Case study: Giving before the sale

Tom and Susan bought a beach house after their marriage for $50,000. After 25 years, their property value had increased ten-fold and was worth $500,000. The couple wanted to use this valuable asset to fund the Kingdom-building work of their church and favorite ministries.

So, they decided to sell the property and give the proceeds. As they were preparing for the transaction, Tom and Susan were informed that they would owe taxes of $94,500 upon the sale. Fortunately, their advisor introduced them to asset-based giving through National Christian Foundation (NCF) and they learned about the power of giving their property to charity before the sale.

They decided to give it directly to NCF, who liquidated the asset and sent the proceeds to their Giving Fund (donor-advised fund). Tom and Susan were able to go online and recommend grants to charity and experience the joy of multiplying the impact of their giving.

This was the result of their gift:

  • They avoided capital gains tax, saving $94,500, which went to the Kingdom rather than taxes. 

  • They received a higher income tax deduction of $500,000, the fair-market value of the property. This saved them an additional $38,745 in income taxes. 

  • They gave more to ministry...$500,000 instead of $405,500. 

  • They used the extra $38,745 tax savings to support their children's college education and gave more to their local church than they had previously planned.
Multiply your impact
Often using what's in your hand instead of what's in your wallet can make a huge difference when it comes to giving. Learn how one family was able to give almost a half a million more to charity by gifting land instead of ... read more
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