The past couple of years have changed life in ways that many never anticipated … for better or worse. At home, at work, and at church, you’ve probably have been forced to pivot in how you do certain things. But have you considered that it might be time for a shift in how you give as well?
For example, if you have 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, especially now when the needs are so great.
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:
- A portion of your business now – One smart strategy is gifting a percentage interest in your business to NCF. For instance, if you give a 10 percent non-voting interest in your company, 10 percent of the company’s profits and distributions can flow to your Giving Fund. Then, you can recommend grants from your fund to your favorite charities. This strategy often provides several tax efficiencies, including an upfront charitable income tax deduction for the fair market value of the gifted interest and potentially reduced taxes on the ongoing profits and future sale of the business. Learn more about our charitable shareholder strategy.
- A portion of your business before a future sale – Many entrepreneurs sell their business and then give, missing out on the opportunity to preserve the value of the gifted interest for charitable impact. If you plan well in advance, your charitable options include not only gifting a percentage interest in the business outright to NCF, but also gifting the asset to a split-interest arrangement, such as a charitable remainder trust or charitable gift annuity. These arrangements can pay you income in retirement. Learn more about planning for the sale of your business.
- Real estate – By gifting income-producing real estate, you may enjoy a fair-market-value deduction and often avoid the capital gains tax. Essentially, you are giving pre-tax dollars and still getting the charitable deduction – a double benefit. This is an especially valuable strategy for lowering capital gains tax consequences for those who frequently buy and sell real estate. Learn more about giving real estate.
- Publicly traded stock – When giving publicly traded stock to your Giving Fund, you may qualify for a fair-market-value deduction, and charity does not have to pay capital gains tax on the sale of the gifted stock. A gift of appreciated stock allows you to bless the charities you love with a significant gift, preserving the full value of the stock for charitable giving.
- Oil, gas, and mineral rights – If you own oil, gas, or mineral interests, these assets could be a continued source of income to support the charities you love, both now and after death, all while enjoying a charitable income tax deduction and potentially reducing taxes on the income. You can make NCF a partial owner, so that the income stream and sale proceeds flow to your Giving Fund 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 leveraging all your assets for God’s purposes.
Contact an NCF team near you to learn more.
