Why Give at Year-End?
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 2016 if a gift is made by December 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.
Basic Guidelines
Charitable contributions must be claimed for the year in which they are delivered. If you make a contribution in early January 2017, it must be claimed on your 2017 return. However, if your gift is mailed and postmarked in December 2016, it is deductible in 2016, 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.
NOTE: Checks must be dated 2016 and postmarked or received by Dec. 31, 2016. (Note that our church office closes at 1pm on Friday, Dec. 30 and is closed on Dec. 31.)
Coming in December: We’re adding a fast, simple and secure way for you to make and fulfill your annual pledge or make a special gift during this season of giving. With Give by Text, you can make a weekly offering by simply sending a text message from your smartphone. Give by Text is a fast, secure way to send donations, and it takes just minutes to sign up and support the church. Details soon!
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. Plan ahead, though, 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, plan to report the amount withdrawn along with an offsetting charitable deduction. Check with 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 from a qualifying IRA. Again, plan ahead, these gifts may take several days to process.
For More Information
If you have questions or would like to request the forms needed for a gift of stock, contact Joan Thomas, Director of Finance and Business Manager at jthomas@fvumc.org or 919-552-4331, ext. 107.