Deeply rooted in Christian heritage, the
St. Paul’s Foundation provides a permanent fund that generates investment income. The fund exists and grows because of gifts from St. Paul’s members and friends.
Your gifts in whole or in part can be Unrestricted, which benefits the congregation directly by adding to the unrestricted fund, or can be Designated, which allows you to specify a ministry or activity that most concerns you or your loved one by designating your gift.
“What forms of non-cash contributions may I give to St. Paul’s United Methodist Church?”
Non-cash contributions may include:
Publicly traded securities
Closely held stock
Paid insurance policies
Charitable lead trusts
Long-term appreciated capital gain property (such as stock) is one of the most common ways to make additional gifts. These gifts are tax deductible at the full fair market value subject to some limitations. Also, the gain is not subject to taxation to the donor or the church.
Donor paid $2,000 for stock now worth $10,000.
If Donor sells the stock, he/she pays capital gains taxes on the $8,000 gain.
If Donor gives stock to church neither donor or the church pays taxes and donor receives $10,000 tax deduction.
Gifts of closely-held 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.
Tax deductible gifts of personal property may include antiques, art, jewelry, vehicles or boats, coin or stamp collections, as well as other valuable assets. These gifts of personal property have varying tax deductibility requirements so be sure to consult with your tax advisor about such requirements. While the Church is grateful for every donor’s intent to give, some personal property donations must be approved by the Board of Trustees.
Paid Insurance Policies
Families often have paid 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 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.
A lead 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 the 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 may be an estate tax savings.
A gift of real estate generally will generate a tax deduction for the full appraised fair market value. Like securities, the capital gain is not taxable to the donor or the church. All donations of real estate require the approval of the Board of Trustees. To discuss the donation of real estate, please contact Shirley Stoffer who will put you in contact with a representative from the Board of Trustees.
Gifts-in-kind are products or materials that you can give to aid particular projects being undertaken by the Church.
Construction materials: concrete, lumber, bricks, roofing, paint, etc.
Building materials: windows, doors, plumbing, lighting, flooring, etc.
Furnishings: Tables, chairs, audiovisual equipment, appliances, etc.
Deferred gifts are gifts that are received some time in the future by the church. During that time, the donor retains an interest in the assets. Examples include bequests, estate notes, charitable remainder trusts, charitable gift annuities, “Pay on Death” accounts, IRA beneficiary, life insurance.
For more information on any of these ways to give, contact:
John Rivas, President — John@NMCMFI.org
Lisa Massimo, Director of Communications — Lisa@NMCMFI.org
New Mexico Conference Methodist Foundation
505-255-8786, ext. 113
You should always consult with your own tax advisor as to the tax deductibility of gifts in your particular situation.