PROFESSIONAL

PROFESSIONAL ADVISORS
ADVISORS

2024 Strategic
2024 strategic
giving
giving guide
guide
Solutions and
Solutions and strategies
strategies to
to help
help your
your clients
clients
send more
send more to
to the
the causes
causes they
they care
love about
Open up new
horizons for heart-
level conversations
with strategic
creative giving
giving
solutions from NCF
Your clients depend on you for
wise strategies for their financial
planning. But what about their
strategy for giving? Helping them
grow on their journey of generosity
is a great opportunity to deepen
your relationships, grow your
practice, and steward the influence
God has given
influence God has
you.given you.

Let’s get started

Contents

Open a donor-advised fund 4

5

The power of non-cash giving 6

5

Giving publicly traded stocks 6

7

Using real estate to fund charity 8

7

Using business to fund charity 9

8

Including charitable giving in a 10

9
business-exit strategy

Charitable estate planning 10

11

Using ainvestment
NCF's private foundation
options with 11
12
a donor-advised fund

Charitable gift annuities (CGAs) 12

NCF's investment options 13

Charitable gift annuities (CGAs) 14

Help your clients open a donor-advised fund
If your clients are tired of the paperwork, tracking donation receipts, and
administration that often surround their generosity, a Giving Fund (donor-advised
fund)at
fund atNCF)
NCF can help. They can open a fund in minutes, make tax-deductible
donations, and then go online from any device to browse charities and make
an impact for their favorite causes. It's a simple and flexible solution, great for
personal, family, or business use.

Give
Give cash
cash
and
and stocks
stocks

Recommend
Giver recommends
grants
Qualify for anqualify
Potentially income grants
to charities
to charities
tax deduction NCF
Giving Fund
for an income
tax deduction

BENEFITS

• Simple – Reduce paperwork, receipts, and administration

• Convenient – Manage all giving online from any device
• Christian – Enjoy engaging with a team with shared values
• Automated – Set up recurring gift and grant schedules
• Collaborative – Enjoy giving with family and friends

Open a Giving Fund today

Learn more or get started at
ncfgiving.com/givingfund

4Tax-Smart Giving Strategies • 4

The power of non-cash giving
Your clients may dream of giving significantly more to the charities they care
love, about,
but if but
they’re
that canlike
seem
most
outpeople,
of reach.
thatThe
often
majority
seemsofout
their
of reach.
giving is
Thelikely
majority
done with
of their
cash,
giving
while
is
likely done
most of their
with
wealth
cash,iswhile
tied up
most
in other
of their
assets,
wealth
like
is business
tied up ininterests,
other assets,
real like
estate,
business
and
interests, real
securities. Instead
estate,
of writing
and securities.
checks toInstead
charityoffrom
writing
post-tax
checksdollars,
to charity
theyfrom
can multiply
post-tax
dollars,
their impact
they by
cangiving
multiply
appreciated
their impact
non-cash
by giving
assets.
appreciated non-cash assets.

Give
Give stocks,
stocks, real
real
estate,
estate, business
business
interests,
interests, and
and more
more

GIVER Recommend
Giver recommends
grants
Qualify
Potentially
for anqualify
income grants
to charities
to charities
tax
for deduction
an income NCF
NCF**
tax deduction

