1. Cash & Checks:
Cash and checks are the most common way donations are received by the church. The church is required by the I.R.S. to produce statements for all donors who give any single gift of $250 or more. If a gift is less than $250, the donor's written records and/or canceled check are sufficient proof and the I.R.S. does not require written confirmation from the church. (Multiple gifts received by the church on the same day are considered to be one gift by the I.R.S., and if those gifts total $250 or more, the church is required to send the donor a confirmation.) Because some donors wish to have confirmation of all of their gifts, the church provides contribution statements at the end of each year. Contribution statements will be sent to donors in January of every year for the previous tax year.
2. Stock & Mutual Funds
It is possible to transfer stocks and mutual funds directly to the church. If this is done with securities that have been held for more than one year, the donor will be able to deduct the full fair market value of the securities and avoid paying any capital gain tax. If, however, the securities are sold first and then the proceeds are given to the church, the donor will still have to pay capital gain taxes to the I.R.S. A little planning in this area can help you take full advantage of the tax benefits allowed by the government. Please call us for more details before you put any transfer in motion.
3. Real Estate
In general, gifts of real estate have the same tax benefits as giving appreciated securities. If the property has been held for more than one year, the donor can typically take an income tax deduction for the full fair market value and avoid capital gain tax on the appreciated portion of the property. It is also possible that other benefits can include savings in estate taxes and avoiding probate. Please contact the business office to discuss this further.
4. Personal Property
Every year the church is given books, office furniture, computers, automobiles, and more. We gratefully accept all gifts-in-kind that we can truly use, or we try to direct donors to other ministries that have specific needs. Gifts-in-kind can be a little more complicated due to I.R.S. regulations, but we will be happy to help you with the process. Please arrange all gifts-in-kind with the business office before dropping off any tangible property.
5. Life Insurance
Although it is seldom considered, life insurance policies can be given to non-profit organizations. If the original purpose for a life insurance policy no longer exists, a donor must make the church the owner and beneficiary of the policy to receive a tax deduction. The deduction can be taken immediately and the amount of the contribution is typically the replacement value or cost basis of the policy. Please call to discuss additional details.
6. Wills & Bequests
A charitable gift can be given to the church through your will or other estate plans. Such a gift can be very helpful in avoiding estate taxes and can allow the deceased to give specific directions on how their estates are to be divided. If you choose to include the church in your will or estate plan, please let your attorney know the church's name and address. Further, please communicate to your attorney that the church is a 501(c )(3) organization incorporated in the state of Washington and that our tax identification number is 91-1515354. If you have already included the church in your will, please let us know so that we can say "thank you." Don't forget that qualified retirement plans will be considered part of your estate at death, but if handled correctly they can also be deductible from the estate as charitable gifts.
Year End Deadlines
Because all gifts to the church are subject to I.R.S. deadlines, please remember the following when you give at year-end. All gifts must be received by the church before midnight on December 31, or must be postmarked before the end of December, to be deducted in the present tax year. Any gifts received after December 31 and not postmarked in December will be included in the next tax year. The date written on a check will not determine in which tax year a gift is included. Only the actual date of receipt by the church or the postmark will establish the correct tax year for the I.R.S.
Many of the ways to give mentioned above can be very effective if utilized correctly. Although the staff of the church's business office is ready to help with these gifts, they are unable to give advice on what is best for your situation. Please consult your CPA, financial planner, or tax attorney to get advice tailored to your financial situation before putting one of these gifts in motion. Unless otherwise designated, all gifts received by the church are unconditional and without personal benefit to the donor.
Each day, Northshore Christian Church and Academy makes an impact on the lives of people in this region and beyond. Have you ever considered how you might help make a difference in the lives of others – forever?
A Personal Legacy… If you've decided to shield your heirs from heavy income taxation by making a charitable donation of your retirement plan assets upon your death, simply contact your retirement plan administrator for a change of beneficiary form. Then decide what percentage you would like Northshore Christian Church to receive, and name us (and a specific endowment if you wish), along with the percentage on the beneficiary form. Note that if you are married, your surviving spouse is usually entitled by law to receive the entire amount in certain qualified plans (but not IRAs). Your spouse, however, can sign a written waiver allowing the gift to Northshore. Finally, return the form to your plan administrator, and keep a copy with your Will and other estate planning documents.
Learn more about how an Endowment works, what options you have, and how Northshore channels Endowment funding below.
What is an "Endowment"?
A financial asset donation made to a non-profit group or institution in the form of investment funds or other property that has a stated purpose at the bequest of the donor. Most endowments are designed to keep the principal amount intact while using the investment income from dividends for charitable efforts.
Endowments provide ongoing benefits for those that receive them by earning a market rate of interest while keeping the core endowment principal intact to fund future years of scholarships, or whatever efforts the donor sought to fund. In some cases, a certain percentage of the assets are allowed to be used each year, so the amount pulled out of the endowment could be a combination of interest income and principal. The ratio of principal to income would change year to year based on prevailing market rates.
