Beyond Bequests: 3 Planned Gifts that Help Now
Most planned gifts don’t benefit the church until after a beloved member passes away. But as we enter a time of year associated with generosity and giving thanks, you should be aware that there are other types of planned gifts that can benefit your church immediately. These gifts can also have great tax advantages for the donor. If one of your members wants to make a planned gift whose impact they can see during their lifetime, here are three options to consider.
IRA rollover gift: people aged 70.5 or older can make gifts to charity directly from their traditional Individual Retirement Accounts. It’s easy to do. The donor simply calls the financial institution that holds his or her IRA, specifies the dollar amount and the church name and address, and instructs them to cut a check and mail it directly to the church. These gifts (up to a $100,000/year limit) count towards the donor’s required minimum distribution. And, because they come directly from a pre-tax savings account to a tax-exempt charity, neither the donor or the recipient pays any tax.
Real estate: people whose assets are tied up in real estate can still make major gifts during their lifetimes. If the donor decides to give a property to the church outright, he or she can take a tax deduction of the current market value (rather than the amount originally paid for it). Another type of real estate gift is a bargain sale. The donor sells the property to the Foundation for less than its current market value and takes a tax deduction for the difference. Then the Foundation liquidates the property, pays the agreed-upon bargain price, and cuts a check to the church for the remaining balance.
Appreciated stock: these gifts allow people to bypass capital gains tax, and also get a nice tax deduction for the present value of any stock they donate. If your church has a brokerage account, members can donate stock directly. If not, your church can use our Stock Gifts Program to accept these types of gifts at no cost. The church member who wants to make the gift fills out a brief form indicating their intent to transfer stock, the Foundation works directly with the donor’s broker to accept the shares, sells them, and then sends your church a check in the mail for their total value.