From Your Capital Campaign Committee

Non-Traditional Ways to Give

As a member of the Capital Campaign Committee and a professional estate and financial advisor, I have been asked to research alternative, or non-traditional gift giving opportunities by which the members of Clear Lake United Methodist Church may give to fund the Capital Campaign. I did not have to research very far. C.J. Taylor, President and CEO of the United Methodist Foundation is a member of our own conference. He has generously contributed articles he has written on alternative gift giving. This week we present his first article which addresses the giving of appreciated securities.

There are many ways to give. The wise steward looks at that which God has entrusted to him or her and decides what will constitute a worthy gift. It therefore follows that one needs to decide if they give cash or other gift.

The cash gift is always a welcome gift to any charitable cause. More people give cash (usually in the form of a check) than any other type of gift. Cash gifts may be deductible on your income tax return if you itemize deductions (limited to 50% of adjusted gross income). However, the cash gift is sometimes smaller than the donor would like to give because of limited cash available at the time of the gift. The cash gift may also cost the donor more to give than a gift of some other kind of property. Thus, the donor is also encouraged to look at other kinds of gifts.

Giving Appreciated Securities

Many persons own appreciated securities paying minimum dividends, which they have chosen not to sell due to the capital gains consequences. If the owner sells these securities, capital gains tax must be paid on the difference between their tax basis, i.e. the cost of the securities and value at the time the securities are sold. When giving appreciated securities, the donor not only satisfies a need and desire to make a charitable gift, but also takes advantage of making the gift at deduced cost. If the proper procedures are followed, the donor can avoid paying any capital gains tax and, the church receives the full value of the appreciated securities to benefit its ministries.

In future articles we will submit other effective non-traditional ways individuals have used to give to their charities. If you would like to give your appreciated security, contact Tom Basile, our church Business Manager, and he will assist you in the transfer.