Investing with Faith / Kimberly Pohovey

Communicate with charity when considering a gift of property

Stocks, real estate, grain, vehicles, treasured jewelry and works of art—through the years people have made all kinds of gifts to charity. And while such donations can be a source of valuable support, it’s also important to recognize that not every charitable organization can benefit from gifts of property—or even be able to accept them.

The Archdiocese of Indianapolis and all our agencies and entities are governed by a gift acceptance policy, which provides requirements for appraising the value of potential donations and ensures that a donor’s generosity will provide the intended recipient with a genuine benefit. That almost always means that the archdiocese will work to liquidate gifts of property as expeditiously as possible, so that much-needed support can reach the people we serve.

Some property gifts are more complicated than others, especially in terms of tax regulations and reporting.

Recently, a generous donor gave $30,000 of gold coins to a parish. During the process of liquidating this gift, the archdiocese and parish had to follow IRS requirements in reporting the gift, and it was incumbent on the donor to claim the tax deduction with the IRS as well. On the other hand, a farmer’s gift of grain through a liquidating distributor is relatively simple. And yes, sometimes a used vehicle can find its way to an agency that needs one.

Of course, donors may also benefit from a gift of property.

For example, when it comes to marketable securities like stock, donors receive an income tax charitable deduction that is based on the full market value of the gift, not on the original investment. The deduction for long-term appreciated securities cannot exceed 30% of adjusted gross income, but any additional value can be carried over and deducted for up to five years. In addition, a charitable gift is not subject to capital gains tax.

If you are considering giving something you own to benefit your favorite parish, school, agency or archdiocesan ministry, it is always best to contact that organization first to determine whether what you intend to give can be accepted. And you should always contact your own financial advisor to determine which available tax benefits may be best for you.

Of course, the Catholic Community Foundation is happy to provide information and guidance about how your gift can be most effective for those you want to support. Contact ccf@archindy.org to learn more.
 

(Jolinda Moore is executive director of the archdiocesan Office of Stewardship and Development and the Catholic Community Foundation [CCF]. Tax or legal information provided herein is not intended as tax or legal advice. Always consult with your legal, tax or financial advisors before implementing any gift plan. If you would like to learn more about including your parish in your estate plans, please contact us any time. We exist to exclusively serve you and your parish in planned giving. For more information on the CCF, visit www.archindy.org/CCF, e-mail ccf@ archindy.org, or call 317-236-1482.) †