Giving Opportunities

Covenant Church provides numerous opportunities for "giving back" to God a portion of what God has given to us. The most traditional method is making an annual pledge to the operations budget which usually comes from one's annual income. This may be done using the form available on this website or by contacting the church office.

Accumulated Assets
Faithful stewardship also includes responsible use of the assets we have accumulated over the years. Depending on your particular financial situation, there may also be significant tax advantages to making your gift from other financial resources.

Appreciated Stock - Gifts of appreciated stock or mutual funds often provide exceptional tax savings and enable the donor to reduce the cost of the gift or to significalntly increase the amount which may be given. If you have owned the securities for longer than one year, you may claim a charitable income tax deduction in an amount up to 30 percent of your adjusted gross income fro the full current market value rather than for the purchase price of the securities. You are also relieved of paying tax on the capital gain.

Lump Sum Cash Gifts - As savings bonds, certificates of deposit or treasury bills mature, large lump sum cash gifts become possible.

Bonds - Ownership of state, municipal and U.S. Government Bonds [other than U.S. Savings Bonds] can be given to your church. For tax purposes the bonds will be valued at the date of the gift, and the charitable deduction may include capital gain or ordinary income elements.

Personal Property - Gifts of personal property include valuable jewelry, works of art, antiques, coin and stamp collections. These gifts provide a tax deduction. Special tax provisions apply.

Real Estate - A gift of land, a house or vacation home may be possible. You will receive a tax deduction for the fair market value and be relieved of taxes.

Planned Gifts
Planned gifts are those gifts to the church which result from a distribution of assets following your death. When a faithful member dies, the loss of their annual pledge can leave a significant gap in the church's annual income.

At Covenant, our church's endowment fund helps to make up the difference between what is pledged by our current membership and what has been bequeathed to us by former generations of members upon their death. By the proper plans for gifting the church, you may also begin to see an immediate relief to your tax burden in the present.

Bequests - One of the easiest and most common ways to support your church is to make a gift through a bequest in your will. This may take the form of a specific dollar amount, specific property, a percentage of your estate, or a remainder after you have provided for your survivors.

Bequests to your church are not subject to Federal Estate Taxes so whatever form your gift takes, your estate may realize a tax savings. Depending upon your state laws, your heirs may also save no local inheritance or estate taxes. Through careful planning, it may be possible to use money that would otherwise go to taxes to benefit both your loved ones and your church.

Other Possibilities
There are a number of other ways to provide for Covenant's financial needs through gifts from accumulated resources, including gifts of life insurance, gifts of or from retirement accounts, and life income gifts in which you may receive income for life and ultimately give the asset to your church.

In another example, when a person's income or property tax liability is too much of a strain on their meager finances, a reverse mortage may be advised. This is a gift of a home which is paid for, to their church or other not-for-profit which allows the person to continue to live in it while paying a monthly dividend back to the giver for the remainder of their life. The church assumes the cost of up-keep and taxes. At the death of the giver, the property is released for sale with the income coming to the church.

Creative Combinations
Depending on your particular situation you may use several of these ideas in combination to make your gift and to make a difference.

Members of our church's Investment Committee, Trustees or staff as well as resource persons from Presbyterian Church (U.S.A.) Foundation can assist you in reviewing your options. Simply phone the church at 346-6400 or the Foundation at 800-858-6127.

Of course, you should also consult your attorney and financial advisors to determine the applicabilitiy of tax laws to your specific situation.