Non-Cash Gifts

Most people primarily think about making cash donations to the church. But if you have investments, a business, or real estate that has gone up in value since you purchased it, and you are giving to the church from your checking account, you may be missing a significant opportunity to save on taxes and potentially amplify your giving.

Appreciated Investments:

Many people invest for their future using a taxable investment account. As these investments appreciate, there is a looming tax bill due in the future when you sell the asset. Through the stock donator website, you can give these assets to the church directly, then when the church as a tax-exempt entity sells it, no tax is paid. Then you can re-purchase the asset using your cash and now you have a higher tax basis, thereby reducing the future tax you might owe.

Real Estate:

Many people own rental real estate properties, which often are depreciated for tax purposes to make the rental income more tax efficient. However, this increases the tax bill they will owe in the future when they ultimately sell. If you have a piece of property you would like to give to the
church, don’t sell it yet! Let’s chat about your options. There may be a big opportunity to eliminate the capital gains tax you would owe!

Qualified Charitable Distribution:

If you are over age 70 ½ and have a 401(k) or Traditional IRA, you are not far from the IRS Required Beginning Date – that time when the government forces to take a distribution so they can tax you on the proceeds. If you are giving from other cash assets, giving through a Qualified Charitable Distribution may be a better idea for you. You can simultaneously satisfy the IRS Required Minimum Distribution and give to the church while paying zero income tax on the distribution. (for 2026, there is a limit of $111,000 per individual)

Donor-Advised Fund:

If you have a large asset like a business or real estate and would like to sell the asset but are currently unsure how much or where you would like to give from the proceeds, a Donor-Advised Fund may be a great option to tax-shelter some of those proceeds, get a large tax deduction, and have the flexibility to decide later how you direct your giving.

As always, we recommend that you speak with your tax, legal and financial advisors regarding specific advice.

For more information on how to give these types of securities to Soma, email info@somaspokane.org.

Please note: our legal name is 'The Vintage Faith Community'. 501(c)3 Tax ID:  65-125239