Donations in kind
Donations in kind are donations of stock, real estate, or other assets directly to the Church. These donations are often made to reduce or eliminate the amount of tax that needs to be paid on appreciated assets. Donations of cash may also be made (usually by check) directly to the Church.
Donations in kind are held in the strictest confidence. They are processed directly by Church headquarters, and do not show up on any ward records in MLS. If any of the funds are directed to the Ward Missionary or Fast Offering categories, they will show up on the Unit Financial Statement. For all other categories, even Bishops cannot get details regarding dollar amounts.
The steps that are taken are as follows:
- The member contacts the Church Donations-in-Kind office and receives the proper instructions on how to make a transfer through their brokerage company. The church has account numbers with many of the companies and the Donations-in-Kind office will provide this information to you as the donor.
- At the same time you authorize the brokerage company to transfer shares to the Church's account, send an e-mail to email@example.com or a fax to (801) 240-2202 with the following information:
- Your name & home address
- Name of stock donated
- Number of shares donated
- Name of brokerage (example: Fidelity)
- Allocation (e.g., Tithing). You can allocate by number of shares, percentages or by amount. If you donate by amount one category will need to be designated as "remainder" (example: $100 Fast Offerings, $50 Ward Mission Fund, remainder Tithing).
- Name of ward and stake. This is only required if you designate a category other than tithing. If you know your unit number please include it; if not, the Donations-in-Kind office can look it up.
If you have any further concerns please feel free to call the Donations-in-Kind office at 800-453-3860 ext 2-2554 or 801-240-2554.
Donations-in-Kind Rm 1514 50 E North Temple Salt Lake City UT 84150
Real estate donations
Contact the Real Estate Services Division at Church headquarters that handles property donations at 800-453-3860 ext 2-2554 or 801-240-2554.
The member that makes the donation will get receipts from his stock broker indicating that he made the donation. The Church will send an Official Tax Statement directly to the donor once the Donations-in-Kind office receives all the information. You may receive your official receipt soon after the Church receives your donation.
Informing the local unit
If all or a portion of the in-kind donation is designated for the local unit (the most common case would be a Ward Missionary donation), then the unit will receive a letter from the Church informing them of the donation amount and category(ies). The transaction(s) will also show up on the Unit Financial Statement.
The following statement applies to the US only; different rules may well apply in other countries. Priesthood leaders and clerks should advise members to speak with the Church Donations-in-Kind office and to consult a tax adviser to discuss their particular tax situation.
There may be significant tax advantages for doing this. A member may be able to avoid federal estate and income tax on the property's increase in value while still taking any charitable donation deducation. For example, he or she paid $10 per share for 100 shares of stock which increases to $100 a share. Donation of this stock to the Church as "tithing-in-kind" is recorded as $10,000 donation. The tax effect is that the member (a) avoids taxation on the $9,000 gain while still (b) likely qualifying for a charitable donation deduction for the full $10,000.
Donations in kind to a local unit
In some situations, a member may want to donate something to the ward. For example, in one ward a someone donated a new trailer to the ward (for the use of the scout troop). If you call the MLS help line at Church HQ and navigate to the Donations-in-Kind menu item, you can speak to someone who can help with the procedure for such donations. But basically it is:
- The bishop sends to the Donations-in-Kind office a letter stating:
- the date of the donation
- that the equipment was helpful to the ward
- a detailed description which should include the value of the item.
- the donor's legal name, address, and possibly phone number just in case there is a need for the Church to contact them.
- the Donations-in-Kind office will then generate a letter to the donor which may be used for tax purposes.