Using assets under management for Bible translation

By Steve Davis, Director of Gift Planning, Wycliffe Foundation Is your stock still appreciating? What about that rental property that you own and manage for God? These are just two of the many assets under management that are worth more today than when they were purchased. And with the recent upturn in the market, these […]

By Steve Davis, Director of Gift Planning, Wycliffe Foundation

Is your stock still appreciating? What about that rental property that you own and manage for God? These are just two of the many assets under management that are worth more today than when they were purchased. And with the recent upturn in the market, these assets are probably worth more than you might think.

However, most people think that they have to hang on to these assets based on the belief that selling them they would incur cost-prohibitive capital gains taxes. As a result, God’s stewards do not consider these resources as sources for giving.

But there is an opportunity to increase your current impact on the work of Bible translation while blessing your children and grandchildren. By using an asset such as marketable securities, you can actually contribute more than you would by using cash. The concept is to use an asset that is worth more today than it was when you acquired it to establish a donor-advised fund (DAF).

What is a donor-advised fund? A donor-advised fund is a charitable giving vehicle administered by Wycliffe Foundation and created for the purpose of managing Kingdom-impact donations on behalf of you and your family.

Here’s how a DAF works:

You or your private foundation make an irrevocable, taxdeductible
contribution to Wycliffe Foundation
Wycliffe Foundation liquidates the assets and invests the proceeds
You advise the Foundation on what qualified organizations will
receive grants
The Foundation completes due diligence and disperses the funds
You can name a successor representative to make grants after
your death
You maximize God’s assets and simplify your giving

Many assets can fund this powerful giving tool, including underused assets such as marketable securities, certificates of deposit, cash, real estate and business interests that have appreciated in value.

Partners who initiate a DAF enjoy tax-advantaged giving by receiving an immediate tax deduction and eliminating capital gains taxes on the assets contributed to the fund. DAFs essentially act like a family foundation without the annual tax reporting and paperwork while maximizing giving opportunities to Bible translation and the Wycliffe family of organizations.

So what assets do you have under management that God could use to fund such a giving vehicle? To learn more, visit http://wycliffefoundation.org/daf.

At a glance: Donor-advised funds

Fund assets are invested so that growth and/or annual net income may be available for distribution
Make grant recommendations at any time, including anonymous gifts
Name a successor adviser to continue making recommendations for up to 20 years beyond the lifetime of the initial trust holder
Maximize tax savings
Benefit from the experience and expertise of the Wycliffe Foundation team

Giving Through a DAF: A family affair

Many families use DAFs as their family giving fund. Children and grandchildren are assigned a certain dollar amount to “manage” from the fund. After conducting their own research, the family gathers together and recommends where those dollars can make the most impact. By involving additional family members, supporters can pass along charitable and spiritual values to loved ones who are also actively involved in the giving process.