Every gift we take starts the same way — a conversation about how to get the most dollars to your ministry while keeping the tax and liability picture something we're both comfortable with. Oil and gas interests are no exception. If we can't take yours, we can very likely introduce you to someone who can.
It's an easy question, and it's where every oil and gas conversation starts — because the answer changes how much risk we're taking on together, and how quickly your gift can move toward your ministry.
You receive a share of production revenue but bear none of the operating costs, liabilities, or decisions. This is the more straightforward gift to make.
You bear a share of drilling and operating costs, and the interest is treated as an active trade or business. This requires a closer look before we accept it.
| Consideration | Royalty interest | Working interest |
|---|---|---|
| UBTI exposure | Generally minimal | Likely — reviewed and may require Form 990-T filing |
| Environmental / plugging liability | Not applicable | Reviewed before acceptance |
| Approval level | President | Board of Directors |
| Appraisal requirement | Qualified appraisal for gifts over $5,000 | Qualified appraisal, plus operating history review |
| Typical holding period | Short — interest is sold or assigned promptly | Reviewed case by case |
Send the division order, lease, or most recent statement — that's how we identify whether it's a royalty or working interest.
Royalty interests typically move quickly; working interests go through additional review before the Board signs off.
Once transferred and converted, net proceeds — less a modest Ministry Grant — are directed to your chosen donor-advised fund.
Send us the lease or division order and we'll tell you plainly what kind of interest it is, what it would take, and whether we're the right home for it. If we're not, we'll do our best to point you to someone who is.
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