Questions and Answers concerning Non-cash
Campaign Commitments and Donations
Thank you for considering a commitment of non-cash items to the Capital Campaign. Below is a list of questions and answers aimed at helping you understand the process of contributing in this way. Donors are encouraged to consult their own advisers concerning tax implications
regarding procedure and timing of donations.
1. How does it work to donate items such as shares of stock, land, or other real estate?
These kinds of assets may be simply liquidated by you, with proceeds donated to the campaign. A better way may be to donate them directly to the church (school or camp). The campaign will appoint an agent to handle the transaction and work with you or your agent to complete paperwork. This method usually releases the donor
from capital gains taxes and transfers them to the campaign, which is tax exempt. Once donations are liquidated, a receipt of the net proceeds may be issued to the donor for tax purposes.
2. How may I donate other non-cash items such as jewelry, antiques, collectibles, coins, etc.?
What will the church do with them? Again, items may be liquidated first by the donor, with proceeds then given to the campaign. When donors are not certain how to liquidate items, or are uncomfortable doing so, the items may be given directly to the campaign. It is recommended that donors tag the items to enable the church to issue a receipt following liquidation. Under these circumstances, donors must understand that results of sales and perceived value at the time of donation may differ. The campaign may choose from a variety of methods for liquidation, including auctions, dealers, online sales, and silent auctions. Depending on the number of items donated, the campaign may conduct its own public auction or sale.
PLEASE NOTE: The intention of the campaign is to generate cash by quickly and efficiently liquidating donated items. While diligent efforts will be made to secure the best value for all donated items, actual proceeds may be less than the perceived value at the time of donation. If a donor has a specific expectation of what an item should be sold for, it may be better for the donor to handle the liquidation themselves.
3. I have some items of antique furniture to donate but I cannot physically move the items. What should I do?
Let the campaign committee know of your donation. Most campaigns will make arrangements to have some capable members assist you in moving items or picking them up to be liquidated.
4. I have some items to donate but I am not sure how to indicate these items as part of my commitment. What should I do?
List the items on your commitment card. If you have numerous items, include a separate list. Indicate when you intend to donate or liquidate items yourself. This way, the finance committee will know about when to expect these proceeds. If you are donating the items directly, try to estimate their value. Many items can be found listed on sites such as eBay with an attached asking price. This research does not take very long and can be quite helpful to campaign or finance committee in determining anticipated proceeds for the project.
5. I wish to donate use of my timeshare. How do I do this?
Supply as complete information as possible about the timeshare unit - location, amenities, date it is to be used, value, etc. The campaign will decide how best to offer the unit - silent auction, online, etc. Once the unit's use is sold, you can assist in completing the associated paper work to notify both user and the timeshare office of the transaction and the expected users for that year.