As you reflect and brainstorm about ways you may give to the Sustaining God's Grace campaign,you may want to consider some of the ideas* below. (Or download a flyer here.)
If you are wondering when the pressure will begin - don't worry - giving is a part of worship, and it must come from your heart to praise God - not from a checkbook just to satisfy a program. You will never be told what you should give... not at any point in the program. Your financial involvement is a decision between you, your family and God. Give joyfully!
Please be in prayer as you consider the following ways to give. Remember "He will always make you rich enough to be generous at all times, so that many will thank God for your gifts which they receive from us." (2 Corinthians 9:11)
Most often, when we think of making gifts to Grace United Methodist Church and others, we naturally think of giving from our income. However, as we prayerfully consider sacrificial giving to help Grace during this capital stewardship program, we have an opportunity to reflect on other sources for giving as well. Often, these other forms of gifts offer additional benefits to the donor.
Types of Outright Gifts
- Paid-up Insurance Policies
- Personal Property
- Publicly Traded Securities
- Real Estate
- Closely-Held Stock
- Charitable Lead Trusts
- Deferred Gifts
Paid-up Insurance Policies
Many times, families have paid-up life insurance policies that were originally taken out to cover mortgage expenses or pay for college for a child. If these reasons are no longer an issue, a paid-up insurance policy can be a wonderful way to make a gift to the church. The tax deduction is equal to the replacement value or the donor’s cost in the policy, whichever is less. The church will have the option of retaining the policy or taking the current cash surrender value.
One can make a gift of personal property to Grace United Methodist Church to help support the program. These items can include antiques, works of art, jewelry, coin or stamp collections, as well as other valuable assets. However, these items are generally tax deductible at their base cost and not their fair-market value. These gifts will be sold and the proceeds will be applied toward the capital program.
Publicly Traded Securities
Long-term appreciated capital gain property (such as stock) is one of the most common ways to make additional capital gifts. These gifts are tax deductible at the full fair-market value subject to some limitations. However, the gain is not subject to taxation to the donor or the church.
Example: Donor paid $2,000 for stock now worth $10,000. If donor sells stock, he/she pays $1,600 in capital gains taxes and keeps $8,400. If donor gives stock to church, neither donor nor the church pays taxes and donor receives $10,000 tax deduction.
For information or questions about transferring publicly traded securities, contact Pastor Gary Ford at 347-7131.
Appreciated Real Estate
A gift of real estate will generate a tax deduction for the full appraised fair-market value. Like securities, the capital gain is not taxable to the donor or the church. Sometimes a donor has a parcel of real estate that they are willing to gift, but they want to retain some of its value for themselves. A bargain sale is a good way to make a gift to the church and keep some of the value.
Example: Donor has a parcel of real estate worth $100,000. He/she sells the property to the church for $50,000. The donor has made a charitable gift of $50,000 to the church and received cash for him/herself. The tax deduction is equal to the difference between the selling price and the appraised price.
Gifts of closely-held stock are virtually the same as publicly traded securities, but may carry additional benefits to the donor. Along with the income tax deduction, gifting closely-held stock is a good way of reducing company-retained earnings and transferring ownership of the company to children or grandchildren.
Charitable Lead Trusts
A lead trust can be established to provide income to the church for a specified term of years. After the term of years, the assets in the trust revert back to the donor or to individual(s) designated by the donor. Cash, securities and some types of real estate can be used to fund the trust. There is no income tax deduction for this type of gift, but there is an estate tax savings.
Deferred gifts are gifts that are received sometime in the future by the church. During that time the donor retains an interest in the assets.
- Estate Notes
- Charitable Remainder Trusts
- Charitable Gift Annuities
- “Pay on Death” Accounts
- IRA Beneficiary
- Life Insurance
*This information is for informational purposes only and does not constitute individual financial, investment, tax, accounting or legal advice. For more information on ways to give, contact the Leadership Team.