WAYS TO GIVE TO SACRED HEART OF JESUS

Most often when we think of making gifts to Sacred Heart of Jesus Parish and others, we naturally think of giving from our income.

However, as we prayerfully consider sacrificial giving to help Sacred Heart of Jesus, we have an opportunity to reflect on other sources for giving as well. Often these other forms of gifts offer additional benefits to the donor. Other types of outright gifts are:

Publicly Traded Securities
Closely-held Stock
Personal Property
Real Estate
Paid-Up Insurance Policies
Charitable Lead Trusts
Gifts-in-Kind
Deferred Gifts

Publicly Traded Securities

Long-term appreciated capital gain property (such as stock) is one of the most common ways to make additional capital gifts. These gifts are tax deductible at the full fair market value subject to some limitations. However, the gain is not subject to taxation to the donor at the time of the gift or to the church when the stock is sold.

Example:
Donor paid $2,000 for stock now worth $10,000.

If donor sells stock he/she pays $1,600 in capital gains taxes and keeps $8,400.

If donor gives stock to the church, neither donor nor the church pays taxes and donor receives $10,000 income tax deduction.

To transfer publicly traded securities contact Harold Wolfe at 303-442-6158 x113.

Closely-held Stock

Gifts of closely-held stock are virtually the same as publicly traded securities, but may carry additional benefits to the donor. Along with the income tax deduction, gifting closely-held stock is a good way of reducing company retained earnings and transferring ownership of the company to children or grandchildren.

Personal Property

One can make a gift of personal property to help Sacred Heart of Jesus to help support the campaign. These items can include antiques, works of art, jewelry, coin or stamp collections, as well as other valuable assets. However, these items are generally tax-deductible at their base cost and not their fair-market value.

Real Estate

A gift of real estate will generate a tax deduction for the full appraised fair-market value. Like securities, the capital gain is not taxable to the donor or the church. Sometimes a donor has a parcel of real estate that they are willing to gift, but they want to retain some of its value for themselves. A bargain sale is a good way to make a gift to the church and keep some of the value.

Example:
Donor has a parcel of real estate worth $100,000. Donor sells the property to the church for $50,000. The donor has made a charitable gift of $50,000 to the church and received cash for themselves. The tax deduction is equal to the difference between the selling price and the appraised price.

Paid-Up Insurance Policies

Many times families have paid-up life insurance policies that they no longer need. A paid-up insurance policy can be a wonderful way to make a gift to the church. The tax deduction is equal to the replacement value or the donor’s cost in the policy, whichever is less. The church will have the option of retaining the policy or taking the current cash surrender value.

Charitable Lead Trusts

A lead trust can be established to provide income to the church for a specified term of years. After the term of years, the assets in the trust revert back to the donor or to individual(s) designated by the donor. Cash, securities and some types of real estate can be used to fund the trust. There is no income tax deduction for this type of gift but there is an estate tax savings.

Gifts-in-Kind

A gift-in-kind is a product or service that you can give because of your work experience or related business.

Examples:
Site Development: grading, drainage, paving, landscaping, etc.
Construction Materials: concrete, lumber, bricks, roofing, paint, etc.
Building Materials: windows, doors, plumbing, lighting, flooring, etc.

Deferred Gifts

Deferred gifts are gifts that are received some time in the future by the church. During that time the donor retains an interest in the assets.

Examples:
Bequests
Estate Notes
Charitable Remainder Trusts
Charitable Gift Annuities
“Pay on Death” Accounts
IRA Beneficiary
401K Beneficiary
Life Insurance

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