The September 9, 2010 edition of the Chronicle of Philanthropy reports that non cash donations are expected to rise as a form of year end giving.
Some of the recovery in the stock market means that some donors have appreciated stock—unlike two years ago when many only had losses. Appreciated stock is a better gift than cash because a donor can give the stock at a fair market value deduction price—assuming they’ve held the stock more than one year. Equally significant, when gifting appreciated stock, the donor pays no capital gains.
On the other hand, many donors face liquidity issues. They want to give but simply have less available cash. Some wise donors are looking at giving non cash items. These gifts include but are not limited to things like cars, trucks, boats, commercial real estate, raw ground, farm ground, rental houses, and even residential houses.
Recently, one of the charities that receives non cash gifts—iDonate.com—reported receiving an RV. iDonate regularly receives gifts of vehicles. One donor called to inquire about donating a 1967 Chevrolet—a classic car that was in mint condition. During the month of December, iDonate is expecting to receive many offers of real estate gifts as well, including residential real estate gifts.
Certainly, giving is not just about cash donations but also for donors who want to think creatively about how to support charities of their choice.
--William F. High is the President/General Counsel for the Servant Christian Community Foundation (www.servantchristian.com). Servant’s mission is to inspire, teach and facilitate revolutionary biblical generosity. He may be reached at whigh@servantchristian.com.