When it comes to stewardship and charitable giving, most churches only think about cash donations. But most of the wealth in congregations is tied up in non-cash assets, many of which can be given as charitable donations.
These non-cash assets are often called “complex gifts” because they’re not as simple as cash to process and receive. Communicating these alternative gifts to your congregation and being set up to receive them could make a big difference in the financial flourishing of your church.
Here are three types of non-cash assets your church members can give:
#1: Stocks, Bonds, and Other Securities
One of the most common types of complex gifts are securities, like stocks and bonds. When members donate securities to their church, they pay no capital gains tax on the appreciated value of their securities. Doing so means your church members avoid the tax on capital gains, maximize the return on investment, and protect the tax credits for use against other taxable income.
#2: Donor-Advised Fund (DAF)
A donor-advised fund is a simple, flexible, and tax-efficient way for Christians to give to their favorite charities, including your church. Donor-advised funds are one of the fastest-growing charitable giving vehicles in the United States because they are one of the easiest and most tax-efficient ways to give to charity. RBI recommends utilizing the PCA Foundation’s premier offering, the Advise and Consult Fund ®, which is free and can be opened with an initial gift of just $1,000.
#3: Qualified Charitable Donation (QCD)
A QCD is a direct transfer of funds from an individual’sIRA custodian account, payable to a qualified charity. In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. For those 70.5 and older, QCD’s can be counted toward meeting your required minimum distributions (RMDs) for the year, if certain requirements are met.
Get Your Church Set up to Receive Complex Gifts Today
One of the biggest benefits of being set up to receive complex gifts is that doing so greatly increases tax savings for congregants, thereby enabling them to give far more to the kingdom building initiatives they are most passionate about. If your church is not currently able to receive non-cash donations, RBI can help.
RBI has established ways for individuals to donate non-cash assets to the Ministerial Relief Fund to serve PCA ministry workers in need and can walk you through the process.
To learn more about getting your church set up to receive securities or QCDs, email Chris Zurbach, our Director of Philanthropic Giving, at email@example.com. To learn more about DAFs, visit pcafoundation.com.
Geneva Benefits Group serves those who serve others, providing practical support for the financial, physical, and mental wellbeing of people who work in full-time ministry.