Benefits ofAsset-based Giving
By donating non-cash assets first – rather than selling them first, paying taxes, and giving the net proceeds – you typically receive a tax deduction for the full fair-market value of your gift, as well as avoid capital gains taxes. This is just one of the benefits of asset-based giving …
Giving Before the Sale of a Non-Cash Gift
A hypothetical case study in tax-smart giving
Katherine and Mark bought a piece of property 25 years ago for $50,000. This year, it was worth $500,000. Having a heart for evangelism, they wanted to sell the asset and then give the proceeds to The Idlewild Foundation.
Doing so, however, would have sent tens of thousands of dollars to the Federal government in taxes, instead of to the missionaries in critical need of those dollars.
Then Katherine and Mark learned that The Idlewild Foundation was able to accept innovative, non-cash gifts such as real estate, business interests, and restricted securities, and they were thrilled to make their gift before the sale. Why was this the smart choice?
- No capital gains tax: Katherine and Mark avoided capital gains tax, saving $94,500. These dollars went to support the ministry work of The Idlewild Foundation.
- Higher charitable income tax deduction: They received a tax deduction of $500,000, the fair market value of their property. This saved them an additional $38,745 in income taxes.
- Maximized gift: They were able to give $500,000 to charity instead of $405,500.
With the extra $94,500 The Idlewild Foundation could buy a year’s supply of Bibles and help train hundreds of missionaries to effectively spread the Gospel. With the extra $38,745, Katherine and Mark could help put their daughter through college.
So how can we serve you? The Idlewild Foundation would be honored to explore how we can help you give in new, creative, and tax-smart ways. Please call us at (813) 264-8713 today to learn more.
Get started:Asset Donation Form
If you’re ready to begin the process of donating your non-cash asset, use our Asset Donation Form to share details about your gift such as the present/projected value and your goal for its ultimate distribution to charity …
Examples and strategies
There are many creative ways to give from non-cash wealth, and each brings its own set of benefits and tax advantages. Here are several examples and strategies to help you learn more: