If you’re like me, when you hear this statement it is probably time to run the other way. If it sounds too good to be true, it probably is…unless that is if you’re following God’s command. Luke 6:38 says:
Give, and you will receive. Your gift will return to you in full—pressed down, shaken together to make room for more, running over, and poured into your lap. The amount you give will determine the amount you get back.
Believe it or not, there is a way you can make a donation benefiting both you and the church. Giving appreciated assets can be a win-win. Appreciated assets are investments that have increased in value over what you paid for them, meaning you have an unrealized gain. When you sell the asset you’ll need to pay taxes on the gain, that is unless you donate the asset to the church.
Let’s say you invested $1,000 in a stock several years ago. Over time price of that stock has increased and your investment is now worth $3,000. In this case you have a $2,000 unrealized gain which when you sell the stock you’ll need to pay taxes on that gain. Instead, you could donate the stock to the church. The church is not required to pay taxes on the gain and instead would get the benefit of the full $3,000. If you itemize on your taxes, you can deduct the asset’s value at the time of donation.
As we approach the end of the year, consider donating an appreciated asset. The church benefits from your generosity, no one pays capital gains taxes on the assets, you can deduct the value of the asset on your taxes, and both you and the church have a positive gifting experience.
Contact your financial advisor or Zion’s financial administrator for more information.
Thank you for your financial support of Zion.