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Planned Gifts

A planned gift is usually defined as a gift that requires a professional in order to complete. Below are some examples of assets that are commonly gifted. We can provide you with general information on various gifts of assets.

Gifts of Stock

Stock may be gifted directly to a United Methodist entity or to the United Methodist Foundation for the benefit of a particular United Methodist church or agency by electronic transfer or paper-certificate transfer.

Electronic Transfer

  • The donor contacts the church or the Foundation to receive the account information and transfer instructions for the donor’s broker.
  • The donor’s broker executes an electronic transfer of the stock into the account of the church or the Foundation.
  • The donor receives a charitable deduction based on the average between the high and low of the stock’s valuation on the date the stock is received into the account of the church or the Foundation.
  • The church or Foundation provides a receipt to the donor for tax purposes.

Paper-Certificate Transfer

  • The donor mails or personally delivers to the church or the Foundation:
    • The stock certificate
    • A letter of instruction for the use of the gift signed by all the owners on the certificate
    • A copy of the driver’s licenses of all the owners on the certificate
    • A stock power signed by all of the owners on the certificate
      Irrevocable Stock or Bond Power
  • The donor receives a charitable deduction based on the average between the high and low of the stock’s valuation on the date the stock is postmarked or hand-delivered to the church or the Foundation.
  • The church or Foundation provides a receipt to the donor for tax purposes.

More details on gifting stock to your church

Gifts of Personal Property

  • The amount of a non-cash charitable contribution is generally the property’s fair market value at the time of the contribution.
  • If the gift is tangible personal property, it must be related to the purpose of the charity; otherwise the deduction is limited to the donor’s basis in the property.
  • If the gift is over $500, the church or other charity acknowledges the receipt of the gift on Federal Tax Form 8283.
  • Establishing the valuation of the deduction is the responsibility of the donor, and may in some cases require the services of a qualified appraiser.

Gifts of Real Estate

  • Charities often have strict policies regarding the receipt of real-estate gifts. In many cases there is a requirement for an environmental impact evaluation to be sure that there is no potential for any Superfund liability.
  • The amount of the real-estate fair market value as determined by a qualified appraiser at the time of the contribution is the amount of the charitable contribution.
  • Often the charity will engage their own appraisal to verify the appraisal received by the donor.
  • The church or other charity acknowledges the receipt of the gift on the Federal Tax Form 8283.
  • If the church or charity disposes of the property within three years of the receipt of the gift they must report the proceeds of the sale to the IRS.

If there are any about planned gifts you’d like us to address, please send us an email.

 
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