A NEW PERSPECTIVE BENEFITS

The first chart shows how most people's • Expanded giving

giving capacity
capacity––Accelerate
Accelerateyour
your
wealth is in non-cash assets, while only a clients' generosity
generosity by
by giving
givingfrom
fromwealth
wealth
fraction is in cash. But the second chart shows tied up in their
their business
business or
orother
othernon-cash
non-cash
how most gifts are from cash, with only 5%
25% assets, rather
rather than
than cash
cash flow.
flow.
from non-cash. What type of impact could
• Tax
Tax efficiency
efficiency –
– Your
Enjoyclients enjoy a significant
a potentially
your clients have if they gave more from non-
potentiallyin
reduction significant reduction
capital gains taxes,in capital
and receive
cash assets?
gains taxes, and receive a greater potential
a greater potential income tax deduction.
Non-cash Cash income tax deduction.
Non-cash Cash
• More to charity – Experience the joy of
• More to charity
increased – Helpgiving
charitable your clients
and moreexperience
impact
93%
5% the joy of increased charitable
for the causes they love most. giving and
90% 25%
more impact for the causes they love most.
Assets Assets • Trusted experience – Work with NCF's in-
owned given
• Trusted experience – NCF’s in-house
house team of charitable giving team who
charitable giving team can help your clients
can work with you and them before they
10% 95% before they decide to sell to get the most
7% 75% decide to sell appreciated assets.
giving out of their appreciated assets.

Source at ncfgiving.com/noncash * Non-cash gifts may be made to one or more of NCF's

related entities.

Tax-Smart Giving Strategies • 5

Giving publicly traded stocks
In most cases, if your clients have appreciated stocks or mutual funds in a taxable
investment account, they have significant opportunity to use those shares to create more
charitable impact in a tax-efficient way. Instead
The key of
is selling
to helpthe
them
stocks
donate
andthese
giving
appreciated
from the
securities before
proceeds, it is wiser
theytosell
donate
them.
these appreciated securities and give from the proceeds
made available in their Giving Fund.

Give
Give appreciated
appreciated stocks
stocks
or
or mutual
mutual funds
funds

Potentially
Qualify forqualify
an income
for an Giver can
Giverecommend
more
$ income
tax deduction
tax deduction Giving Fund
Giving Fund more grants to charities
to charities

TRADITIONAL GIVING USING CHECKS MORE GIVING USING STOCKS

1. Start
Startwith
with$10,000
$10,000inincash
cash 1. Donate $10,000 of stock to NCF

2.
2. Write
Writechecks
checkstotocharities
charitiesfor
for$10,000
$10,000 2. Potentially qualify for a fair market value
charitable deduction of $10,000
3.
3. Qualify
Potentially
for a qualify
$10,000 forcharitable
a $10,000deduction
charitable
deduction 3. Shares are sold by NCF with no capital
4. Continue to pay capital gains tax in their
gains tax implications, with proceeds
4. portfolio
Continue (now
to pay
or later)
capital gains tax in their
placed into a Giving Fund
portfolio (now or later)
4. Opportunity
Use potentialto
tax
replenish
efficiency
portfolio
to give with
more
retained cash

5. Use potential tax efficiency to give more

7Tax-Smart Giving Strategies • 6

6
Using real estate to fund charity
If your clients own rental property, land, or commercial buildings, and they’re wishing
thinking
of selling,
they coulddonating
give more
them
to charity,
may bedonating
a great alternative.
one of theseIn assets
most cases,
may be
your
a great
clients
solution.
willmost
In receive
cases,
an income
your clients
tax deduction
will receive
foranthe
income
fair market
tax deduction
value of the
for the
gift,fair
freeing
market
up
additional
value of the
cash
gift,for
freeing
giving.
up additional cash for giving.

Give portion
of real estate

Giver recommends
GIVER grants to charities
GIVER Potentially
Qualify for anqualify
income NCF *
NCF*
for an income
tax deduction
tax deduction
Gifted
Gifted portion
portion receives
receives future
$ income or sale
future
proceeds
income or sale proceeds

