your ability to give more
Launch asset-based giving program
[insert your ministry logo here]
Ready to take your giving to new heights?
Giving is headed down a new path that’s destined to go beyond just writing checks. With Launch, our new asset-based giving program, we can show you how to get there. This innovative new approach can help you move beyond checkbook philanthropy to a lifetime of growing generosity. Launch gives you the power to save taxes, further more Kingdom work, and plan better for the needs of your family. And best of all, you’ll experience the joy of seeing the fruits of your giving now, while you’re living. Let us show you how your giving can really take-off.
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There are three primary uses for money: give to charity, spend it on lifestyle or pay taxes giving
giving lifestyle
lifestyle
before Launch
after Launch
(cash-based giving)
(asset-based giving)
So normally, if you want to increase the amount you give, you only have one option: to cut into your lifestyle expenses (left). But now you can increase your giving by reducing your taxes (right). This is wiser stewardship, and it’s possible by simply changing what you give, rather than how much you give.
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Asset-based giving: a smart alternative to cash The average American’s wealth is comprised of only 7% cash. The other 93% percent is in stocks and non-cash assets such as real estate, business interests, precious metals, and personal property. But most giving is done by cash and check – the smallest portion of a giver’s net worth! Now you can start giving non-cash assets and discover a powerful double blessing: receiving a much greater charitable tax deduction and avoiding capital gains taxes.
real estate precious metals
93%
personal property business interests
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7%
1 Less to taxes
The big advantage of assetbased giving
By donating non-cash assets first – rather than selling them first, paying taxes, and giving the net proceeds – you typically receive a tax-deduction for the full fair-market value of your gift, as well as avoid capital gains taxes.
2 More to ministry The capital gains taxes you save from giving the asset directly to charity means more goes to support the work of God’s Kingdom, instead of to Federal and state governments.
3 Personal savings Because you receive the full tax deduction for the fair-market value of the asset, you’ll see great savings on your personal income tax returns. This means more money stays in your pocket for your lifestyle expenses or additional giving.
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Real estate – land, houses or other properties
You can give most any type of appreciated non-cash asset
Business interests – ownership in closely-held businesses, Limited Partnerships, limited Liability Companies or Sub-chapter S corporations
Personal property – royalties, copyrights, patents or precious metals like gold
Restricted securities – publicly traded securities that may have sale restrictions
Loan notes – money owed to you through loan notes Estate gifts – proceeds from wills, trusts or life insurance policies Retirement plans – 401Ks, IRAs or pension plans Life insurance – term, whole, universal or variable
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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 10-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 that he would owe taxes of $94,500 upon the sale. Fortunately, the ministry he was supporting told him about Launch. Through Launch, he was able to give his property directly to the ministry, which then liquidated it to fund the Master’s new project.
How did Launch help him be a wiser steward? > He avoided capital gains tax, saving $94,500, which went to the Kingdom rather than taxes.
> He received a higher income tax deduction of $500,000, the fair-market value of the property.
> He gave more to ministry…$500,000 instead of $405,500. > He honored his daughter by using the extra $38,745 tax savings to support her college education.
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A Tale of Two Stewards
Here’s a comparison of two stewards and two different giving options. Who do you think is wiser?
Gift
Taxes
Amount
Taxes saved
to charity
to government
of income tax deduction
from income tax deduction
A.
Steward #1: Sold asset then gave proceeds
$405,500
$ 94,500
$405,500
$166,255
B.
Steward #2: Gave asset before sale
$500,000
$0
$500,000
$205,000
By gifting his asset prior to selling, Steward #2's tax savings increased by $133,245, he avoided writing a check to the IRS for $94,500 and $94,500 more went to Kingdom work!
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...there’s a better way to give
There’s a lot riding on the vision God has given you for expanding His Kingdom. That’s why we’re so thankful to be able to offer you this creative new way to give. And when you start to Launch your generosity to new heights, you’ll be praising God too...for years to come.
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Ready to take your giving to new heights? [insert your ministry phone number & web address here]
[insert your ministry contact info here]
[insert your ministry logo here]
Š 2009 The National Christian Foundation. Used under license.