Your Leadership Team offers some thoughts as you continue to prayerfully consider your investment in the Broadway Project and the broader vision of Salem Alliance Church.

“Yes, you will be enriched in every way so that you can always be generous. And when we take your gifts to those who need them, they will thank God.”
2 Corinthians 9:11 (New Living Translation)

Talk To Your Advisor

Before making any significant gift to Salem Alliance Church you should have your CPA, attorney, or other advisor help you understand the impact of your gift on your income tax return and estate.

What Are Gifts-In-Kind?

Transferring ownership of an asset directly to Salem Alliance Church first, rather than selling the asset and giving the cash, is called a “gift-inkind.”

What If I Sell First then Give the Cash?

You may be subject to capital gains taxes thereby reducing the after-tax proceeds from the sale.

What Kind of Assets Should I Consider Giving?

Appreciated investment property held more than one year, such as stock, mutual fund shares, bonds, real estate, collectibles and other similar properties have tremendous tax advantages.

Why Give Gifts-In-Kind?

The tax code is very generous toward this form of giving. Giving the asset to the church and then letting the church sell it eliminates potential capital gains taxes and can increase the after-tax proceeds.

Itemized Deductions

The individual or business is allowed to include 100% of the market value of most assets as charitable contributions for tax purposes if held more than one year.

Capital Gains

The transfer of appreciated property to the church as a gift will avoid the capital gains tax. The Salem Alliance Church, as a tax exempt entity, will realize the full market value, less transaction costs, at the time of sale without paying capital gains tax.

Giving long-term appreciated stock offers you a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in value of your stock. In addition, you receive a tax deduction for the full fair market value of the stock on the date of the gift. For income tax purposes the value of such gifts may be deducted up to 30% of your adjusted gross income, with an additional five-year carry forward.

Example: If you purchased stock many years ago for $1,000, and it is now worth $10,000, an outright gift of that stock would result in a charitable deduction of $10,000. In addition, you permanently avoid paying capital gains tax on the $9,000 of appreciation.

How Do I Give These Types of Gifts to Salem Alliance Church?

If you are interested in donating any of these types of gifts to Salem Alliance Church, please contact Lynn Hopper, Accountant (via e-mail at lhopper@salemalliance.org or via phone at 503-581-2129 x298) for further instructions.

“You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. ‘For God loves a person who gives cheerfully.’”

2 Corinthians 9:7 (New Living Translation)

We will not pressure you into giving. We all must listen to the Lord. Your financial involvement in this tremendous project is a decision between you and God. Giving is a part of worship, but giving must come from your heart … not your checkbook.

So, continue praying:

“Lord, what do you want to do through me as it relates to Your will for this church?

If you have owned real estate (rental property, acreage, vacation home, or farm) for many years, a charitable gift of that real estate can be especially tax advantageous.

The property may have so appreciated in value over the years that its sale would result in a sizeable capital gains tax to you. On the other hand, if the property is given as a gift, you will avoid the tax and, at the same time, realize a charitable deduction for the full fair market value of the real estate.

Gifts of Retirement Savings

Making Salem Alliance Church the beneficiary of your retirement savings plan at your death enables you to leave a substantial legacy gift for a relatively modest outlay. Retirement assets maybe the most heavily taxed asset at the death of you and your spouse, thus making retirement plans an excellent gift choice.

Gifts of Other Savings

Savings for special projects, or a “rainy day” may offer a resource for increased giving. Often we realize that a portion of our savings may safely be given to the work of God’s kingdom through our church.

Gifts of Life Insurance

If you own a life insurance policy that is no longer needed, you may be able to name Salem Alliance Church as both the owner and beneficiary of the policy and receive tax benefits. For additional information please contact Rick Zeeb, Director of Legacy Ministries (via e-mail at rzeeb@salemalliance.org or via phone at 503-581-2129 x281).

Gifts of Tangible Property

Certain restrictions apply to gifts of tangible property (i.e., valuable paintings, jewelry, stamp and coin collections, automobiles, etc.). There may be no capital gains tax benefits to you, but the financial benefits to the church can be significant. We recommend that you speak to your tax advisor for guidance in this area.

Corporate Gifts

For those that own businesses, having your business make a charitable donation to Salem Alliance Church can also result in tax benefits.

A Charitable Gift From Your IRA

If you’re 70½ or older, a new tax law allows you to give qualified charities (like Salem Alliance Church) up to $100,000 directly from your IRA without triggering federal income taxes. The gift will also satisfy the rules for required minimum distributions for the year. Contact us for a brochure that contains more information about this giving opportunity.

DISCLAIMER

This material is presented for informative purposes only and should not be construed as legal, tax or financial advice. When considering gift-planning strategies, you should always consult with your own legal and tax advisors.