BENEFITS RESULTS

• Maximize giving by preserving the value of This table shows the impact of giving a
the gifted asset for charitable impact $1,000,000 piece of land with a $100,000 cost
basis and no debt.
• Use annual charitable deductions for
non-cash asset gifts (up to 30% of AGI), Family Taxes Charity
potentially increasing giving
cash flow
andand
cash
giving
flow Sell then
give cash $311,000 ($52,000) $741,000
• Mobilize NCF's portion of future income for Give property
$420,000 ($420,000) $1,000,000
granting to charities (NCF may have 60% before a sale
tax efficiency on pass-through, taxable net Difference $109,000 $368,000 $259,000
income during ownership)
As a result of giving assets vs. giving cash,
• Potentially avoid or reduce capital gains $259,000 more would go to charity and
taxes on the gifted portions'
portion offuture
futuresale
sale
$368,000 less would be payable in taxes.
proceeds, moving more dollars to charity
Assumed tax rates:
Capital gain – 20% federal, 5% state, 3.8% NIIT
Ordinary income – 37% federal, 5% state

* Non-cash gifts may be made to one or more of NCF's related entities.

Tax-Smart Giving Strategies • 7

Using business to fund charity
There can
are significant
be significant
benefits
benefits
when
when
youryour
clients
clients
donate
donate
a portion
a portion
of their
of their
business
business
or
business
or business
interests
interests
to charity.
to charity.
They
They
typically
typically
receive
receive
a fair
a fair
market
market
taxtax
deduction,
deduction,
and
potential
and potential
taxestaxes
on NCF's
on NCF's
portion
portion
of the
of company's
the company's
future
future
income
income
maymay
be reduced,
be reduced,
resulting in more money for charity. When the business is subsequently sold, NCF will
likely pay less in potential taxes, putting more in your clients' Giving Funds for granting.

Giveportion
Give portionof
of Recommend grants
businessto
business toNCF
NCF to charities

Giver recommends
grants to charities
Qualify for anqualify
Potentially income NCF
NCF**
tax
for deduction
an income
tax deduction
Gifted
Gifted portion
portion receives
receives future
$ profits or sale
future
proceeds
profits or sale proceeds

BENEFITS RESULTS

• Maximize any potential liquidity event by This table shows the impact of giving a 20%
preserving the value of the gifted asset for interest in a $5M C-corp (with a $100,000
charitable impact basis) prior to a potential sale.

• Use
Utilize
thethe
annual
annual
charitable
charitable
deduction
deduction Family Taxes Charity
Sell then
for non-cash asset gifts (up to 30% of give cash $3,172,000 $1,110,000 $718,000
AGI), potentially increasing cash flow for
Give stock
more giving then sell
$3,228,000
$3,291,000 $709,000
$772,000 $1,000,000

• Mobilize NCF's portion of future income for Difference $119,000

$56,000 ($338,000)
($401,000) $282,000
granting to charities (NCF may have up to
60% tax efficiency on pass-through, taxable As a result of giving assets vs. cash, $282,000 more
net income during ownership) would potentially go to charity while increasing net
cash flow by $56,000
$119,000for
formore
moregiving.
giving.
• Avoid
Potentially
or reduce
avoidpotential
or reducecapital
capitalgains
gains taxes
Assumed tax rates:
on
taxes
theongifted
the gifted
portion,
portion,
movingmoving
more dollars
more
Capital gain – 20% federal, 5% state, 3.8% NIIT
to
dollars
charity
to charity Ordinary income – 37% federal, 5% state

8Tax-Smart Giving Strategies • 8

Including charitable giving in a business-
exit strategy
As part of your clients' business
long-termplanning,
businessconsider
planning,helping
consider
them
helping
gift athem
portion
giftof
a portion
their
of their business
business or business
or business
interestsinterests
to NCF within
to NCFthe
within
context
the context
of their giving
of theirstrategy.
giving strategy.
Then if,
Then
at a later
if, atdate,
a later
employees,
date, employees,
children,children,
or a third
orparty
a third
offer
party
to purchase
decide to the
offergifted
to purchase
interest
thefair
at gifted
market
interest
value,
forthey
fair could
marketuse
value.
the net
Theproceeds
proceedsinare
their
then
Giving
available
Fundintoyour
recommend
clients'
Giving Funds
grants to theirfor
favorite
them tocharities.
recommend grants to their favorite charities and causes.

