Solutions

5 things you can give (instead of cash)

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 improve cash flow, increase tax efficiency, and give much more than you ever imagined.

So, what can you give instead of cash? Here are five things you may want to consider:

  1. Publicly traded stock – When you give publicly traded stock to your Giving Fund, you may qualify for a fair-market-value deduction, and the capital gains tax does 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 for granting this way.
  2. 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 increased 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.
  3. 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 we grant the net proceeds to your Giving Fund. Then, you can use your Giving Fund to support your favorite charities. 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 for us on the ongoing profits and future sale of the business. Learn more about using your business to fund charity.
  4. Real estate – By gifting appreciated or income-producing real estate to NCF, you may qualify to enjoy a fair-market-value deduction while we often are not subject to tax on the sale or income from the gifted portion. This is an especially valuable strategy for those who frequently buy and sell real estate. It allows you to give an asset before capital gain is recognized and still claim the charitable deduction – a double benefit that frees up more for charitable impact. Learn more about giving real estate.
  5. 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 us. The sale proceeds or ongoing income from that gifted portion could be a continued source of charitable impact as you use your Giving Fund to support the charities you love. Once again, compared to simply gifting cash from the distributions, giving NCF a portion of the asset’s ownership can result in considerably greater amounts you can use 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 help you give more by considering all your assets for God’s purposes.

Contact an NCF team near you to learn more.

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