It’s a season that is full of wonder and often reflection. It is a time that you may be grateful for the blessings that God has bestowed upon you. This gratitude may lead you to make a charitable contribution to your church.
Each person’s financial situation is different and you will want to consider the type of assets and the gift plan that will be most effective for your situation. The following is a brief overview of your options. You are encouraged to speak to your financial advisor for your particular situation. The Presbyterian Foundation is also available to answer your questions regarding these gift plans.
Types of assets for your gift
Cash – This is the most common charitable gifts in the form of checks and electronic transfers. When you itemize your tax deductions, gifts of cash may be used to eliminate federal income tax on up to half of your adjusted gross income – you may also be eligible for state income tax savings.
Appreciated Securities – Using appreciated securities, such as stocks, bonds, mutual funds, for your charitable giving, can provide you with additional tax savings since you do not realize long-term capital gains and the current value, rather than your cost, may be reported as an itemized deduction.
Retirement plans – Charitable donations from IRAs are now permanent.
Donors over 70 ½ years can make charitable gifts directly from their IRA funds under a tax law provision made permanent in December of 2015. Please call the Presbyterian Foundation for more details or talk to your financial advisor.
Gift plans to consider:
– the funds are often used to create a memorial or a legacy gift that will provide a source of support to your church in perpetuity.
– combine all your giving into one fund and take a charitable contribution tax deduction for this year. You can then make grants from the fund to the mission and ministries you wish to support throughout the year.
Dec. 31: Make all 2016 gifts into your Fund
To ensure you receive your 2016 tax deductions, make gifts by Dec. 31. For more information call 800-858-6127, option 2.