Giving Intangible Personal Property

Including Copyrights, Patents and Royalties

World In Need’s partner in establishing the Harvest Foundation, Orlando Christian Community Foundation, is a recognized leader in receiving, managing and liquidating complex gifts, including intangible personal property. They handle the administrative burden by working to sell the asset for you and then, after any charges incurred in selling your asset, they place approximately 92 - 98 % of the proceeds into World In Need’s Harvest Foundation.

From the Harvest Foundation, you may recommend grants to your favorite causes within the ministry of WIN. Full or partial interests may be given, and you can give during your lifetime or possibly upon death via split-interest planned giving vehicles such as charitable remainder trusts. Such gifts usually provide you with a greater tax deduction than if you sell the asset yourself and then donate the proceeds to charity.

Here's how it works (using a patent as an example)
Brad and Gina hold a patent, which they donate to World In Need’s Harvest Foundation. The patent is currently worth $500,000. They take an immediate tax deduction and pay no capital gains tax on the asset transfer.

SCCF sells the patent for Brad and Gina, placing the net proceeds into the Harvest Foundation.

Brad and Gina may recommend grants from the Harvest Foundation to their favorite areas of ministry within WIN.

Types of intangible assets that may be given:

• personal service contracts

• installment obligations

• trademarks

• partnership interests

• copyrights

• patents

• royalties

What makes your asset an appropriate gift? The asset:

• Has been held by you longer than one year

• Has appreciated in value

• Is transferable (not under contractual obligation or other agreement with someone else)

Why should I donate intangible assets?

• You receive a greater tax deduction, often for fair market value

• You avoid capital gains taxes upon sale of the asset, and lessen your estate tax liability

• SCCF handles the administrative burdens for you

• Because of your deduction, it will cost you less to give more!

Should I give the asset, or sell the asset and then give?

Scenario A shows the wisest choice. 

(A) The donor gives an appreciated asset to Gospel for Asia's Harvest Foundation, thereby taking a $500,000 income tax deduction and receiving a $205,000 reduction in taxes.

(B) The donor sells an appreciated asset and then gives the proceeds, thereby taking a $405,500 income tax deduction and receiving a $166,255 reduction in taxes.

For more information:

You can give from our Home Page or if you have any questions or wish to start the process for your gift, please fill out the contact form, or call World In Need’s Harvest Foundation at 330-401-9404.  

Giving Tangible Personal Property

World In Need’s partner in establishing the Harvest Foundation, Orlando Christian Community Foundation (OCCF), is a recognized leader in receiving, managing and liquidating tangible personal property. They handle the administrative burden by working to sell the asset for you and then placing the net proceeds into World In Need’s Harvest Foundation.

From the Harvest Foundation, you may recommend grants to your favorite causes within the ministry of WIN. Full or partial interests may be given, and split-interest planned giving vehicles, such as charitable remainder trusts, may be utilized. These gifts usually provide you with a greater tax deduction than if you sell the asset yourself and then donate the proceeds to WIN. The most common types of tangible personal property that can be contributed to the ministry include:
 

• Artwork

• Jewelry

• Gems

• Precious metals

• Livestock

• Crops

• Timber

• Business inventory

Here's how it works (using art as an example)

1. Charles and Catherine donate a painting to World In Need’s Harvest Foundation. They purchased the painting years ago for $50,000, but today, it's worth $500,000. They take an immediate tax deduction and pay no capital gains on the asset transfer.

2. SCCF sells the painting for Charles and Catherine, placing the net proceeds into the Harvest Foundation.

3. Charles and Catherine may recommend grants from the Harvest Foundation to their favorite areas of ministry within WIN.

What makes your asset an appropriate gift? The asset:

• Has been held by you longer than one year

• Has appreciated in value

• Is transferable (not under contractual obligation or other agreement with someone else)

Why should I donate intangible assets?

• You may receive a greater tax deduction, generally for fair market value

• You avoid capital gains taxes upon sale of the asset, and lessen your estate tax liability

• OCCF handles the administrative burdens for you

• Because of your deduction, it will cost you less to give more!

For more information:

You can give from our Home Page or if you have any questions or wish to start the process for your gift, please fill out the contact form, or call World In Need’s Harvest Foundation at 330-401-9404.  

This information is designed to provide information and illustration of the subject matters covered. It is not intended, nor should it be used as legal, accounting or other professional advice. It is always a good idea to seek legal and tax advice from your professional advisor(s).