419.289.2126   508 Center Street, Ashland, Ohio 44805  Folk - Sat. 6:30pm | Traditional - Sun. 8:30am | Festive - Sun. 10:45am | Praise - Sun. 10:45am

Gifts & Support

A Gift to Trinity Lutheran Church is tax deductible, as allowed by law, and can take many forms.  In all cases when considering a charitable gift, a confidential discussion with the pastor is recommended as a preliminary step.  Working with your personal financial advisor, banker, insurance agent, tax advisor or broker is highly recommended as well.  Your gift will support Trinity's people in their mission to do God's work here in Ashland and help enable us to continue to support our outreach.

 

Forms of Gifts:

  • Cash
  • Stock
  • Bonds
  • Life Insurance
  • Tangible personal property
  • Mutual Funds
  • Qualified Retirement Plan Assets
  • Life Income Gifts
  • Real Estate

Cash
Cash, usually in the form of a check is the most common form for a charitable gift.  Cash gifts enable you, the donor, to claim income tax deductions of up to 50 percent of your adjusted gross income in the year the gift is made with a five year carry-forward period.  The higher the tax bracket the less the cost of the gift.

 

 

Stock
Donors who contribute long term appreciated securities to Trinity receive a double federal tax benefit.  Gifts of appreciated stock are deductible at their full market value if held longer than 12 months.  Fair market value is the mean between the high and low trades on the date of the gift.

The Capital gains tax on the stock's appreciation (the difference between the property cost basis and its present fair market value) is avoided.

The fair market value of the donated securities can be deducted up to 30 percent of the donor's adjusted gross income, with a five year carry-forward if required. 

 

Closely Held Stock

Closely held stocks are shares in a privately owned business.  The shares are usually owned by family members, top management and the corporation itself. 

The stock can be contributed outright to Trinity, and the donor is entitled to a deduction for the appraised fair market value.  The donor avoids the potential capital gains tax on any appreciation in the value of the stock. 

Subsequent to the gift, the congregation may sell the stock to the corporation or to other shareholders for cash.  There can be no prior agreement between the charity and a potential buyer before the gift is made. The donor is entitled to a deduction for the full value of the stock up to 30 percent of his or her adjusted gross income. A "qualified appraisal" is required if the claim exceeds $10,000.

 

Bonds
Although not usually as advantageous tax-wise as stocks, they are an excellent source.

 

Life Insurance
In considering a charitable gift, life insurance is a common resource that is often overlooked -- and a convenient gift.  You may have an individual policy that has outlived its original purpose or have group life insurance as a benefit through your employer.  Using an existing policy or purchasing a new one is an easy way to make a significant gift to Trinity.

 

  • Add Trinity as beneficiary.

Regardless of the reason why you have life insurance or whom you have chosen to receive the proceeds, you can always add Trinity as an alternate beneficiary to a new or existing policy.  If the individual named as the beneficiary of the policy does not survive you, Trinity automatically becomes the recipient of the insurance proceeds.

 

  • Include Trinity as one of the primary beneficiaries if your current beneficiary will not need the entire amount of the policy.

For example, you could designate that your existing beneficiary will receive 60% of the insurance proceeds and name Trinity as the beneficiary of the remaining 40%.


HOW:  To add Trinity as a beneficiary to an existing policy, simply contact your insurance agent and ask for a "change of beneficiary" form.  Then complete the form to include Trinity as a beneficiary and return it to your insurance company.  While no income tax benefits are available for naming Trinity as a beneficiary, any funds that are finally paid to Trinity will be deductible as a charitable gift for federal estate-tax purposes.

 

  • Give an existing policy.

Perhaps you purchased an insurance policy for a specific purpose, but now find that the need for the policy no longer exists.  In that event, you may want to consider giving the old policy to Trinity.
HOW:  A gift can be accomplished by simply completing an “assignment of policy” form obtained from your insurance agent.  Because you are transferring the ownership of the policy to Trinity, you are entitled to a current charitable deduction for federal income-tax purposes.  The amount you can deduct is the "interpolated terminal reserve" value of the policy which your insurance agent can calculate for you.

 

  • Buy a new policy.

You may be able to make a significant gift to Trinity by purchasing a new life insurance policy with Trinity as the beneficiary.  If you name Trinity as the owner of the policy as well as the beneficiary, the yearly premiums you pay are tax deductible.
WHY:  the premiums are deductible as a charitable contribution.  For example, if you purchase a single-premium life insurance policy for $5,000 and name Trinity as the owner and beneficiary, you would receive an immediate income-tax deduction of $5,000.  The policy begins to earn interest on the cash value plus interest in addition to the face amount of the insurance.  In this way, you can ultimately make a very substantial gift to our congregation.

 

Tangible Personal Property
Gifts of tangible personal property include personal property such as art, antiques, collectibles, jewelry, rare books, stamp and coin collections, etc.  When gifted to a public charity, such items are deductible at full fair market value as determined by a qualified appraisal if the use of the contributed property is related to the tax exempt purposes of the charity.  For example, a gift of books to a literacy center would be deductible.  If the contributed property is unrelated to the tax-exempt status of the charity -- for example, giving the congregation a stamp collection to sell -- then the donor is entitled to a charitable deduction for his or her cost basis in the property.

 

Mutual Funds
Mutual Funds can be excellent assets to contribute to Trinity.  The fair market value of a mutual fund share is its public redemption price on the valuation date.  Gifts of mutual funds are deductible at their fair market value up to 30 percent of the donor’s adjusted gross income.

 

Qualified Retirement Plan Assets
Retirement plan assets can make an excellent charitable gift. Qualified retirement plans enjoy favorable tax treatment prior to retirement but are severely taxed at the death of the plan participant.

Primary among the incentives in the CARE Act recently passed by Congress is the IRA Rollover, which would allow individuals to transfer funds tax-free from an Individual Retirement Account or other qualified retirement vehicle to a charitable organization.  Under the provision, funds folded into a planned gift could be transferred when the donor reaches age 59 1/2.  A direct contribution to a charity could be transferred when the donor reaches age 70 1/2.

 

Trinity Life Income Gifts
You can arrange to Leave a Legacy gift through your estate planning.  Some planned gifts, like charitable gift annuities, can provide income to the donor during their lifetime, while the residual goes to Trinity at the death.  For more information see American Council on Gift Annuities.

Charitable Remainder Trusts and Charitable Lend Trusts, though more complex than gift annuities, may offer an even better resource in specific situations.

 

Real Estate
In many instances, Real Estate may either be donated outright or with the donor maintaining a life estate in the property.  Again, donor's advisors should be consulted.