Legacy Giving

Creative Generosity

Scientists tell us that only about 10% of an iceberg is visible above the water’s surface.  The great mass – some 90% of the iceberg ­ is below the surface and hidden from view.  Similarly, the Christian steward’s assets (or estate) are often approximately 10% in cash (liquid assets) and the remaining 90% in non-cash, non-liquid assets.  

COMMON NON-CASH GENEROSITY OPTIONS 

As a general rule – if an asset has an ascertainable value and is commonly bought and sold, it may be possible to use it to fulfill your generosity desires.  However, some assets have complicated tax and ownership rules that make their use as a charitable gift less desirable or even prohibited.   

Here is a partial list of non-cash assets that are commonly used to make generous charitable gifts. 

• Securities (Stocks, Bonds, Mutual Funds) – Simplest to give are those traded on a public stock exchange or market.  
• Tangible Property - Physical property that can be moved. 
• Real Estate – Buildings and Land 
• Commodities – The most common is a gift of grain from an active farmer. 
• Life Insurance – Policies can be gifted to the ministry or can name the ministry as a beneficiary. 
• Individual Retirement Accounts – Commonly referred to as an IRA 

Generally, if you are at least 70.5 years of age, IRAs can be excellent assets for making current gifts so long as you understand and follow the withdrawal and taxation rules carefully. 

The qualified charitable distribution provision in the Tax Code allows you to have your IRA custodian send a distribution directly to your chosen ministry rather than to you.  Since you don’t receive the distribution, you will not have to claim it as income.  Further, the distribution can count toward your RMD for the year of the distribution.