Making gifts at year-end is a holiday tradition for many. Considering which assets to give and in what forms to give them can be challenging. The Presbyterian Foundation can help you make the best choices to support your congregation and other causes you love.
- All donations must be made by December 31, 2017, to count as deductions for this tax year.
- The Foundation accepts gifts of stock and securities for most PC(USA) congregations and ministries.
- Distributions from IRAs can be donated, so long as certain conditions are met.
It’s a season full of wonder and reflection. It is a time that you may be especially grateful for the blessings that God has bestowed upon you. This gratitude may lead you to make a charitable contribution to your church.
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 giftCash – This is the most common charitable gift. It comes 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 can provide you with additional tax savings since you do not realize long-term capital gains. The value at the time of the donation, rather than your cost, may be reported as an itemized deduction. Appreciated securities include stocks, bonds and mutual funds, among others.
Retirement plans – Qualified Distributions from IRAs are encouraged. Donors who are 70 ½ years or older can make charitable gifts directly from their Individual Retirement Accounts (IRAs) under a new law passed in December 2015. Please call the Presbyterian Foundation for more details or talk to your financial advisor.
Gift plans to considerEndowment – These funds are often used to create a memorial or a legacy gift that will provide a source of support to your church in perpetuity. The core of the fund cannot be touched; only the interest can be spent.
Donor-Advised Fund – Combine all your giving into one fund and take a charitable contribution tax deduction for the current tax year. Then make grants from the fund to the mission and ministries you wish to support at any future time. This simplifies giving.
Make all 2018 gifts into your Fund by December 31
To ensure you receive your 2018 tax deductions, make gifts by December 31. For assistance with setting up a fund or making gifts from a fund, call 800-858-6127, option 2.