Warning: This is going to be very similar to last week’s post. Same principals but different application: What do you think of the idea a rancher giving livestock to a church instead of cash? What are the pros and cons of doing such a thing?
Pros
- Taxes: Reduces tax bill. Where charitable contributions (cash donations) just reduce your income tax…if you itemize, livestock contributions reduce income tax AND self-employment taxes.
- Maximize Giving: Because of the tax savings, the church can receive a greater share of the gift…without having to share it with the IRS.
- Giving and Work: I really like the tying my income and my giving. For me, I tithe right from my salary. It’s very satisfying to see my paycheck and my tithe hit my bank account the same day. Ranching income is a lot messier. I like the idea of pledging a number of cows instead of pledging a specific dollar amount because it ties the work to the giving.
Cons – ?? I’m not sure what the downside is.
Useful Links
- From Bethel Church: https://www.bethelsc.org/giving/commodity_livestock_giving.cfm