Proactive Philanthropy
At South Carolina Christian Foundation we want you to think differently about charitable giving.
The Giving Fund
Also called a Donor Advised Fund, this tool allows you the ability to leverage a variety of personal assets, take advantage of pre-tax benefits, and accomplish your charitable goals in a strategic way that’s not commonplace. At SCFF, our desire is to simplify giving for the donor.
What are the benefits of having a Giving Fund?
- Helping You Become Tax-Wise: The Fund allows you to gift an asset, or a portion of an asset (cash, stocks, real estate, small business, etc.), before actually selling the asset. With this scenario, you would receive the maximum tax deduction from the gift as well, avoiding the tax on the gifted portion post-sale. Essentially, your Giving Fund can help you obtain the maximum deductions as well as avoid capital gains tax. Make as many deposits as you wish during the year and, annually, receive only one tax receipt, listing all, for your tax preparation. All of this simplifies your giving and makes it more impactful for you and the causes you support.
- Donor Flexibility: Whether you choose to give one time or to give a certain amount over time, we can accommodate for your personal giving calendar or schedule and help you remove the headache of monthly bill pay or remembering to write a monthly check. At any time, you may request a donation be made from your Fund to charitable causes you choose; whether local, national, or international. You can even set up recurring gifts to be a consistent financial partner. Clients of SCCF can choose to give anonymously from their fund or allow their name to be presented as the donor. With these flexibilities, you are free to be responsive when impressed to give and make as many deposits as you wish, providing opportunities for you to better incorporate giving into your overall financial plan.
Complex & Asset-Based Giving
Stewardship is about managing and directing assets to accomplish a desired impact. SCCF provides information helping you decide the most creative and strategic way to accomplish your impactful goals. Contact us about the variety of asset types you can use for gifting and the potential tax savings it may bring to you.
Cash
Cash, given by check or through online portal, is the most widely used asset when it comes to charitable giving. However, since most of cash assets have experienced some tax consequences, giving cash does not allow you to enjoy certain tax benefits other asset types provide. It may be that giving cash “costs” you more due to the loss of tax savings and online donor fees. Let SCCF assist you in accomplishing your giving goals, maximizing your tax deductions, and making giving simple.
Stocks & Securities
Gifting stocks, bonds, mutual funds, and ETFs is a great way to transform appreciation and interest into charitable dollars. And is usually a more tax-efficient way to give compared to donating cash. When you give stocks and securities, you receive the full fair market value, avoid the capital gains tax, and reduce future gains tax by resetting your cost basis. These allow you to give more to the causes you care about most.
Real Estate
Real estate is likely your most highly appreciated asset. Whether it’s the second home, rental property, undeveloped land, or a commercial investment, if you have held it more than a year and are considering selling, the capital gains tax owed could be significant.
By gifting a portion or all of the property, you can reduce or potentially eliminate the capital gains tax incurred and claim the fair market value charitable deduction for the property gifted. The tax avoidance can increase the amount you have to give while the tax deduction can help your personal bottom line.
Business Interests
By gifting, into your Giving Fund, a percentage of your business, prior to its sale, you reduce the taxable portion of the business when it sells and receive a significant tax deduction for the fair market value of the portion gifted.
The portion gifted, when sold, does not incur any capital gains tax which allows more of the proceeds of the gifted interest to go to your Giving Fund and less to taxes. Because of your gift before the sale, you hold less taxable interest in the business so you will pay capital gains on lesser amount. This is a significant tax savings. Additionally, you claim the tax deduction for the gifted portion increasing the amount you keep for yourself.
Even if you are not selling your business, there are ways to use business interests for strategic gifting and tax wise financial planning.
Other Assets
Most any asset, even retirement plans, 401Ks, IRAs, and life insurance, may be used for gifting purposes with some reducing your overll income tax. Some asset types call for more complex charitable strategies while other types may have better tax advantages. What to give and how to give are best determined in considering your current financial status and your overall financial goals. SCCF can help you navigate the intricacies of each asset type and the implications for charitable tax deductions. You and your financial advisors can then determine what is best for you.
Estate Planning
A Giving Fund can be very beneficial as part of your Will and Estate Plans. Gifting complex assets removes them from your estate, reducing its value, and secures certain tax benefits that may offset estate tax liabilities.
You can designate how your Giving Fund is to operate so that your giving continues as your legacy. You can make changes to your legacy gifts plans at any time at no cost to you without having to reconstruct your will.
You can also establish Giving Funds for your heirs to pass along the joy of giving as part of your legacy.
How Can SCCF Help?
South Carolina Christian Foundation provides creative and strategic information regarding how to maximize the tax benefits when gifting various types of assets. Together, you, your advisors, and our team at SCCF can decide what innovative tools and techniques can help best gift the assets most beneficial to you and your personal charitable goals.
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