Blog

How to create a giving plan (Part 1 of 6)

by NCF staff  |  March 22, 2017  |   Category: Insights
We all want to make the biggest possible impact with our generosity. But how many times have we given spontaneously in response to a direct mailer's emotional photo? Or committed to a friend without much thought when they called us out of the blue ... read full post

My father always told me growing up that real estate is the best investment. Even if your investment doesn’t pay off, at least you have something to show for it! I have found in my law practice, and working at NCF, that real estate donations are some of the best charitable gifts to maximize tax savings and increase dollars to ministry and non-profits.

There are several strategies that you can utilize when gifting real estate to charity. The first is the easiest; giving property before it sells. By gifting property to a charitable organization before it is sold, the donor will experience two tremendous tax benefits:

  • An income tax deduction equivalent to the fair market value of the real estate. A taxpayer in the U.S. may deduct up to 30% of their AGI every year in non-cash assets and carry forward any remaining deduction up to five years after the gift. Most individuals, and companies, do not take advantage of this charitable deduction. 
  • Gifted real estate will avoid capital gains when sold the by the charity. Tax exempt organizations generally do not pay long-term capital gains tax, thus another tax avoided by the taxpayer.

The next strategy is slightly more complex, but pays huge dividends! Donated income producing commercial real estate can be held long-term by National Christian Foundation. This can be anything from a commercial office building to a rental house or even farmland. By donating the real estate to be held long-term (i.e. no anticipated sale of the property) the donor will still take a fair market value income tax deduction at the time of donation (again 30% AGI limitations typically). In addition, the donor avoids capital gains at a sale. There are a few more unique benefits as well:

  • Passive rental income flows tax-free to the donor advised fund and is available for gifts to charity. Plus, the income does not have to be realized. This lowers the overall taxable income of the donor and provides an ongoing source of charitable dollars.
  • This can be a great way to transition income producing property to children, partners or key employees. The employees can purchase the property from NCF on a note, and income from the property can be used to make the note payments. Thus, transferring property tax-free and without a large investment of cash upfront.

Real estate gifts are wonderful for both the donor and the charity. Check out the Heise’s story on how God increased the value of their real estate gift and multiplied their giving. What if you could help your clients do the same thing through NCF?


FREE WEBINAR

Turning Real Estate into Real Hope

IN THIS WEBINAR YOU WILL LEARN:

  • How to maximize your client's tax savings by giving appreciated real estate before the sale
  • How income-producing real estate can become a philanthropic investment 
  • Practical examples of how clients have benefited from giving real estate donations including farm land, office buildings, and an entire university campus

Date: Tuesday, April 11th

Time: 9am-9:30am

REGISTER HERE


“We are put on this earth to give, to devote ourselves to a radical brand of generosity that changes lives and leaves a legacy.”
 
That memorable quote is from David Green, CEO and founder of Hobby Lobby. His book, Giving It All Away … And Getting It All Back Again: The Way of Living Generously, is rightly being hailed as the latest authority on legacy and generosity.
 
Listed among Forbes 100 richest in America, Green goes beyond explaining how to strategically pass on a legacy to future generations. He shares the secrets to building a successful company from scratch, honoring God with everything you have, and finding joy through giving. With a behind-the-scenes look at their 2014 Supreme Court case, Green shares how he found peace amidst hard times.

... read full post





COMPELLING EVENTS What Makes an Event More Than Just Successful? Connie Hougland & Tracy Nice Please enjoy these complimentary sample resources: Home Host ... read full post
A TALE OF 2 DONORS Fundraising - one of the most invigorating and frustrating words in the English language. It’s not a complex word by any means. Dictionary.com ... read full post
Whether you own a beachfront home or a family farm, our team at NCF can help you turn your valuable property into Bibles for evangelism, help for the poor, or anything else ... read full post
Did you know that NCF is the 9th largest charity in the country? As a result, we have over 15,000 active giving funds nationwide. Many use their giving fund ... read full post
There's a remarkable gap in the conversation between parents and their kids regarding money. These days, more than ever, parents find it necessary to talk with their kids ... read full post
In this new episode of our Inside Giving podcast, you’ll hear the inspiring story of Craig and April Chapman, two software engineers from Seattle who give beyond the ... read full post
Transferring Wealth or Passing on a Legacy? I recently hosted a webinar for advisors on using charitable giving strategies in estate planning, and while preparing for the ... read full post
KEEP ON KEEPING ON! Consider it pure joy, my brothers and sisters, whenever you face trials of many kinds, because you know that the testing of your faith produces ... read full post
More
Connect
7171 W. 95th Street, Suite 501
Overland Park, KS 66212
913.310.0279 phone
913.227.0254 fax
Follow
Sign up for our regular emails (above), or follow us online at:

Select a favorite office

Find your nearest office and set it as your "favorite" to get local links, news, and information.