Donate
Give income, assets, or future revenue.
- Gifts-In-Kind:
- Transferring ownership of an asset, rather than selling it and then giving the cash, can eliminate potential capital gains taxes and allow Village to realize the full market value of the asset.
What Kind of Assets Should I Give?
- Appreciated investment property held more than one year, such as stock, mutual funds, bonds, real estate, collectibles, and other such property have tremendous tax advantages.
- Personal property (automobiles, jewelry, etc.) may also be given. There may be no capital gains tax benefits, but the financial and spiritual benefits can be tremendous.
Why Give Gifts-In-Kind?
- The tax code is very generous toward this form of giving.
- Giving the asset to the church and letting the church sell it can eliminate potential capital gains taxes and can increase after tax proceeds.
How Does The Tax Benefit Work?
- Itemized Deduction:The individual or business may include 100% of the market value of most such assets as charitable contributions for tax purposes if held more than one year.
- Capital Gains: The transfer of property does not generate a capital gains tax.
- The church, as a tax exempt entity, will realize full market value, less transaction costs, at the time of sale without paying capital gains taxes.
What If I Sell First Then Give The Cash?
- You may be subject to capital gains taxes thus reducing after tax proceeds from the sale.
| Sell First | Gift-In-Kind | |
|---|---|---|
| Market Value | 20,000 | 20,000 |
| Cost Basis | -10,000 | -10,000 |
| Gain | 10,000 | 10,000 |
| Tax (assuming 15%) | 1,500 | -0- |
| After Tax Proceeds | 18,500 | 20,000 |
How Do I Give Gifts-In-Kind?
- For stocks, mutual fund shares, and bonds:
Transfer Instructions (if held in "Street Name")
- Contact your broker, requesting the transfer, and provide the following:
- Firm: Ameritrade- 503-644-8872
9600 SW Barnes Rd #190,
Portland, OR 97225 - DTC #: 1088
- Acct #: 875020380
- Acct Name: Village Baptist Church
- Firm: Ameritrade- 503-644-8872
- You will be provided with stock powers or transfer papers to complete the transfer.
- Contact your broker, requesting the transfer, and provide the following:
- For shares in your possession, you will need to endorse the certificates and have the signature "guaranteed" by a financial institution in the "Medallion Stamp Program."
For more information regarding gifts-in-kind, or giving other types of assets contact Pastor Jim McGuire at 503-643-6511.
- Cash Flow Gifts:
- Weekly, semi-monthly, or monthly giving allows large gifts to be reached in small steps.
- Income-Producing Assets:
- Interest income, payments from rental properties or monies from other income-producing assets provide a source for increased giving.
- Sales of Assets:
- Sales of major assets, such as a house, car, land, or business provide income for giving.
- Raises/Bonuses:
- Dedicating forthcoming raises and bonuses is a creative way to increase giving.
- Savings and Annuities:
- Savings for special projects, retirement, or a "rainy day" may be a resource for increased giving. Often we realize that a portion of our savings may safely be given to the work of God's kingdom through our church.
- Corporate Gifts:
- Those who have used their business as a source for giving have made significant donations.
- Charitable Giving Resources:
- Reviewing all charitable donations for their impact on God's kingdom affords a resource for significant giving.
Note: Any discussion of tax treatment is not intended and should not be considered as tax advice. Consult your personal tax professional for advice on your tax position.
