Strategic Giving

Most often when we think of making gifts to Randolph Street Church, we naturally think of giving from our weekly income. This is an important part of our responsibility in this family of believers and can be done each week during our worship gathering or by visiting our online giving page by clicking here. 

However, as we prayerfully consider the 321 Project and our sacrificial giving to advance the gospel in this community and throughout the world, we have an opportunity to consider other sources for giving. These other forms of gifts often offer additional benefits to the donor. Other types of outright gifts include:

• Bequests in a Will
• IRA Distribution
• Publicly Traded Securities
• Closely-held Stock
• Personal Property
• Real Estate
• Gifts-in-Kind
• Individual Retirement Accounts and Plans
• Paid-Up Insurance Policies
• Charitable Lead Trusts
• Partnership Interests

Publically Traded Securities

Long-term appreciated capital gain property (such as a stock or bond) 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 or the Church.

Example:

• Donor paid $2,000 for stock now worth $10,000.
• If Donor sells stock he/she pays $1,500 in capital gains taxes and keeps $8,500.
• If Donor instead gives the stock to the Church neither they nor the Church pays taxes and the donor receives a $10,000 tax deduction.

Closely Held Stock

Gifts of closely-held or restricted 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 Randolph Street Church 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 original cost and not their current fair-market value.

Appreciated Real Estate

A gift of real estate will generate a tax deduction for the full appraised fair-market value. This includes personal residences, farms, commercial buildings and undeveloped land. Like securities, the capital gain is not taxable to the donor or to 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.
• They sell 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 were originally taken out to cover mortgage expenses or pay for college for a child. If these reasons are no longer at issue, 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. For giving in this fashion beyond one's lifetime, it is important to have delineated the desired fund as beneficiary.

Charitable Lead Trusts 

A lead/remainder 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.

“To Him be the glory in the Church and in Christ Jesus throughout all generations, forever and ever! Amen.” (Ephesians 3:21)

*Any charitable giving that involves tax or estate-planning issues should be done in consultation with a qualified tax professional, financial planner or personal attorney. Randolph Street Church does not offer tax or legal advice.