Giving Tangible Personal Property

The most common types of tangible personal property that can be contributed to the ministry include:

Artwork
Jewelry
Gems
Precious metals

Here's how it works (using art as an example)

Example

Charles and Catherine donate a painting to Capitol Ministries's Capitol Ministries National Fund. They purchased the painting years ago for $50,000, but today, it's worth $500,000. They take an immediate tax deduction and pay no capital gains on the asset transfer.
SCCF sells the painting for Charles and Catherine, placing the net proceeds into the Capitol Ministries National Fund.
Charles and Catherine may recommend grants from the Capitol Ministries National Fund to their favorite areas of ministry within Capitol Ministries.

What makes your asset an appropriate gift? The asset:

has been held by you longer than one year
has appreciated in value
is transferable (not under contractual obligation or other agreement with someone else)

Why should I donate tangible assets?

You may receive a greater tax deduction, generally for fair market value
You avoid capital gains taxes upon sale of the asset, and lessen your estate tax liability
SCCF handles the administrative burdens for you
Because of your deduction, it will cost you less to give more!

Should I give the personal property, or sell the property and then give?

Scenario A shows the wisest choice.

Scenario	Gift to Charity	*Gift to Gov't	Income Tax Deduction	Value of charitable income tax deduction at 41%	Out-of-pocket cost to make the gift
A. Gift Asset before sale	$500,000	$0	$500,000	$205,000	$295,000
B. Sell asset, then gift proceeds	$405,500	$94,500	$405,500	$166,255	$333,745
*Assumptions: 35% Federal, 6% sales tax rates, $50,000 asset basis, $500,000 fair market value (FMV), donor held asset over one year and gives 100% of interest

Capitol Ministries National Fund is a component fund of Servant Christian Community Foundation. The information presented on this website is published with the understanding that in this information, the authors are not engaged in rendering legal, accounting, or other professional services. We strongly urge that you consult with your attorney, financial advisor, insurance agent and/or tax advisor to review and approve this complimentary educational information. This information in no way constitutes legal advice. It is not intended to analyze your particular situation, but is broadly educational in nature. We gladly will work with your independent advisors to assist in any way.