For families like yours, the desire to live generously is rarely the hurdle. You already know why you want to give. Your faith, your family values, and your commitment to your community have already settled that question.
However, when managing a complex financial life, the how of your giving is just as critical as the why.
Some giving is transactional. While the intention is beautiful, the execution often leaves significant resources on the table. When you partner with an advisory team that understands both complex wealth and advanced generosity, you can shift your giving from a simple transaction to a highly efficient strategy.
One of the most powerful ways to multiply your kingdom’s impact is by shifting your strategy from giving cash to giving appreciated assets.
The Hidden Cost of Giving Cash
To understand the value of giving appreciated assets, we first have to look at the hidden costs of giving cash.
Imagine you want to make a $100,000 gift to a ministry or a family foundation. If you decide to fund that gift by selling highly appreciated stock from your portfolio, you trigger a taxable event. You will owe capital gains taxes on the growth of that stock. Depending on your tax bracket and state residence, that tax bill can consume up to 20 percent (or more) of the asset’s value.
You are forced to pay the IRS first, and the charity receives whatever is left over.
The Solution: Direct Transfer of Appreciated Assets
Faith-informed financial planning looks for opportunities to maximize the resources God has entrusted to you. Instead of selling the stock and giving the cash, a far more effective strategy is to transfer the highly appreciated stock directly to a charity or a Donor-Advised Fund (DAF).
When you transfer the asset directly, the outcomes change dramatically:
- Capital Gains Are Eliminated: Because the charity or DAF is a tax-exempt entity, they can receive the stock and sell it without paying any capital gains taxes.
- Your Deduction is Maximized: You receive an income tax deduction based on the full, fair market value of the stock on the day it is transferred, not the original price you paid for it.
- The Ministry Receives More: One hundred percent of the asset’s value goes directly toward the causes you care about, rather than being diminished by taxes.
This strategy applies to publicly traded stocks, but it can also be utilized for more complex assets like privately held business interests, real estate, or mutual funds.
Bridging the Gap Between Wealth and Generosity
Executing these advanced generosity strategies requires a specialized approach. This is where Fuller FaithWise Advisors is uniquely positioned to serve your family.
We do not view your wealth management and your charitable giving as two separate silos. We integrate them. Because we manage both your investment portfolio and your giving vehicles, we can proactively identify the most highly appreciated assets in your accounts and seamlessly transfer them to your FaithWise Charitable DAF.
We handle the technical complexities, the tax reporting, and the asset liquidation so you can focus entirely on the joy of grantmaking.
Ready to Optimize Your Impact?
Faithful stewardship is not just about having good intentions. It is about applying wisdom, foresight, and professional excellence to the resources you manage.
If you are currently giving out of your cash flow and want to explore how a tailored, faith-informed strategy can multiply your impact and reduce your tax burden, we are here to help.
Contact FaithWise Advisors
Call us at (626) 765-8450 or visit our Contact Page to schedule a private consultation. Let’s build a strategy that reflects both your financial acumen and your highest values.
Risk Disclosure: Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.