Isn’t it a bit soon to think about year-end giving? The kids just went back to school!
Actually, it is never too early to think about year-end giving. Financial service providers and ministries alike appreciate hearing from clients and donors throughout the year, not just in December. By planning ahead, not only can you avoid the busyness of year-end, you might also find some extra tax savings. Keep reading for year-end giving tips and deadlines.
Appreciated Securities offer the avoidance of capital gains as well as a tax deduction for itemizers. They are almost as easy to give as cash, but need a bit more time to process. Be sure to initiate your gift of appreciated stocks no later than December 15. Mutual funds take a little longer and should be initiated by December 1. FM Financial would be happy to facilitate your gift of appreciated securities to any Free Methodist church or related ministry.
Qualified Charitable Distributions (QCDs) are quickly becoming a favorite giving method of those who are at least age 70 ½ with an individual retirement account (IRA). QCDs can help satisfy your required minimum distribution (RMD) and will not count as income. To make sure your gift is processed in a timely manner and received by the designated charity/ministry before the end of the year, we strongly encourage you to contact your IRA custodian no later than November 15. Our client service team would be happy to help you with a QCD through your GuideStream* or GoldStar IRA.
Distributions from a Donor Advised Fund – gift recommendations from your donor advised fund should be initiated no later than December 15 to ensure plenty of time to reach the gift recipient by the end of the year. Donor advised funds are easy to set up and offer immediate tax advantages for contributions while you decide when to make distributions. Donor advised funds are often used to “bunch” giving in order to itemize in a given year. By contributing an amount equal to several years’ worth of giving in a single year, donors can take advantage of itemizing on their taxes for that year while distributing the gifts over time. They accept contributions of cash or appreciated assets. If you are interested in setting up a donor advised fund, we are able to assist you through our relationship with GuideStream Charitable Gift Fund.
Cash and online giving remain the most popular ways to give and are appropriate at any time. They are also a procrastinator’s best friend. The deadline for online giving is 11:59 PM on December 31 in your time zone. Giving through the mail must be postmarked December 31.
Our team would love to answer any questions you might have about year-end giving or a particular giving method. We are familiar with tax-wise methods and strategies to help you maximize the impact of your gift. Contact us today to begin the conversation.
*guidestreamfinancial.com/important-disclosures/
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