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We are quickly approaching the busiest giving time of the year. As you consider the gifts God is leading you to give, we invite you to consider the following year-end giving tips:
Give an appreciated asset – while cash remains the most popular way to give, it may not always be the best. By giving an appreciated asset, you can offset the capital gains and receive an income tax deduction. Securities are the most commonly donated appreciated asset and are almost as easy to give as cash!
If you are age 70 ½ or more – consider doing your charitable giving through your IRA. Qualified charitable distributions (QCDs) can help to satisfy your required minimum distribution (RMD) requirement and will not count as income to you. You can initiate this type of gift through your IRA custodian.
Donor Advised Fund – giving a gift to your donor advised fund will give you an immediate tax deduction, even if you have not decided on the ultimate recipient of your gift. When you are ready, distributions from your donor advised fund are accepted by most churches and ministries. Donor advised funds are often used by donors to “bunch” their giving in order to itemize on taxes in a given year. By contributing an amount equal to several years’ worth of giving in a single year, donors can take advantage of itemizing on their taxes for that year while distributing the gifts over time.
If you need an income – we can help! There are many types of gifts that give you a charitable deduction as well as an income for a specified number of years or even your lifetime. At the end of the designated period, remaining funds are distributed to the ministry(ies) of your choice.
Be aware of deadlines – the deadline for online giving is 11:59 PM on December 31 in your time zone. Giving through the mail must be postmarked December 31. The following methods take additional time to process and need to be planned well in advance: 1) Donor Advised Funds; 2) Qualified Charitable Distributions (QCD) from an IRA; 3) Appreciated Assets (stocks, mutual funds, etc.). Beat the rush this year and get your gift in early!
Give all year long - while the end of the year is a popular time to give, ministries appreciate receiving gifts throughout the year. Surprise them with a gift earlier in the year!
FM Financial would love to speak with you and answer any questions you might have about year-end giving or any particular giving method. Our team has received extensive training on tax-wise methods to help you maximize the impact of your gift. Contact us today to begin the conversation.
YEAR-END GIVING PODCAST - FM Financial’s Chris DeBacker recently sat down with FMCUSA Director of Communications, Brett Heintzman, for the Light + Life podcast to discuss year-end giving for individuals and churches. It is available wherever you listen to podcasts or by using the following link:
