Every year around this time we have church members approach the office about options for tax-advantaged giving for the end of the year besides the regular tithing. There are a few things we see happen regularly and always encourage members to talk to their accountant or financial advisor to get the final word on the tax implications of what they may choose to do. The things we see are RMDs (Required Minimum Distributions) from an IRA. This applies if you are above a certain age and are required to take a distribution from an IRA, which can then be taxable to you. By giving it to the church or other non-profit, you may be able to get credit for a distribution and avoid taxes on it. This is definitely a scenario to talk to your advisor about because there are certain levels to the distribution. The other thing we see frequently is the direct transfer of individual stock shares or mutual funds. The nice thing about these is that you could claim your original purchase price as the “cost” and then the price difference when you initiated the transfer as the “donation”. For example, if you paid $10 for a stock and it was worth $40 you could get the difference in share price ($30 per share) as a donation. Again, as we have said before, check with your accountant and/or financial advisor to clarify your benefits as each situation is different. If you have any questions, please reach out to Robb in the church office.
End of year giving questions
