‘Tis the Season: Maximize Your Tax Advantage

As Christmas approaches, a lot goes through our minds: what to give everyone, who to invite to that special party, and where will we eat Christmas Dinner?  In addition to all the planning is the nagging thought, “have I paid enough in taxes and have I paid my 2019 Church pledge and what am I going to do in 2020?”

The Foundation is here to help. We could help you create a Donor Advised Fund in which you contribute during this tax year a minimum of $10,000, with ability to request future donations in subsequent years.  In this way, DAF contributors find it beneficial to “bundle” their contributions in one tax year. You can pay your 2019 Church Pledge, pay ahead your 2020 Pledge, send a check to your Alma Mater, and even leave some money in the Donor Advised Fund to pay out in 2020, 2021, etc. At least half of the DAF must go to a Virginia United Methodist Church. Additionally, you can take the entire amount of the DAF off your 2019 taxes!

If you own stock that has escalated in value, you can make a Gift of Stock to your church.  All you have to do is direct your Broker to send the stock to Merrill Lynch who will sell the stock and turn over the entire amount from the stock to the Foundation. The Foundation will send a check for the entire amount to your church. When you give this money to your church, it will be completely tax deductible.  You don’t pay anything to sell it and you won’t have to pay Capital Gains tax! It’s a win-win for the owner of the stock and an easy way to get maximum tax benefit.

These are just two ways the Foundation can help you get the maximum tax advantage and help your church or another non-profit that you donate to.

To discuss further, give us a call 804-521-1121!  If you’d like us to come and talk to your church or your finance committee, call Bo Bowden or Tommy Herndon at 804-521-1121.  The Foundation stands ready to help you.