Most of the conversation around charitable giving falls into two categories, cash gifts and planned giving. A barbell model illustrates the two main ways of giving – cash gifts now and planned gifts, made after death.
The vast majority of all donations to charity are cash, which is the funding method that nonprofits request most often. Cash gifts and planned giving are important, but there is a third way to give. Your best donors may be able to make non-cash gifts now, while they’re still alive.
Cash typically represents less than 10% of a household’s wealth profile, but is the source for 80% of all charitable contributions. The bulk of a household’s wealth is found in non-cash assets (valuable holdings like real estate, closely-held businesses, and oil and gas and agricultural interests) by tapping into these assets, givers can unlock their giving potential and multiply their giving impact on those churches, ministries, and charities about which they are passionate.
There are three benefits when nonprofits like yours make non-cash gifts:
1. By giving appreciated assets, givers bypass paying capital gains taxes.
2. Givers receive an immediate tax deduction based on the fair market value of the asset.
3. Your charity receives much-needed financial resources now.
When we look at the barbell, we should see three sections, cash gifts, planned giving, and gifts of appreciated assets. Next time you plan your next fundraising campaign, don’t just ask supporters to reach for their checkbook. You can unlock the giving potential hidden in their appreciated assets that the Lord has entrusted to them. Through asset-based giving your donors can render more unto God and less to Uncle Sam.
WaterStone helps donors by unlocking their giving potential. We craft innovative giving strategies for donors who own real estate, businesses, oil & gas interests or agricultural commodities.
With WaterStone as your partner it’s a win, win, win: your ministry wins with increased resources, your donors win by saving on taxes and multiplying their giving impact, and in the end, the Kingdom wins.
One phone call can put your ministry on the fast track to multiplying your resources and transforming more lives.
We invite you to join the WaterStone community of giving and all of us at WaterStone look forward to getting to know you and serving you and your donors at the intersection of faith and finance.
Vice President of Giving Strategies, WaterStone