Recommend
Giver recommends
grants
Give business
Give business interest
interest and
and
grants
to charities
to charities
potentially qualify
potentially qualify for
for an
an
NCF
NCF*
income tax
income tax deduction
deduction

Employees,
Employees, children,
children, oror a third
a third party
party
may offer to purchase the
may offer to purchase the giftedgifted
interest
interest from
from NCF
NCF atat a later
a later date
date

BENEFITS OF GIVING BUSINESS INTERESTS

• Potentially qualify for a charitable deduction • Potentially eliminate or reduce capital gains
with the gifted business interest taxes on the gifted portion, moving more
dollars to charity
• Maximize any potential liquidity event by
preserving the value of the gifted asset for • Use charitable deductions reserved for non-
charitable impact cash assets (up to 30% of AGI usable against
income for six years total, including the year of
• If, at a later date, employees, children, or a the gift)
third party decide to offer to purchase the
gifted interest for fair market value, the
and the • Potentially reduce current-year income taxes
proceeds are
would
available
then beinavailable
your clients'
in a Giving through a larger charitable deduction,
Fund for
at NCF
themtoto
send
recommend
to charities
grants to their increasing personal cash flow for more giving
favorite charities and causes.

9
Charitable estate planning
Upon death, there are typically three places assets can go: family/friends, charity,
or taxes. For families with exposure to the federal estate tax, thoughtful planning
may significantly reduce or potentially eliminate the estate tax liability and enable
them to expand their charitable impact.

Family and
Your friends
client's
estate
Charities

Taxes

MAXIMIZING GIVING AND REDUCING ESTATE TAXES

1. Estimate the income your clients need to be supported in their retirement: How much do
they need to support their lifestyle for the remainder of their lifetime? What is their financial
finish line?

2. Determine and quantify an appropriate inheritance for children and grandchildren: What
amount of inheritance is more likely to be a blessing than a burden?

3. Secure
Use appropriate
the targetgift
inheritance
and estate-planning
with appropriate
strategies
gift and
andestate-planning
techniques: What
strategies
approaches
and can you
consider
techniques to (which
help your
areclient
oftensecure
sufficient
an appropriate
to secure aninheritance
appropriateand
inheritance
potentially
andreduce
reduce
estate
estate
tax): What
tax? Griffin,
expertise
what arecan
theyou
basic
bring
questions
in to help
that
approach
can go here?
the unique needs of your client?

4. Gift or bequest “excess wealth” to charity and potentially

eliminate oreliminate
reduce taxes:
or reduce
Whattaxes:
amountAfter
is in
excess
definingofyour
whatclient’s
is being
inheritance
passed onplans,
to heirs?
are there additional assets that your client has that
can fulfill a need of a charity they are passionate about?
Why wait? Help your clients begin to shape their charitable legacy now and potentially minimize
Why
annual
wait?
income
Helptaxes
your clients
by making
begin
lifetime
to shape
charitable
their charitable
gifts. legacy now and potentially minimize
annual income taxes by making lifetime charitable gifts.

10
Tax-Smart Giving Strategies • 10
Investment options at NCF
With a Giving Fund at NCF, your clients have the opportunity to select from a variety of
of options
options to to
invest
invest
charitable
their charitable
dollars with
dollars
a potential
with a potential
for growth.
for growth.
OptionsOptions
include include
NCF’s
NCF’s Faith-Driven
Faith-Driven Pools, Pools,
Traditional
Traditional
Pools, Pools,
and separately
and separately
managedmanaged
accounts
accounts
(SMAs).
(SMAs).