When you contribute to an Endowed Fund for the benefit of Northshore Christian Church or Academy you have ensured that your intentional act of generosity and outreach will benefit our evangelistic and educational mission forever.
Earnings from your fund are used to make grants supporting Church or Academy needs and goals. Your gift—and all future earnings from your gift—is a permanent source of capital, helping do good work for His kingdom today and in the future.
How Does a Donor Benefit from Making a Planned Gift?
With any type of planned gift for the benefit of Northshore Christian Church comes the considerable fulfillment of knowing you are leaving a legacy that will benefit the Kingdom long after you are gone. In most cases, a planned gift also offers one or more of the following:
- A current income tax deduction
- Increased cash flow from an asset, sometimes at more favorable tax rates
- Preservation of an asset’s appreciation in value coupled with the elimination, reduction, or deferral of capital gains tax
- Professional management of assets relied upon for income
- Gift and estate tax savings
How An Endowment Works
As an example of how an endowment works, if a $50,000 gift was made on December 31, 2015, to establish an endowment fund, and over the next twenty-five years the fund grew by an average of 7.5% per year with 5% grants of the annual fund balance and 1% administrative fees, in 25 years the fund balance would be $88,550 and the total grants given out would be $66,681. That is the power of endowment!
Legacy and Stability - Donors who endow their gifts can make a difference during their lifetime and, at the same time, provide a gift that lasts forever. Spending will continue through either an existing fund or one that you establish so that your charitable wishes are preserved. Endowed funds give a stability that guarantees that critical areas will receive ongoing support, no matter what challenges lay ahead. Having a constant source of funding helps Northshore Christian Church and Academy respond to emergency needs as well as plan for the future.
Assumptions - The above fund information was based on hypothetical annual returns of 7.50%, administrative fees of 1.00% and an annual distribution rate of 5.00%. Formulas assume half of the distribution occurs in the beginning of the year with the other half at the end of the year. A three-year average balance is used to compute the amounts distributed from the endowed funds.
Types of Endowment Gifts:
- Outright Gift of Specific Amount - A Donor may designate that a specified dollar amount, asset or piece of property shall be given to Northshore. For example: I give____________ and No/100 U.S. Dollars ($________) outright to the Northshore Christian Church Endowment Fund established at Northshore Christian Church of Everett, Washington, EIN #91-1515354, or its successor in interest, to be contributed into its Endowment Fund and used for its general unrestricted charitable purposes.
- Residuary Bequest - A Donor may give the remainder (residue) of his or her estate or trust to Northshore after payment of all debts and expenses of the estate and after specific gifts to other designated beneficiaries have been made. For example: I give all of the rest, residue and remainder of my estate/trust outright to Northshore Christian Church Endowment Fund established at Northshore Christian Church of Everett, Washington, EIN #91-1515354, or its successor in interest, to be contributed into its Endowment Fund and used for its general unrestricted charitable purposes.
- Percentage Bequest - A Donor may designate a percentage of an estate or trust to Northshore. It is often desirable to couple this type of a gift with a fixed dollar amount. For example: I give outright an amount equal to the greater of: ten percent (10%) of my net residual probate estate; or, Ten Thousand and No/100th Dollars ($10,000.00), to Northshore Christian Church Endowment Fund established at Northshore Christian Church of Everett, Washington, EIN #91-1515354, or its successor in interest, to be contributed into its Endowment Fund and used for its general unrestricted charitable purposes.
- Contingent Bequest - A Donor may name Northshore as a contingent Beneficiary. A contingent gift would be, for example: I give my net residual estate to my son, if he survives me; provided, if my son does not survive me then I give all the rest and residue of my estate outright to Northshore Christian Endowment Fund established at Northshore Christian Church of Everett, Washington, EIN #91-1515354, or its successor in interest, to be contributed into its Endowment Fund and to be used for its general unrestricted charitable purposes.
- Restricted Bequest - A Donor may prefer to restrict his or her gift to a specific purpose or use by Northshore Christian Church. If so, inclusion of the following language after the gift language would suffice, for example: to be used and directed primarily to the Northshore Christian Church Endowment Fund for the purposes of ___________, subject to the unilateral variance power reserved in Northshore Christian Church as otherwise provided in the Endowment Fund policies of Northshore Christian Church, as amended.
What Are Other Giving Options?
In addition to cash, planned gifts can be made using various type of property:
- Appreciated securities (whether publicly-traded or privately-held) owned more than a year
- Appreciated real estate owned more than a year
- Particular items such as equipment, furnishings, and collectibles.
