Did you know that more charitable giving happens in December than any other time of the year? Over one-third of all charitable giving is done in the last quarter of the year. The majority of that giving happens in the month of December.

December is a time to focus on charitable giving and close out the year strong, and even churches can encourage year-end gifts. Here are four tips to encourage year-end giving in your congregations.

In all of this, the Presbyterian Foundation is here to help.  Start with your Ministry Relations Officer, which you can find here.

Additionally, you can find year-end giving bulletin inserts, slides for PowerPoint, a brochure, and much more to use in your congregation on this web page.

Tip #1: Appreciated Securities

Only about 11% of our net worth, on average, is in our bank accounts. However, in our congregations we typically ask for cash gifts. But that ask is from the smallest portion of net worth that a family or individual has.

Appreciated securities are gifts from stocks, bonds, or other non-cash gifts such as real estate. Appreciated securities gifts are often significantly larger than cash gifts. One of the main reasons this is true is because of the tax benefits realized by donors when giving appreciated securities. With an appreciated securities gift, there is the potential that the capital gains are not taxed. There is also the benefit of a charitable tax deduction of the market value of the gift.

Begin the process of making a securities gift by mid-December at the latest, as these gifts take time to process. It is also important to note that the donor must transfer the security “in kind” to receive the tax benefits. If your congregation is not set up to receive this type of gift, the Presbyterian Foundation can help with this. See this link for the steps to make a gift of securities or ask your Ministry Relations Officer for help.

Tip #2 : Donor-Advised Funds

Donor-advised Funds have been the fastest growing charitable giving vehicle by far for many years now. Donor-advised Funds are a vehicle in which a donor transfers assets to a charity and the donor retains advisory recommendations over the fund. The donor can recommend how it is invested, where to make grants, whether those grants are out of principle or out of income, and when the grants are to be made. Contributions to a Donor-Advised Fund are considered a tax-deductible gift.

An additional tax benefit consideration relates to itemized verses standardized deductions for charitable giving. When using itemized deductions, the total must be greater than the standard deduction amount. A Donor-advised Fund allows the donor to “bunch” giving from multiple years into one year so that that year’s deduction can be itemized.

Many people don’t consider giving to their congregation from their Donor-advised Fund so it is important to make members of your congregation aware that you accept Donor-advised Fund grants. It is also important to note that how you acknowledge that gift and thank for that gift is different than for a direct gift.

Tip #3: Required Minimum Distributions from IRAs

A required minimum distribution (RMD) is the amount that IRA owners must withdraw from their retirement accounts to satisfy IRS regulations. If you turned 73 any time before December 31, 2024, you are required to take RMDs. If you turned 73 during 2024, you must begin taking them by April 1, 2025.

RMDs may be satisfied in one of two primary ways:

1. By the individual taking a direct disbursement, or
2. By the individual requesting a Qualified Charitable Distribution.

A Qualified Charitable Distribution (QCD) is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is at least 70 1/2 years old that is paid directly from the IRA to a qualified charity. In other words, a QCD is when IRA owners who are at least 70 1/2 can direct their IRA provider to send a check drawn from the IRA directly to a charity of their choosing – which can be your church or ministry. QCDs are a tax-smart way to support the charities you care about most, including your local church.

Tip #4 Planned Giving Reminder

Interest in planned giving is growing dramatically. Data from the IRS reflects that charitable bequests are actually three times larger than lifetime giving. When people commit to planned gifts, their annual giving goes up as well.

Remind your congregation that you accept planned gifts and to consider adding the church to their will, or even as the beneficiary of a life insurance policy.

Find many more resources about planned giving on our website.