CGNA: Noncash Opportunities, Aggregate Markets and Property Types, Part 2

CGNA: Noncash Opportunities, Aggregate Markets and Property Types, Part 2

Article posted in Assets on 24 April 2017| comments
audience: National Publication, Bryan K. Clontz, CFP®, CLU, ChFC, CAP, AEP | last updated: 26 April 2017
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Summary

As we get into the substance of the book we begin to explore the bread thanks to the potential of non cash assets in all forms.

This article is an excerpt from Charitable Gifts of Noncash Assets, a comprehensive guide to illiquid giving by Bryan Clontz, ed. Ryan Raffin. Published by the American College of Financial Services for the Chartered Advisor in Philanthropy Program (CAP), with generous funding from Leon L. Levy. For a free digital copy, click here, and to order a bound copy from Amazon, click here.

Total Charitable Contributions (Cash and Noncash, From All Sources Including Individuals, Corporations, and Bequests) in the United States, from 2003 to 20149

Note that the contribution amounts largely track overall U.S. economic performance in the years, before, during, and after the 2008 economic downturn. By 2014, the contribution amounts had returned to pre-recession levels.

Individual Noncash Charitable Contributions: All Returns with Itemized Donations, by Donation Types, Form 8283, Tax Years 2003 to 2013

The following table below breaks down noncash charitable deductions by asset type from 2003 to 2013. Dollar amounts in billions. All information derived from statistics and tables available from the Internal Revenue Service’s Statistics of Income at https://www.irs.gov/uac/tax-stats.

In analysis of noncash contributions, the IRS notes the following trends:

“Over the years, taxpayer donations of corporate stock have consistently represented the highest amounts of donations. Clothing has accounted for the second largest share of donations in nearly every year since 2006; the sole exception was 2007 when taxpayers reported slightly larger noncash contributions for real estate, land, and easements. However, while the amount of clothing donations has remained consistent since 2006, the amounts deducted for corporate stock and real estate, land, and easements declined significantly between 2007 and 2009. Donations of corporate stock have almost recovered since that time, but donations of real estate, land, and easements have remained relatively low. In 2007, taxpayers reported $23.7 billion in corporate stock donations, and, together, the declines in 2008 and 2009 represented a 59.0-percent decrease since 2007. For 2010, stock donations rose 37.3 percent, followed by increases for 2011 (19.5 percent), 2012 (5.1 percent), and 2013 (17.7 percent).” 10

Asset type

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Total charitable deductions

178.953

179.059

160.337

158.188

148.595

161.870

174.504

173.018

172.025

156.200

139.666

Stock, mutual funds, other investments

23.916

22.358

18.663

17.770

11.465

15.697

27.708

26.450

19.761

17.605

15.786

Real  estate & easements

12.167

4.509

3.918

5.456

5.044

7.218

12.907

8.256

12.674

9.459

20.956

Art and collectibles

1.271

1.380

0.999

1.275

0.984

1.511

1.260

1.304

1.461

1.212

0.866

Subtotal

37.354

28.247

23.580

24.501

17.493

24.426

41.875

36.010

33.896

28.276

37.608

% of all deductions

20.87

15.78

14.71

15.49

11.77

15.09

24.00

20.81

19.70

18.10

26.93

Food

0.217

0.371

0.110

0.101

.091

.121

0.101

0.100

0.111

0.104

0.079

Clothing

9.867

9.381

9.050

8.327

7.608

7.940

7.759

6.298

7.085

6.349

5.831

Electronics

0.409

0.422

0.408

0.457

0.365

0.432

0.372

0.445

0.475

0.478

0.376

Household items

4.223

3.737

3.626

3.264

3.226

3.141

3.921

3.847

3.860

3.466

3.224

Cars & other vehicles

0.395

0.468

0.505

0.400

0.387

0.613

0.727

0.594

0.622

2.672

2.476

Other donations

3.719

4.289

3.576

2.313

1.779

2.686

3.907

3.017

2.964

2.178

1.477

Total noncash deductions

56.098

46.915

40.856

39.362

30.951

39.359

58.663

50.310

49.012

43.523

51.073

% of all deductions

31.35

26.20

25.48

24.88

20.83

24.32

33.62

29.08

28.49

27.86

36.57

Comparing the total charitable contributions over this period to total deductions and specific noncash deduction amounts provides valuable insight. Consider the total charitable deductions and overall contribution numbers in the following data breakdown:

Asset type

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Total charitable contributions

334.50

329.32

298.45

288.16

274.78

299.61

311.06

296.09

292.43

260.26

237.45

Total charitable deductions

178.953

179.059

160.337

158.188

148.595

161.870

174.504

173.018

172.025

156.200

139.666

% of donations deducted

53.50

54.37

53.72

54.90

54.08

54.03

56.10

58.43

58.83

60.02

58.82

Investments, real estate, art, & collectibles subtotal

37.354

28.247

23.580

24.501

17.493

24.426

41.875

36.010

33.896

28.276

37.608

% of all deductions

20.87

15.78

14.71

15.49

11.77

15.09

24.00

20.81

19.70

18.10

26.93

% of all contributions

11.17

8.58

7.90

8.50

6.37

8.15

13.46

12.16

11.59

10.86

15.84

Total noncash deductions

56.098

46.915

40.856

39.362

30.951

39.359

58.663

50.310

49.012

43.523

51.073

% of all deductions

31.35

26.20

25.48

24.88

20.83

24.32

33.62

29.08

28.49

27.86

36.57

% of all contributions

16.77

14.25

13.69

13.66

11.26

13.14

18.86

16.99

16.76

16.72

21.51

 

Source: Liddell, P. and Wilson, J., “Individual Noncash Contributions, 2012,” IRS Statistics of Income Bulletin, Spring 2015, 3, https://www.irs.gov/pub/irs-soi/soi-a-innc-id1507. pdf.

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