Give cash, stocks,

or other assets

Recommend
Giver recommends
grants
Give cash
Potentially qualify grants
to charities
to charities
for an income NCF *
NCF*
tax deduction

Optional
Optional SMA
SMA or
or
impact
impact investment(s)
investment(s)

THREE INVESTMENT OPTIONS

• NCF's investment pools – Your clients can choose from NCF's Faith-Driven or Traditional
Pools that range from stable value with low risk of fluctuation in principal value to higher risk
with substantial exposure to market fluctuations. Each pool is overseen by an SEC-registered
fund manager vetted and approved by our investment committee.
•• Impact
Impact investing
investing –
– With
With impact
impact investing
investing at
at NCF,
NCF, your
your clients
clients can
can grow
grow charitable
charitable dollars
dollars
while
while making
making a a spiritual
spiritual impact,
impact, even
even before
before they
they recommend
recommend grants
grants to
to charities.
charities.
• SMAs – If your clients prefer a more-customized approach to the management of the
• SMAs – If your
charitable clients
dollars prefer
in their fund,a more-customized
they might considerapproach
an SMA,towhich
the management
is best suitedoffor
thegivers
charitable dollars in their fund,
givingthey mightand
consider a separately managed account (SMA),
with long-term charitable horizons a desire for an advisor to manage their fund's
which is best suited for givers with long-term charitable giving horizons and a desire for an
investments.
advisor to manage their fund's investments.

* Non-cash gifts may be made to one or more of NCF's related entities.

11 Tax-Smart Giving Strategies • 11

Charitable gift annuities (CGAs)
A charitable gift annuity (CGA) is ideal for your
thoseclients
who have
whoahave
heart
a to
heart
givetobut
give
desire
but
a source
desire a source
of ongoing
of ongoing
income.
income.
CGAs provide
CGAs provide
fixed payments
fixed payments
for life for
at rates
life atgenerally
rates
higher than
generally higher
certificates
than certificates
of depositof
(CDs),
deposit
and(CDs),
a portion
and of
a portion
your clients'
of your
payments
clients' are
often tax-free.
payments are often
They tax-free.
make theThey
gift (part
makeofthe
which
gift (part
is tax-deductible),
of which is tax-deductible),
and then receive
and
fixed receive
then annuityfixed
payments
annuity
each
payments
year foreach
the remainder
year for the
ofremainder
their life. of their life.

Give cash, stocks,

or other assets

Remainder
GIVER Gift to charity
Potentially
Qualify qualify
for an fortax
income an Gift annuity
annuity
income tax deduction,
deduction, and receiveand at
at NCF
NCF**
receive
fixedfixed payments
payments

BENEFITS FREQUENTLY ASKED QUESTIONS

• Tax efficiency – Your clients may qualify for How much money is required to set up a CGA
an immediate income tax deduction with NCF?
NCF offers CGAs beginning as low as $10,000.
• Multiple funding options – Your clients make
a gift(s) to NCF to fund their CGA. They can At what age can a CGA be established?
give cash (checks), publicly traded securities, Immediate payment
Immediate payment CGAs
CGAs are
are offered
offered to
to those
those
other assets, or, if they’re 70½ or older, they at least 50 years of age. Deferred payment
at least 50 years of age. Deferred payment
can make a qualified charitable distribution CGAs may
CGAs may be
be established
established under
under age
age 50,
50, with
with
(QCD) from an IRA payments
payments beginning at age 50. A CGA may be
beginning at age 50. A CGA may be
funded
funded with
with a
a QCD
QCD once
once the
the giver
giver is
is 70½.
70½.
• Support for charities – Charities may receive
grants immediately How
How much
much will
will your
your clients
clients receive?
receive?
NCF uses the payout rates recommended by
• Regular payments – A CGA provides fixed NCF uses the payout rates recommended by
the American Council on Gift Annuities. The
payments for life with rates generally higher the American Council on Gift Annuities. The
greater the age(s) when the CGA is established
than CDs greater the age(s) when the CGA is established
and the longer payments are deferred, the
and the longer payments are deferred, the
• Christian higher your clients' payout rate.
Christian – Enjoy–engaging
values with an
Enjoy service NCF
from team
a like- higher your clients' payout rate.
that shares
minded NCFyour
teamvalues
* Non-cash gifts may be made to one
•• Flexibility
Flexibility –
– Use
Use a
a single
single CGA
CGA to
to benefit
benefit
or more of NCF's related entities.

multiple
multiple charities
charities

12
Tax-Smart Giving Strategies • 12 12
Notes
Notes

13 Tax-Smart Giving Strategies • 13

Do your clients need
a Giving Strategy ? ™

Giving is much more powerful with an intentional strategy. A Giving

StrategyTM
Strategy based
based
on biblical
on biblical
principles
principles
cancan
helphelp
youryour
clients
clients
givegive
withwith
more
more kingdom
kingdom impact,
impact,
leave aleave
meaningful
a meaningful
legacy,
legacy,
cultivate
cultivate
familyfamily
unity, unity,
and
and maximize
maximize whatwhat
theythey
havehave
to give.
to give.

Explore how a Giving Strategy can help

your clients in exciting new ways at
ncfgiving.com/givingstrategy
ncfgiving.com/givingstrategy
Join our Inside Giving
webinar series for advisors
Each quarter, NCF's charitable giving team hosts a special
webinar for professional advisors called Inside Giving.

In each one-hour webinar, you will have the opportunity

to grow in your knowledge of non-cash giving, strengthen client
relationships, and earn CFP® and CKA® credit. Certificates of
completion are available upon request.

DRAF T CONTENT GOES HERE

See upcoming webinars or register at

ncfgiving.com/insidegiving

© 2024 National Christian Charitable Foundation, Inc.

*Non-cash gifts may be made to one or more of NCF's related entities.
Growing
Growinggenerosity
generosity
nationwide
nationwide
Seattle

Every day, from coast to Portland

NCF local
coast, NCF’s teams
local serve
teams help Minneapolis Grand
Rapids
Milwaukee
New York City

givers, advisors, charities, and Chicago

Detroit
Lancaster

Columbus
San Francisco

with innovative giving

Rocky Mountains Indianapolis

churches discover innovative Heartland

Lexington
Louisville
Raleigh

solutions
giving from an
solutions toexperienced
unlock more Irvine Knoxville
Charlotte
Albuquerque Memphis

charitable giving
generosity team.
for God’s kingdom.
Phoenix
Atlanta
Birmingham
Dallas/
Ft. Worth

Texas Jacksonville

Houston
Austin
Hawaii
Orlando

Tampa

Connect with your NCF team today South Florida

at ncfgiving.com or 800.681.6223

$17 billion
$18 $5 billion
$6
in grants to charities since 1982 in complex gifts received

With hearts set on getting money to With an experienced, in-house

to charities
charities fast,
fast,
thethe
NCFNCF
community
community charitable giving
team, we've
team,received
we've
of givers has one of the highest more than
received more
2,900
than
complex
3,000 gifts
complex
grantmaking rates of all donor- such such
gifts as business
as business
interests
interests
and
advised fund providers. real real
and estate.
estate.

350+ 90,000+
team members across
ready tothe
serve
country charities and
charities and churches
churches supported
supported

Every
For decades,
day, ourNCF’s
local NCF
charitable
teamsgiving From
From youth
youth ministry
ministry to
to homelessness,
homelessness,
serve givers,
teams have helped
advisors,
hundreds
charities,
of human
evangelism
trafficking
to adoption,
to disaster
humanrelief …
and churches
advisors comewith
alongside
innovative
theirgiving
clients the
trafficking
causes to
NCF
disaster
giversrelief
support
... the
are as
solutions
to explorefrom
tax-efficient
an experienced
strategies
team
for of varied
causesas
NCF
thegivers
passions
support
God has
are placed
as
charitable charitable
increased giving professionals.
giving. on
endless
their hearts.
as the imagination.
012324
011323

© 2023 National Christian Charitable Foundation, Inc.