Giving Thanks at Year-End

You know the phrase, “it’s the most wondrous time of the year”!  However, did you know that it is also the most generous time?  Americans give a significant portion of their charitable gifts between Thanksgiving and December 31.  I have had donors call me on New Year’s Eve to make sure that the meet the deadlines for the year-end giving to count.

Charitable giving in 2016 exceeded more than $390-billion and was an all-time high!  About 80% of those gifts came from individuals – people like you.  Foundations and corporations combined gave the rest.

A key question is:  How can you make the most effective charitable gifts this year?

• CASH GIFTS are always easy and welcome to your church or charity. They are the most popular – the least complicated – the most convenient – and require the least planning.  Whether given by cash, check or credit, the process is simple and straightforward.  Some churches and charities allow gifts by EFT (electronic funds transfer).
  • Cash gifts must be completed and/or postmarked by December 31st to be tax deductible for this year.
  • Another word of advice:  Remember to save your receipts and acknowledgements.  
  • You can deduct cash contributions up to 50% of your adjusted gross income.  Few people reach this limit, but the tax code allows such donors to ‘carry forward’ excess gift amounts for up to five additional years.
• MULTIPLYING GIFTS – You may be able to double your year-end charitable gifts through matching programs – possibly from an employer or a community foundation.
• NON-CASH GIFTS have additional advantages.  Non-cash gifts exceed about $50-billion annually – or about 16% of all charitable giving from individuals.  These may include:
  • Publicly traded stocks – which are the largest share of non-cash gifts.  You receive tax benefits when giving appreciated assets, in addition to the charitable deduction.  To learn more and see an illustration, click here.  To view the form for making gifts of stock, click here.
    • Please contact us if you are planning a gift of stock at year end – and send us the completed form.
    • Allow extra time to make certain your gift is completed and transferred before December 31st.
  • Works of art or antiques and collectibles that are highly appreciated.  Special IRS rules apply, including the need for an independent appraisal for any gift over $5,000.  Consult with advisors in advance.
  • Real estate that is appreciated also has special rules and requires certified, independent appraisal.  The Foundation’s team is equipped to counsel with your plans and interests in making such a gift. Learn more about gifts of real estate here.
• RETIREMENT PLANS may be a source to help you meet your charitable giving goals.  Many adults have funds in a qualified retirement plan, such as an Individual Retirement Account (IRA), 401k or 403b.  These may be a great source for current and/or future gifts, depending on your age and future needs.
  • For those over age 70 ½: If you have an IRA, you can transfer up to $100,000 per year to qualified charities.  These IRA transfers bypass taxes and can count toward the minimum required annual distribution (RMD).  However, such gifts are not tax deductible since they have been tax deferred.
  • The account owner must make a written request to the plan manager to authorize the distribution. To seek assistance with planning for a qualified charitable distribution (QCD), you may contact the Foundation office or you may read more here.
• LEGACY GIFTS PLANNING 
  • Gifts through wills, trusts and insurance policies, retirement accounts and other long-range financial plans can be additional ways to support and endow causes and charities that fulfill one’s life mission. Other such plans and gifts are done through amending the beneficiary arrangements on the plan to name the charity in full or in part.  As a rule, these require additional planning assistance from professional advisors and may include tax benefits.  To learn more, click here.

The Foundation staff is available to consult with individuals to discern their goals and assist them in planning appropriately to endow ministries into the future or to make special year-end gifts. Contact us to schedule a time to meet and plan for next steps.