Giving Before the Sale of an Appreciated Asset

Katherine and Mark bought a piece of property 25 years ago for $50,000. This year, it was worth $500,000. Having a heart for evangelism, they wanted to sell the asset and then give the proceeds to their favorite ministry, Café 1040.

Doing so, however, would have sent tens of thousands of dollars to the Federal government in taxes, instead of to the missionaries in critical need of those dollars.

Then Katherine and Mark learned about Café 1040's partnership with The Atlanta Christian Foundation (ACF), a recognized leader in accepting and liquidating innovative gifts such as real estate, business interests, and restricted securities. They decided to give their property directly to ACF.

After liquidating the property, ACF put the proceeds into Café 1040's ACF Fund which Café 1040 used for its work among the Unreached Peoples of the World. Why was this a wise choice?

  • * No capital gains tax. They avoided capital gains tax, saving $94,500. These dollars went to support the ministry work of Café 1040.
  • * Higher charitable income tax deduction. Katherine and Mark received a tax deduction of $500,000, the fair market value of their property. This saved them an additional $38,745 in income taxes.
  • * Maximized gift. They were able to give $500,000 to charity instead of $405,500.

With the extra $94,500, Café 1040 mobilized many missionaries to effectively spread the Gospel among the Unreached. With the extra $38,745, Katherine and Mark helped put their daughter through college.