Joyful Non-Cash Asset Giving
Gifts of Appreciated Assets are often overlooked but can generate extraordinary benefits. In addition to the ubiquitous form of outright contributions, certain gifts retain benefits.
CityHouse has donor-centered representatives available to assist as a preliminary resource in exploring your charitable interests and considerations, or address any questions with you.
Below is a list of non-cash asset giving opportunities:
Gifts of Appreciated Stock
Did you know giving appreciated public stock and securities can be more advantageous than giving cash? Both receive charitable income deductions for the current Fair Market Value. But giving appreciated stock, held beyond 12 months, could eliminate LT capital gains taxes since 501(c)(3) charities do not incur capital gains taxation. You might even consider exchanging stock gifts in lieu of equivalent cash gifts and buy-back like securities with the new stepped up cost-basis. Stocks must be a direct gift transfer to the National Christian Foundation on behalf of CityHouse from your brokerage firm.
Important: Please consult with CityHouse on your stock gift intentions.
Charitable Gift Annuities
A "split-interest gift" is an exchange of Appreciated Securities (or cash) for guaranteed fixed life-income payments to one or two beneficiaries, with highly favorable (age-based) payout rates up to 9.7% (current 2022 American Council on Gift Annuities tables on one life at 90+yr age.) Benefits may include income tax deductions, partial tax-free income for donor(s)' life expectancy, and partial capital gains tax avoidance on donor(s)' Appreciated Securities. (The ACGA schedules are targeted toward a collective average residuum of 50% for charitable benefit. Some reinsurance of the annuity income may allow for immediate charitable use). The National Christian Foundation (NCF) currently issues CGAs for the charitable benefit of CityHouse.
Deferred Gift Annuities
Deferred income for years versus the aforementioned immediate CGA may be helpful in retirement planning to supplement future income plans. Payout rates increase with the duration of the deferment and hence, a higher deferred beneficiary age.
Pooled Income Funds
One more "split-interest gift" is an exchange of cash or appreciated securities for pro-rata life-income from the commingled pool of donors' invested shares. May be more appealing to younger donors and offer some increased tax benefits.
Charitable Remainder Trust
Another "split-interest gift" usually entails a transfer of Appreciated Assets into a qualifying Trust arrangement for life-income or a term of years (20 yr. maximum) to beneficiaries. The remainder then transfers to one or more qualified charities like CityHouse. Depending on the complexities of assets or beneficiary terms, there are numerous variations of CRTs that can be structured to maximize benefits.
Charitable Lead Trust
This is the reverse of the aforementioned CRTs in which a qualified Lead Trust provides income from assets to one or more qualified charities like CityHouse during the term of the Trust, than assets revert to the named beneficiaries. There are special tax favored benefits depending on the Trust's grantor(s) or non-grantor(s).
Blended Gifts (a current or future gift)
A partnership to enable donors to fund a large project/program/endowment with current giving in conjunction with deferred gifts, likely involving long-term Appreciated Assets, and/or with legacy/estate considerations.
Retirement Accounts (Lifetime)
Convert your RMDs into QCDs. With the IRA Charitable Rollover/ Qualified Charitable Distributions (QCDs) of up to $100,000 annually to satisfy Required Minimum Distributions (RMDs) for donors age 73 or more in 2023. Avoid a potentially higher tax rate from RMDs by authorizing a direct distribution to CityHouse with your IRA administrator.
ESTATE: Charitable beneficiary designations of IRAs and Retirement Funds provide some of the greatest impact and best stewardship due to their fully tax-free transfer.
Real Estate Gifts
A very generous gift of real estate was highly instrumental in founding the CityHouse mission. Today, additional housing is vitally critical to serving the increasing needs of more families. Real Estate values have soared with capital gains tax implications and present extraordinary opportunities for tax wise charitable arrangements. A Retained Life Estate deed provides considerable tax benefit, allowing the owner to retain and reside.
Business Interests, Closely-Held Stock, Partnerships
When the time comes to transfer for sell a business interest, astute advisors often suggest a pre-contact charitable carve-out.
Charitable Bequests, Wills and Beneficiary Designations
Donor designates and assigns a charity a specific, general, percentage or residuary bequest of various assets.
Charitable Bargain Sale
Sell your property at a discount, deduct the FMV difference and receive a lump sum or installment. May also involve debt on the transferred property
Donor Advised Funds
CityHouse is delighted to accept recommended distributions from DAFs. Donors make the non-revocable gift transfer for an immediate one-time and complete charitable deduction, but defer their charitable recommendations to a future time and place.
Accepts and holds the principal of donation sums in perpetuity for recurring annual income-generating support.
Note- some gift plans require certain minimums with age and gift amounts, as well as payout frequency. This information should not be relied upon as legal, tax or accounting advice, but only as an introductory reference to established charitable gift planning considerations. You should always consult with qualified professional financial advisors to determine your personal benefits with specific charitable planning.
CityHouse is a tax-exempt 501(c)(3) charitable organization established in 2014-Fed Tax ID 46-3890624.