Phase III - Strategies in Giving

Phase III

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Giving Stock or other Property

Why give stock or other property?

  • Appreciated investment property held more than one year, such as stock, mutual fund shares, bonds, real estate, collectibles, and other such property have tremendous tax advantages.
  • Personal property such as automobiles, jewelry, and other items may also be given. There may be no capital gains tax benefits, but the financial and spiritual benefits can be tremendous.
  • Give the asset to the church, then let the church sell it, eliminates potential capital gains taxes and can increase the after tax proceeds.

How does the tax benefit work?

  • Itemized Deduction: The individual or business is allowed to 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 the 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 thereby reducing the after tax proceeds from the sale.

  Sell First G-I-K
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

If you wish to give stock, please contact the rectory or the Catholic Planned Giving Office.

Michael L. Henkenius, J.D., Director
P.O. Box 80328
Lincoln, NE 68501

Phone: 402-488-2142, ext 113
Fax: 402-488-3569


Other Strategies

Cash Flow Gifts:

  • A person can give significantly by giving smaller amounts at higher frequencies. Weekly, semi-monthly, or monthly giving allows large gifts to be reached in smaller steps.

Diverted Funds Gifts:

  • Freeing up funds that are currently going to other areas of spending allows a person to increase giving to God's work. Diverting funds from entertainment, dining out, dues, subscriptions, gifts, allowances, utilities, or transportation, offers lifestyle adjustments which impact one's giving.

Delayed Expenditures:

  • The delaying of purchases allows a person to significantly increase giving. The acquisition of major items such as automobiles, clothing, or trips, when postponed, allows substantial giving opportunities.

Income Producing Assets:

  • Interest income, payments from rental properties or monies from other income producing assets provide a source for increased giving.

Sale of Assets:

  • Sale of major assets, such as a house, car, land, or business provide available income for giving.

Income Raises/Bonuses:

  • Dedicating one's forthcoming raises and bonuses is a creative method people have used to increase giving.

Savings and Annuities:

  • Savings for special projects retirement or a "rainy day" may offer a resource for increased giving.

Corporate Gifts:

  • Those who have used their business as a source for giving have made significant donations.

Tax Savings:

  • Additional giving to your church also creates additional tax savings. By giving these savings one can increase the total contribution. One example is that of a person whose $6,910 contribution resulted in a tax savings of $1,800. This enabled the person to give a total of $8,710.
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