CHARITABLE GIVING OPPORTUNITIES

  • INTRODUCTION

    • The purpose of this summary of information is to make you aware of expanded opportunities to further the Kingdom of our Lord through charitable giving in coordination with the Presbyterian Church in America Foundation.

  • TYPES OF OPPORTUNITIES

    • Cash donations

    • Donations of investment assets such as stocks, bonds, mutual funds, etc.

    • Donations of assets such as real estate, business interests, etc.

  • WHAT IS INCLUDED IN EXPANDED CAPABILITIES 

    • Previously, we have been able to accept cash donations and gifts of marketable securities. 

    • What is considered expanded capabilities includes donations of real estate, business interests, silver, gold, other commodities, etc. The handling of donations like this can be facilitated through our collaboration with the Presbyterian Church in America Foundation.

  • TAX EFFECT  

    • Under current tax law, someone who sells assets like marketable securities and investment real estate will pay capital gains tax on the increase in value over the initial investment.

    • But current tax law also allows, in many cases, someone to donate assets that have grown in value since they were acquired and receive an income tax deduction in the amount of the market value at the time of the donation instead of at what you have invested in the asset.

    • The receiving organization is able to receive the asset in its full market value and arrange for sale in the name of the receiving organization rather than in the name of the donor. 

    • Under this approach, the donor may qualify not to have to pay capital gains tax on the gain over the original investment while receiving a charitable deduction for the full amount of the proceeds.

    • There are some complexities which exist on this option for marketable securities and real estate which require individual advice from a tax professional. 

  • FAVORABLE TIMING

    • Historically, year end has been a good time for one time donations.

    • This year in particular, we have seen a significant growth in value of investment assets as well as real estate holdings making this an opportune time for the consideration of making a charitable donation.

    • The needs are abundant and growing.

  • HOW THE CHURH CAN BE OF ASSISTANCE TO YOU IN THIS AREA OF CHARITABLE GIVING

    • As before, donations of cash can be made directly to the church.

    • For all other forms of donations you may contact Alison Carlson, Business Manager, at acarlson@westminsterchristian.org or at 847-695-0310 ext.210.

  • THE PURPOSE OF THE PRESBYTERIAN CHURCH IN AMERCIA FOUNDATION

    • The purpose of the Presbyterian Church in America Foundation is to assist churches in the PCA and their congregation members with the transfer and liquidation of assets donated for investment in Kingdom works in a tax efficient manner.

    • The PCA Foundation can assist and implement the sale and the distribution of your donation. 

    • More information is available at pcafoundation.com.

  • HOW THE FOUNDATION GOES ABOUT ITS PURPOSE 

    • The Foundation accepts assets from donors prior to their sale and then arranges for the sale and conversion to cash of the assets donated.

    • The Foundation then will distribute the cash to the designated recipient.

    • If the donor desires to hold off until a later date or dates for the distribution of the cash, the funds remain with the Foundation and invested until the donor decides when, how and in what increments the giving should be done. 

  • SUMMARY OF BENEFIT TO THE DONOR AND THE RECEIVING ORGANIZATION

    • For the Donor

      • The donor may qualify for an income tax deduction for the full market value of the asset at the time of transfer to the recipient instead of a reduced deduction based upon capital gains taxes on the increase in market value over the original cost basis. 

      • The donor does not have to go through the process of selling the asset and then making a cash donation from the proceeds of sale.

    • For the Receiving Organization

    • The receiving organization receives the asset at full market value (net of costs of transfer) versus receiving a reduced amount if the asset was sold by the donor and the cash proceeds donated less taxes due to the donor.

  • PROFESSIONAL ADVICE RECOMMENDED

    • This document is one of communication about a charitable giving strategy currently available under Federal tax law, but is not intended to be tax advice for any individual situation.  

    • A donor considering this strategy should consult with a financial advisor, tax advisor and/or attorney for specific impact on their individual situation before initiating this strategy.