Ways to Donate
ASSET CONTRIBUTION POLICY
Gifts of Appreciated Assets/Stock
One of the most tax-advantaged methods of giving is a gift of appreciated assets, typically liquid assets such as stock, mutual fund shares or bonds. You may also give appreciated real property or personal property. See – Gift of Personal Property/Real Estate – below.
Appreciated assets are assets that have increased in value since you acquired them. Typically, if you sell appreciated assets, you must pay tax on the amount the assets have increased in value – either at your normal tax rate or at a capital gains rate.
However, if you contribute appreciated assets (without converting them to cash first), you can generally deduct the full market value of the assets contributed as of the date of your contribution, without paying any tax on the amount the asset has gone up in value since you acquired it, provided you have owned the asset longer than one year.
How to Contribute Appreciated Assets
If you wish to contribute appreciated assets, do not sell them yourself or you will be taxed on the gain. Instead, you should:
- Contact your tax advisor to discuss your gift.
- Contract Hope’s Chief Operating Officer at 515-222-1520 to confirm that you intend to make a contribution of appreciated assets and to assist in the gift transfer.
- Get instructions from the church to complete the transfer.
Gifts of Personal Property/Real Estate
If you would like to give personal property such as fine jewelry, cars or coin collections, or real estate, please keep in mind the following:
- The church cannot accept an asset with any debt attached to it, or which has any contingent liabilities (such as real estate which could be contaminated or have a title defect).
- The church cannot give you an appraisal. We can only acknowledge that you gave the gift by providing a confirmation letter. (Note: the IRS requires any gift over $5,000 except marketable securities to have a qualified appraisal. You will want to have this done before giving your item to the church.)
- It is better to give an appreciating asset to the church instead of selling it yourself and giving the money. By doing this, you avoid capital gains tax. (See the first section for why this matters to you.)
- It is better to sell a depreciating asset yourself and give the cash to the church. For assistance in this area, please call the Chief Operating Officer at 515-222-1520.
- The contribution of an automobile, boat or piece of real estate is limited to the gross sales price of the item received by the church.
Please call first before bringing your asset to the church office, or if you plan to bring a large item on the day of the offering!
Hope has established a foundation, Hope for Eternity, which is dedicated to furthering the mission of Lutheran Church of Hope long into the future. The Hope for Eternity Foundation provides donors the opportunity to use planned or deferred gifts (wills trusts, gift annuities, life insurance, etc.) to endow funds supporting Hope ministries and missions.
For more information contact the church at 515-222-1520.