Appreciated Land & Donor Advised Funds
King David is one of the most beloved characters in the Old Testament. God exalted him through the course of years from shepherd, to giant slayer, then King of all Israel. With a heart like God’s own, he expanded and extended the nation to geo-political significance, all the while chasing a singular dream: the construction of the Temple.
God had given him the resources and the building plans, yet denied him the opportunity to actually bring it to fruition. He would pass that responsibility to his heir, Solomon. Toward the end of his life, David committed a sin by conducting a census of the people against the counsel of his advisors. The census invoked God’s punishment, resulting in a plague upon the people. As David repented of his sin, he was given the opportunity to offer a sacrifice. 2 Samuel 24 tells us that he went to a man named Araunah to purchase a piece of land and oxen for the sacrifice.. Though Araunah offered the land and the animals to the King free of charge, David insisted on making the purchase, stating, “I will not present burnt offerings to the Lord my God that have cost me nothing” (2 Samuel 24:24).
If the reader stops there they will miss the deeper significance of this story, because when it is played forward we find that the piece of land David purchased would eventually become the building site for the Temple constructed by Solomon. (2 Chronicles 3:1)
Shane and Melanie were devout believers and members of their church and had been committed tithers for many years. God had blessed their business and they were seeking to make the shift from success to significance. They had traded their days for dollars, and now wanted to trade their dollars for days. When Melanie’s mother died, she inherited the 250 acre family farm, valued at approximately $4 million. She and her husband did not need the money, nor did they need additional income. So they used the farm to establish a Donor Advised Fund so they could increase their support for their church as well as other charitable interests. Setting up the Donor Advised Fund provided them an immediate tax deduction and avoided capital gains tax on the sale of the farm. It also removed a significant asset from their estate. Melanie said, “We love the Donor Advised Fund, especially because it has allowed us to include our children in making grant distributions. Because of the Fund, we have been able to effectively pass on our values to our children as we have taught them about generosity.”
At the time of his death, King David was able to pass his core, spiritual values to his son Solomon. Solomon was able to pick up the mantle of his father’s values, and take the blueprints, the building materials, and the land to begin construction of the Temple. Solomon not only fulfilled his father’s legacy, he adopted it as his own.
One of the ways that you can continue your legacy and pass your values to your heirs is through a Donor Advised Fund. A Donor Advised Fund is a charitable giving checking account somewhat like your own miniature family foundation where you can control all of your giving. When funded by an appreciated asset like business equity, land, or stock, you can receive significant tax savings while supporting one or more qualified charities on your own time table. It is one of the most effective ways to teach children and grandchildren about generosity as well as a powerful way to pass your legacy and values on to the next generation.
When the Temple was completed, King Solomon concluded his prayer of dedication that affirmed he had received his father’s values with these words:
“And now arise, O Lord God, and enter your resting place, along with the Ark, the symbol of your power. May your priests, O Lord God, be clothed with salvation; may your loyal servants rejoice in your goodness. O Lord God, do not reject the king you have anointed. Remember your unfailing love for your servant David” (2 Chronicles 6:41-42).
