If you’ve been writing checks to charity, you could be missing out on some of the greatest opportunities you have to make a significant impact with your generosity. By shifting your giving from your checkbook to your balance sheet, you may be able to give with more tax efficiency and have a greater impact on the causes you care about than you ever imagined.
So, what can you give instead of cash? Here are five things you may want to consider:
- Publicly traded stock – When you give publicly traded stock to your Giving Fund, you may qualify for a fair-market-value deduction, and because of NCF’s tax-exempt status, capital gains tax may not have to be paid on the sale of the gifted stock. A gift to NCF of appreciated stock allows you to bless the charities you love by recommending significant grants from your Giving Fund. Compared to selling the stock first, and then giving cash, you can preserve substantially greater value and have more for giving.
- A portion of your business before a potential future sale – Many entrepreneurs sell their businesses and then give some of the proceeds, missing out on the opportunity for greater charitable impact. If you plan well in advance, your charitable options include not only gifting a percentage interest in the business outright, but alternatively gifting that interest in partial exchange for a charitable gift annuity, which benefits charity and pays you income in retirement. Learn more about planning for the potential sale of your business.
- A portion of your business now, before a potential sale is anticipated – One smart strategy is gifting a percentage interest in your business even when a future sale is not expected soon. For example, if you give NCF a 10 percent interest in your company, then 10 percent of the company’s profits and distributions will be made to us as the new owner, and the net proceeds go to your Giving Fund for more giving. This strategy often provides an upfront, charitable income-tax deduction for you for the fair market value of the gifted interest and potentially reduced taxes on the ongoing profits and future sale of the gifted interest. Learn more about using your business to fund charity.
- Real estate – By gifting appreciated or income-producing real estate to NCF, you likely qualify for a fair-market-value deduction. In addition, future income from the gifted real estate interest may not be taxable to NCF. The combination of these two things usually results in more dollars available for charitable impact. It may allow you to give an asset before capital gain is recognized and still claim the charitable deduction – leaving you with more to give to the charities you love. Learn more about giving real estate.
- Oil, gas, and mineral rights – If you own oil, gas, or mineral interests, you might be able to give a portion of one of these assets to NCF. The sale proceeds or ongoing income from that gifted portion could be a continued source of income to fund charitable granting. As income flows into the Giving Fund, you may recommend grants to support the charities you love. Once again, compared to simply gifting cash from the distributions, giving NCF a portion of your ownership may result in greater amounts available for charitable impact.
If you want to go the distance in your journey of generosity, cash giving can only take you so far. Your NCF team can come alongside you to help you make the most of what you have to give by considering all your assets for God’s purposes.
However you choose to give this year, NCF wants to help you fulfill your goals and commitments. Feel free to reach out to your local NCF team. We’d be happy to work with you and your financial advisor to find the right solution for your giving.
Non-cash gifts may be made to one or more of NCF’s affiliated ministries.
Contact an NCF team near you to learn more.
