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 (results vary as the tax laws change)

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 the Asset Donation Form to share details about your gift such as the present/projected value and your goal for its ultimate distribution to charity. The link below leads you to the National Christian Foundation website with many different forms for gifts to your Giving Fund. If you have any questions call us at (813) 264-8713 or call NCF.

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. The following links take you to the website of the National Christian Foundation and may help you realize how to give more as well as more effectively.

Giving before the sale

5 Smart Things Givers Know