The real impact of giving assets
When you’re passionate about a cause, it’s natural to want to give more. You see the needs, believe in the work being done, and wish you had more resources to help. But you may have greater capacity to give than you realize.
Your appreciated assets – real estate, business interests, stock, and others – represent more than financial value. They hold the potential to do something more – support the churches, missions, or causes closest to your heart. And this approach offers a meaningful way to see your stewardship create lasting impact.
Giving assets instead of cash can offer two significant benefits:
- Increased giving capacity – when you accelerate your generosity by giving from wealth tied up in your non-cash assets
- More tax efficiency – with a potentially significant tax deduction, so you can give more to the causes you care about
Across the country, givers with NCF are discovering how God can use the assets they’ve invested in for his good work.
Consider these three types of assets to help you reach your giving goals:
Real estate
Whether you own commercial real estate or a vacation home, you may be able to turn your valuable property into funding for foster care, evangelism, medical research, homelessness, or whatever else God is calling you to support. And if a sale is part of your long-term plan, you may have an even greater opportunity for generosity.
Roy and Joyce Mullen discovered this opportunity after decades of investing in real estate. In the late 1970s, they refinanced their home to purchase their first apartment complex. As their portfolio grew, so did their desire to give. Eventually, they donated that original apartment complex, which had appreciated to $3.5 million.
The gift provided a significant charitable tax deduction and expanded their capacity to support causes they loved, including Young Life, marriage ministries, and their local church. They were also able to offer matching grants to encourage others in their generosity.
By giving appreciated commercial, residential, or undeveloped property before you begin planning to sell it, you may have a once-in-a-lifetime opportunity to fund future giving. NCF’s in-house team of charitable professionals can come alongside you and your advisors as you decide if an asset gift is right for you.
But selling isn’t the only way your real estate can support your generosity.
For Anthony Humphress, owner of Eden Companies in Kentucky, it means giving a portion of his rental income each year. Through the Eden Goodwill Fund, Anthony helps provide rental assistance, affordable housing, and care for Eden’s residents who are facing difficult circumstances.
With the right planning, your income-producing real estate, whether it’s residential or commercial can become a powerful resource for generosity.
Business interests
If you’re considering selling your company in the future or just feeling overwhelmed by limited cash flow for giving, consider giving a portion of your business to make a bigger difference for your favorite charitable causes.
For many entrepreneurs who have a heart to give charitably, the opportunity arises to sell their company for a sizable gain. NCF can come alongside you and your advisors to help you give a portion of your business before you decide to sell.
But you don’t necessarily have to wait for a sale to begin giving through your business.
Brothers Ed and Sam Chan wanted to give more, but much of their wealth was tied up in their successful food-import company, C. Pacific Foods. They learned that they could give a portion of their business instead of cash, so they donated five percent of the company.
Now, as their business grows, a portion of its income becomes available for charitable giving. And if the company sells, a portion of the net proceeds will go into their Giving Fund, creating additional opportunities to support the causes they care about.
Securities
When stock prices are up, or even in uncertain markets, many people have some appreciated stocks or mutual funds in their portfolio. These present a significant opportunity to give more and potentially bring a substantial tax deduction, so you can give more to support the causes you care about most.
One giver turned stocks she’d owned for years into a way to provide ongoing support for a small church in Arkansas. With guidance from her financial advisor, she donated appreciated securities through NCF and began giving monthly to the church. Rather than making a one-time gift, she was able to provide steady support the church could plan around for years to come.
What could your assets make possible?
Real estate, your business, and appreciated securities can all provide opportunities to increase your giving capacity and likely allow you to give more tax efficiently. And the impact of those gifts can continue long after the assets have been given.
If you’re considering giving assets this year, it’s important to begin planning early. Non-cash gifts, particularly real estate and business interests, can take additional time to evaluate and process. Be sure to review NCF’s year-end giving deadlines before making your plans.
Whether you’re considering selling an appreciated asset or looking for ways to give more without using your available cash, NCF’s in-house team of charitable professionals can come alongside you and your advisors as you explore the possibilities.
What if your next big step in generosity doesn’t require earning or saving more? The resources God has already entrusted to you may hold opportunities for generosity you’ve never considered – opportunities to support the work you care about and make a difference for generations to come.
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