- Various assets such as life insurance policies, savings bonds, commercial annuity contracts and funds held in an IRA or other qualified retirement plan
They can take any of several different forms:
- An outright gift is one that is available to Northshore Christian Church immediately. Transfers of appreciated securities are particularly popular because you not only receive an income tax deduction for the full value of the securities but also avoid tax on any of the gain. Click here for example.
- A bequest is another frequently chosen type of gift, as you can retain full ownership and use of an asset for as long as you live. Likewise, a distribution from a qualified retirement plan at the end of your life means you need not give up a source of income prematurely. Click here for examples of bequests.
- A gift of life insurance may be made either by designating Northshore Christian Church as a beneficiary of the policy or by arranging for us to become the owner of the policy. The former entails many of the same advantages as a bequest, whereas the latter can result in current income tax savings.
- A retained life estate arrangement can be especially attractive if you are retired. You deed your residence (or a farm) to Northshore Christian Church while receiving a sizeable income tax deduction and retaining the right to continue living in your home. Upon your death, the property is sold and the proceeds are used by Northshore Christian Church to further its work.
- A charitable gift annuity pays a fixed, guaranteed amount for life to one or two persons, including you and your spouse, if applicable. In almost every instance, a portion of the payments will be tax-free, plus you receive a tax deduction for part of the value of your contribution.
- A charitable remainder trust pays income to you and/or other beneficiaries either for the life of the beneficiaries or a term of years. The amount of income can be fixed or variable, depending on the type of trust. It is common for such trusts to be funded with property which has increased in value, due to the fact that neither you nor the trust pays any capital gains tax at the time of funding. A deduction is also available for a portion of the value of what you contribute to the trust.
- A bargain sale can be appropriate if you would like to donate an asset to Northshore Christian Church but cannot afford to do so on an outright basis. You receive an income tax deduction for the difference between the full value and the price paid by Northshore Christian Church.
- A charitable lead trust can be a tremendous way to provide a stream of income for Northshore Christian Church during a period of time prior to having the trust’s assets pass to your heirs at a substantially reduced gift and estate cost.
- Retirement plan assets can be an easy way to transfer part of your estate to Northshore. A simple beneficiary change can be made to accomplish this. There are some important considerations when choosing this type of planned gift.
NCC Designated Endowment Funds
The Board of Elders has identified the following earmarked endowment funds to assist donors in targeting their contributions.
- NCC General Operating Endowment Fund: This fund exists to provide resources to support the unrestricted general operating purposes of Northshore Christian Church as determined by the Board of Elders.
- NCC Capital Project Endowment Fund: This fund exists to provide resources to support the acquisition of capital assets and the construction and maintenance of the facilities of Northshore Christian Church as determined by the Board of Elders.
Donor Directed or Earmarked Gifts - Donors may desire to establish earmarked endowed funds in support of designated Northshore ministries beyond those initially targeted by the Elders. In all cases, the Northshore Endowment Committee will attempt to match each Donor’s gift with his or her highest Northshore priorities, interests and ministries.
In general, a Donor’s endowed fund must be in an amount that exceeds the minimum threshold of $25,000 to be maintained as a separate account within the Endowment Fund. Specifically, subject to approval by the Board of Elders, a donor who makes a minimum Endowment Fund contribution [or pledge payable over not more than two (2) years] of at least Twenty Five Thousand and No/100 Dollars ($25,000.00) may identify a new earmarked fund provided that an already existing fund doesn’t already serve the same purpose.
If you are making an Endowment to NCC and do not designate a category, your endowment will be placed in the NCC General Operating Endowment Fund for the area of greatest need.
Professional Investment Management - Northshore has elected to utilize the Community Foundation of Snohomish County (CF-SC) www.cf-sc.org to provide investment management and administration of some elements of Northshore’s Endowment Funds. You can rest assured that your gifts will be managed by professionals who will help ensure that your charitable giving goals are met.
There are a number of types of giving that will make a lasting impact on the ministries of Northshore while also benefiting you and your heirs. View our information on Types of Endowment Gifts and NCC Designated Endowment Funds for more information. We also recommend that you consult with your own financial advisor. For additional information, you can contact Northshore’s Director of Finance for a confidential discussion as noted below.
Dan Richards, NCC Director of Finance
Address: Northshore Christian Church, 5700 23rd Drive West, Everett, WA 98203
Immediate Cash Gifts
Donors may make outright gifts of cash or check into the Endowment fund. The minimum gift accepted for an NCC Endowment fund is $1,000, except that smaller gifts may be accepted during specially designated fundraising events. Checks should be mailed to Northshore Christian Church, Attn: Finance Department, 5700 23rd Drive West, Everett, WA 98203. Checks should be made payable to Northshore Christian Church of Everett, Washington, EIN #91-1515354, and specify one of the following accounts:
- NCC General Operating Endowment Fund
- NCC Capital Project Endowment Fund
Thank you for considering leaving a Legacy with Northshore! We would be happy to talk with you any time if you have questions! Call 425.322.2329 or email