The most important consideration of charitable giving is charitable intent. Charitable intent is the personal desire and intention of the donor to make a gift of value to a charitable organization. Of secondary importance are the financial issues, which may include tax considerations, estate planning concerns, or the type and size of gift. If there is a sincere desire and intent on behalf of the donor, almost any asset of value can be gifted.

The following is a brief list of gifting techniques which may be used. Many can be used together to structure a personal gifting plan for the donor. Excluded is a gift of cash since that needs little explanation.

Gifts of Appreciated Assets

A gift of investments assets that have appreciated in value is one of the most common gifting strategies. The asset should, in relative terms, be “substantially appreciated” if the giver wishes to receive tax benefits as a result of the charitable gift.

Gifts of Stocks and Bonds

Funding charitable giving with appreciated stocks or bonds can be very advantageous to both the donor and the church. The donor will avoid paying any capital gains taxes while receiving a full-value charitable deduction, and the church will receive a very liquid asset.

To claim all these benefits, the stocks/bonds must be transferred to the church rather than selling the stocks/bonds and donating the proceeds, which then turns the gift into an ordinary cash gift. Kairos or a tax accountant can advise you about the most advantageous way to make the transfer.

Gifts of Appreciated Real and Personal Property

Many people possess assets that could make a good gift to their church. This is a discussion worth having. One word of caution about real and personal property gifts: they should be discussed in advance with the church to determine the appropriateness of this action. For instance, unless the gift is germane to the “business” of the church, the donor should sell the personal property and give the proceeds to the church. The key word is VALUE. It should be marketable and its market value should be ascertainable. If the market value is thought to be above $5,000, an appraisal must be conducted prior to acceptance by the church. An asset that has value to a donor may have little market value.

Gifts of Life Insurance

Some persons have accumulated cash in insurance policies that they give to the church. Others purchase new policies with the church as beneficiary or name the church beneficiary of an existing policy. Donors may also give the entire policy as an outright gift. The charity may wish to accept the policy ownership and continue to make premium payments in order to collect the proceeds at the time of the donor’s death. Due to recent estate tax law changes, many donors may find their insurance policies, which were purchased for estate taxes, may not be needed and may be an excellent charitable gift.

Gifts of Real Estate

An unencumbered piece of real estate that is readily saleable in the marketplace can be a wonderful gift. In fact, real estate is one of the most often given assets because it is easy to gift.

Gift Annuity

The donor funds a gift annuity with an appreciated asset and gives it to the church; in turn the church distributes a lifetime (or defined period) of income to the donor (and/or spouse). This is an excellent way to convert a substantially appreciated asset into an income source for the donor.

Charitable Trusts

1) Assets are held in a trust. The trust can distribute income to the donor until death (or defined event) causes the asset to be distributed to the charity.

2) In a lead trust, assets are held in a trust. The trust distributes income to the charity until death (or defined event) causes the asset to be distributed to the donor’s estate or family.

Caution: Tax advantages should never be assumed. The various gifting strategies have certain tax implications that may or may not affect a specific donor’s personal income tax liability. For expert assistance, consult your Kairos Consultant, and ultimately, a tax attorney or tax accountant.

Ways that you can extend your giving potential to help support the mission of your church.

Priority Budgeting
Some persons may choose to rearrange their priorities in order to give greater gifts to a capital fund appeal. Priority budgeting may lead to postponing a planned expenditure such as a new car, sailboat, vacation home, etc. One couple delayed the purchase of a new SUV and applied the same monthly payments toward the capital fund appeal, enabling them to give an additional $20,000.

Re-channeling a Present Expenditure
Many families have incurred short-term heavy expenditures for special needs. An example would be while their children attend college. They learn during those years to budget their money so they can cover those expenditures. The same philosophy applies when budgeting money to support their church’s vision.

Gifts of Unexpected Cash
A couple unexpectedly received an inheritance of several thousand dollars. They decided to give the entire inheritance to their church to expand their gift to the building project. Other people give their income tax refunds.

Gifts from Increases in Income
Many persons have incremental salary increases, overtime, or bonuses which they include as part of their gift to their church.

Gifts of Income
Various types of investments distribute interest or dividends. If the donor is not using the distribution for current income, rather than be reinvested, the interest or dividends may be assigned, for a defined period, to the charity. The donor retains ownership of the asset.

Gifts from Extra Work
One man was in the process of retiring when the church undertook a capital fund appeal. He secured a new job and gave the first three years of his retirement income to the church. Another woman worked an extra year beyond retirement and gave the full amount to the building project.

Home Equity
Many people live in highly appreciated homes. Taking out a home equity loan to support your church is a very real option. Refinancing your home can lower your cash outlay, thus freeing up money to support your church.

Creative Giving A to Z
Automobiles • Acreages • Antiques • Bonds • Boats • Buffalo • Crops • Computers • Coins • Diamonds • Dividends • Estates • Endowments • Electronics • Farms • Furniture • Gems • Gifts in Kind • Houses • Hogs • Heirlooms • Interest • Insurance Policies • IRAs • Inheritances • Income Tax Refunds • Jewels • Jets • Kitchen Appliances • Land • Labor • Landscaping • Livestock • Motor Homes • Mutual Funds • Notes (Treasury) • Necklaces • Options • Office Supplies & Equipment • Properties • Printers • Plumbing • Quartz • Quick Assets • Rings • Real Estate • Retirement Funds • Stocks • Sculptures • Savings • Trusts • Tithes • Townhouses • Underwriting • Vacation Homes • Works of Art • Xerox Machine • Yearly Bonuses • Zero Coupon Bonds