Stock and Non-Cash Giving
Largest Gifts, Greatest Tax Savings
The PCA Foundation enables donors to give for the benefit of your church or other PCA organization assets that don’t fit into the offering plate. The PCA Foundation has the experienced personnel, processes, and tools to explain, plan, receive, manage, and liquidate gifts of publicly-traded stock and other securities, as well as more greatly-appreciated non-cash assets such as private business equity and real estate.
As directed by the donor, the Foundation can immediately grant the proceeds to your church. (For extraordinarily large gifts from which the donor wishes to bless your church, but which the donor will not make at all if he must do so all at once and just to your church, the Foundation can place the proceeds in a donor-advised fund for granting to your church and other ministries over time.)
Don’t overlook these surprisingly common sources of substantial funding for church ministry. And don’t lose the significant extra support a donor can provide to your church if he gives publicly-traded stock or another non-cash asset before sale rather than cash proceeds after sale. A donor who gives a non-cash asset rather than cash can provide up to 30% more support to your church.
Publicly-Traded Stock and Other Securities
Many of your members have appreciated public stock or other public securities, but can’t donate them to the church because of the limitations of church gift processing systems.
We have a gift clearing account with most of the major brokerage firms, making the process of giving publicly-traded securities seamless. Here is the process for donors to give securities for the benefit of your church:
- The donor contacts the PCA Foundation and identifies your church as the charity the donor wishes to support.
- The PCA Foundation provides the donor its account information.
- The donor initiates a transfer of securities to the PCA Foundation’s account.
- The PCA Foundation liquidates the securities and provides the donor with a charitable receipt.
- The PCA Foundation distributes the proceeds to the church and provides a confirmation to the donor.
The PCA Foundation mandates no charge for its service. However, we ask the church or the donor to direct a small portion of the gift to the PCA Foundation to help offset its operating costs. The table below provides suggested contribution levels based on the value of the gifted securities.
Gift Value Range | Charge |
$2,500 or less | $50 |
$2,501 to $10,000 | $100 |
$10,001 to $50,000 | $200 |
$50,001 or over | $300 |
Private Appreciated Non-Cash Property
The most significant wealth for giving to your church is not in cash or even in publicly-traded stock, but in closely-held appreciated non-cash property such as family or other private business stock, or real estate. And when a donor gives a non-cash asset before sale rather than cash proceeds after sale, he or she effectively doubles the charitable deduction for the appreciation in the asset, (i) avoiding capital gains tax, while also (ii) deducting the amount of the capital gain. This can vastly increase tax savings that the donor can give for your church. When you hear that a congregant is considering a sale of business or real estate, encourage the donor to give the value he or she intends to give as a portion of the asset rather than cash – BEFORE signing the sale agreement.
Resources for your church
The PCA Foundation has discipleship resources to help your church rediscover the grace and joy of giving. Subscribe for a free copy of our five-day devotional and order a set for your church.