Charitable Giving: Four ways to make a charitable gift

September 20, 2011

Like other nonprofit organizations, Concordia Lutheran Ministries relies on the generosity of donors to help fulfill its mission of caring for others. Many people choose to contribute their time and resources in support of their charitable interests. Today, it is important to carefully consider your gifts and make them in the most cost-effective ways. This post will briefly cover four of the most common ways to make a charitable gift.

Giving Cash: Cash, usually in the form of a check, is most commonly used to make charitable gifts. More donors are also choosing to make cash gifts through electronic funds transfer (EFT) as well. Gifts made through EFT can be established as a one-time gift or as ongoing gifts made on a weekly, bi-weekly, or monthly basis.

Giving Securities: Low-yielding stocks, mutual funds, or other securities that are worth more than the original buying price, can be consider when making a charitable gift. By making a gift of appreciated stock, the donor may receive a tax benefit based on the stock's value and an exemption from capital gains tax.

When securities have decreased in value, it is usually best to sell that security and make a charitable gift of the cash proceeds. The donor could potentially claim tax benefits for both a capital loss and the charitable gift.

Retirement Funds and Life Insurance: There can be special tax and other benefits when making gifts using retirement account assets and life insurance policies.

Donors over the age of 70

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