify the church office.

Special tax-free IRA gifts

For those aged 70 1/2 or older, it is now possible to make tax-favored charitable gifts from traditional and Roth IRA accounts. A total of up to $100,000 per year can be transferred directly from traditional or Roth IRAs to one or more qualified charities, such as the church, free from federal income tax. There may also be state income tax savings. Donations given in this way count toward required IRA minimum withdrawal amounts for the year of the gift. To donate from a Roth or traditional IRA, it is important to make the donation directly from the IRA to the church. For those with check writing privileges on their accounts, this may be the most efficient way to make gifts directly from an IRA. Contact the church office or your tax adviser for more information.