Learn how you can give to the Lord's work and benefit from paritcular tax advantages. Have appreciated assets? You can gift them without incurring the tax and the church or charity can sell the asset without tax. This can be a true win-win situation.

Assume that you have decided to make a substantial gift of, let's say, $10,000 to your church. Traditionally, you would write a check for $10,000.

But what if you have an investment portfolio that has grown substantially. Could there be a way to give that same $10,000 in a way that would create a larger tax savings? The answer is yes and here's how.

Instead of writing a check for $10,000, give your church $10,000 of your most highly appreciated investment.

How does this create a larger tax savings? Let me explain by using an example. Let's assume that you bought a investment several years ago for $5,000 and now it's worth $10,000. Let's also assume for simplicity that you are in a 30% income tax bracket and a 15% capital gains tax bracket.

Let's now compare the tax efficiency of the two methods.

But you say, "I don't want to give that investment because I believe that it will continue to increase in value." Does that put an end to this strategy? Not at all.

Instead of giving the $10,000 check to your church, use it to purchase new shares of the investment at the same time that you gift the old shares. Your basis changes from $5,000 on the old shares to $10,000 on the new shares which results in the same $750 tax savings but you get to keep the investment.

There are some very important things to keep in mind when considering this strategy:

1. You will need to make sure that you have owned the investment for over 12 months or you will only be able to deduct what you paid for it (basis), not its current value.

2. You will want to keep good records of your investment transactions so you can substantiate your basis. The records should include the number of shares, the purchase price per share, the date of the transaction and the total dollar amount. Also, you should keep track of all dividends and capital gains that are reinvested to purchase additional shares in the same manner.

3. There are four methods which may be used to calculate gain or loss on gifts, sales, or exchanges. Make sure to consult with your tax advisor regarding the choice of method.

4. You also need to plan ahead. Most people own stock in "street name" therefore they don't have the actual stock or investment certificate. You will need to check with your stockbroker to determine the procedure they require to make the gift.

5. Also check with your tax advisor to make sure that you will get full credit for the gift. There are certain circumstances when you won't.

One final thought. Saving taxes is not a reason to give; it is simply one result of giving. A Christian should pay their fair share of taxes but not more than their fair share.

A survey done tells us that there is 8¢ of overhead for every dollar used by a church. There is 27¢ of overhead for that same dollar used by a general charity, but there is $3 of overhead for every dollar used by government (1).

The church is much more effective in the use of your gift dollar than the government is in the use of your tax dollar. I'm also sure that the government will at times use your tax dollar in ways that are morally and ethically contrary to your beliefs.

A Christian is responsible and accountable to be a wise steward and being a wise steward means favoring gift dollars over tax dollars whenever possible.

Proverbs 15:22 tells us that, "Without consultation, plans are frustrated. But with many counselors they succeed", so as with all financial strategies, we recommend that you not take action until getting personal advice from your legal, tax, or financial advisor. What's appropriate and most effective for one person may not be for another.

(1) Survey by the Association of Life Underwriters of Washington, D.C.