The end of the year is the perfect time to reflect and give thanks for the many ways God has enriched our life. Additionally, since tax laws encourage charitable giving, individuals who itemize their deductions can further reduce income taxes for 2017 if a gift is made by Dec. 31.
How Might You Give?
Sometimes gifts at year-end complete a pledge or long-term commitment. A gift above and beyond your regular contribution can help the church fulfill its mission commitments and serve the Kingdom. To honor a loved one or to honor the memory of a loved one with a gift to your church is a meaningful way to give thanks for that person and celebrate their life during the holiday season.
Basic Guidelines
Charitable contributions must be claimed for the year in which they are delivered. If you make a contribution in early January 2018, it must be claimed on your 2018 return. However, if your gift is mailed and postmarked in December 2017, it is deductible in 2017, regardless of when the gift was received and deposited.
Gifts of Cash
This is the simplest and most flexible way to make a gift. Many have found joy in giving to the church if they receive a year-end bonus. If you use cash, be sure to use an offering envelope with your name and address on it so your gifts are credited to you on your yearly statement. Checks must be dated 2017 and postmarked or received by Sunday, Dec. 31, 2017. (Note our office is closed December 25-29.)
Gifts of Securities
Consider a gift of stock that you have held for more than one year that has substantially increased in value. You could receive a charitable deduction for the fair market value of the assets on the date of the gift and avoid federal capital gains tax that would otherwise be due upon the sale of the asset.
If you own securities that are worth less now than when you purchased them, you may be better off to sell them, take the capital loss on your tax return, and contribute the proceeds.
The combined amount of the deductible loss and the charitable deduction may total more than the current value of the investment. Plan ahead – gifts of securities take several days to process. Check with your tax advisor to determine if a gift of securities is right for you.
Gifts from an IRA
Making gifts from an IRA or similar retirement plan may result in little or no tax on those withdrawals. If you itemize your deductions you should plan to report the amount withdrawn along with an offsetting charitable deduction. Check with your tax advisors for the specifics of your situation.
Those age 70 ½ or older should check with a tax advisor about the ability to make a tax-free charitable gift
directly from a qualifying IRA. The provision allowing such gifts is widely expected to be renewed for gifts
made in 2017. Again, plan ahead, these gifts may take several days to process.
For More Information
If you have questions or would like to make a gift of stock, please contact Joan Thomas, Director of Finance and Business Manager at jthomas@fvumc.org or 919-552-4331, ext. 107.