When we think about responding generously with our finances, most of us think first about our monthly budgets and then become discouraged. Below are ways you can extend your giving potential to help support the mission of your church. Many can be used together to increase your giving potential.
Gifts of Appreciated Assets A gift of investment assets which have appreciated in value is one of the most common gifting strategies. The asset should be “substantially appreciated” if the giver wishes to receive tax benefit. Contact the church office if you’d like more information on how to make this type of gift.
Gifts of Stocks and Bonds With a gift of appreciated stocks or bonds the donor will avoid paying any capital gains taxes while receiving a full value charitable deduction, and the church will receive a very liquid asset. The stocks/bonds must be transferred to the church rather than selling them and donating the proceeds.
Gifts of Real Estate An unencumbered piece of real estate that is readily saleable in the marketplace can be a wonderful gift. In fact, real estate is one of the most often given assets because it is easy to gift.
Gifts of Life Insurance Some people have accumulated cash in insurance policies which they give to the church. Others purchase new policies with the church as beneficiary or name the church beneficiary of an existing policy. Donors may also give the entire policy as an outright gift.
Gifts of Investment Income Various types of investments distribute interest or dividends. If a donor is not using the distribution for current income, rather than be reinvested, the interest or dividends may be assigned, for a defined period, to the church while the donor retains ownership of the asset.
IRA Required Minimum Distribution (RMD) Those who are 70 1/2 or older and have an IRA can donate their RMD to the church tax free if the check comes from the financial institution that hold the IRA.
Gifts of Grain or Livestock Contact your grain elevator or auction company and ask that your grain or livestock (give specific number of bushels or heads) be placed in the name of FaithPoint Lutheran Church. Then contact the church office so they can make arrangements to sell.
Priority Budgeting This involves postponing a planned expenditure such as a new car, sailboat, vacation home, and applying the same monthly payments toward the capital campaign.
Re-Channeling a Present Expenditure Many families learn to budget their money for short-term heavy expenditures, for example while their children attend college. The same philosophy applies when budgeting money to support their church’s vision.
Gifts of Unexpected Cash One couple decided to give an inheritance to their church to expand their gift to the building project. Other people give income tax refunds.
Gifts from Extra Work One man postponed his retirement and gave the first three years of his retirement income to the church. Another woman worked an extra year beyond retirement and gave the full amount to the building project.
