Fishhook partners with National Christian Foundation Kentucky to enable supporters to contribute non-cash gifts.
If you have appreciated stocks or mutual funds in a taxable investment portfolio, you likely have an opportunity to pay less tax, give more, improve your personal cash flow, and simplify your giving. Check out this publication from the National Christian Foundation Kentucky.
Fishhook partners with the National Christian Foundation Kentucky (NCFK) to provide our donors assistance in managing and liquidating "complex gifts" such as real estate, business interests, restricted securities and personal property. Fishhook and NCFK handle the administrative burden by selling the asset for you and allowing you to receive the full tax benefit for your gift. There are a variety of ways you can give non-cash assets, including full or partial interests. You can give during your lifetime or, with proper planning, upon your death. Such gifts usually provide you with a far greater tax deduction, allowing you to give more to the work of the Lord than if you sell the asset first and then donate the proceeds. Some gifts are able to provide continuing income to you or your loved ones as well. Non-Cash gifts can include:
- Stock and Mutual Fund shares
- Restricted securities (Rule 144 & 145) - publicly traded securities that may have sale restrictions
- Vehicles - cars, boats, RVs, motorcycles, trucks, farm or construction equipment
- Real estate - land, houses or other properties
- Business interests - ownership in closely-held businesses, limited partnerships, limited liability companies or Sub-chapter S corporations
- Loan notes - money owed to you through loan notes
- Estate gifts - proceeds from wills, trusts or charitable gift annuities
- Retirement plans - 401Ks, IRAs or pension plans
- Life insurance - term, whole, universal or variable
- Personal property - royalties, copyrights, patents, precious metals, or artwork
NCFK is one of a nationwide network of Local Christian Foundations that are affiliated with The National Christian Foundation (NCF). Since 1982, this network has granted more than $1.6 billion to over 15,000 churches and ministries worldwide. Like Fishhook, NCF is a member of the Evangelical Council for Financial Accountability (ECFA).
The Parable of the Steward who Gave Before Selling
Once there was a Steward who bought a beach house for $50,000. After 25 years his property had increased in value ten-fold and was worth $500,000. His Master commanded him to use this valuable asset to fund a new project for His Kingdom. So, he decided to sell the property and give the proceeds to his Master’s ministry. As he was preparing for the transaction, he learned he would owe taxes of $94,500 upon the sale. Fortunately, he was able to give the property directly to the ministry through his account at KCF, which then liquidated it to fund the Master’s new project. As a result:
- He avoided capital gains tax, saving $94,500 which wentr to the Kingdom rather than taxes.
- He received a higher income tax deduction of $500,000, the fair market value of the property, saving him an additional $38,745 in come taxes.
- He gave more to the ministry: $500,000 instead of $405,500
- He honored his daughter by using the extra $38,745 tax savings to support her college education.
(National Christian Foundation, Launch p.9)