Whether you are a donor or a church leader, November is a great time to think about end of year giving that benefits your church. The United Methodist Foundation of West Ohio can help.
Here are some giving strategies donors should consider.
Gifts of Non-Cash Assets
Most people give cash when making an end of year gift, but in 2021, it may be a good idea to consider appreciated non-cash assets instead, such as publicly traded securities, restricted stock, or private business interests. By donating these assets, you may avoid capital gains taxes versus selling the stock, then donating it. The UMFWO can assist you in making a stock transfer gift to the Foundation, your church, a ministry of the Conference, or another United Methodist cause. Simply give us a call at 380-223-9339 or learn more at https://umfwestohio.org/services-for-individuals/gifting-appreciated-stock/.
Combining Your Deductions
If you think your total itemized deductions may fall below the standard deduction in 2021, you may want to consider combining your 2021 and 2022 charitable contributions into one year (2021). If you choose this option, you may itemize all the deductions on the 2021 tax returns and take the standard deduction in 2022. This allows for greater charitable impact and potentially a larger two-year deduction. Consult your tax advisor to see if this strategy is right for you. Then simplify your end of year giving by making one gift to the UMFWO and allowing us to distribute your gifts in whatever manner you choose to UM related causes.
Making a Qualified Charitable Donation
Finally, if your church has an endowment, you might want to consider making a larger gift through a Qualified Charitable Distribution of Individual Retirement Account assets (otherwise known as a QCD of your IRA). The Foundation can help you handle such a gift. Here’s a tip directly from Schwab Charitable about this type of gift:
Whether itemizing deductions or claiming the standard deduction, individuals age 70½ and older can direct up to $100,000 per year tax-free from their IRAs to charities through QCDs. By reducing the IRA balance, a QCD may also reduce the donor's taxable income in future years, lower the donor's taxable estate, and limit IRA beneficiaries' tax liability. QCD requests generally should be initiated by early December at the latest to ensure processing is complete before the end of the year.
Church leaders should take advantage of this time of year, as well. Beginning with Thanksgiving and through the holiday season, your congregation is focused on giving. Encourage your members and supporters to give at the end of the year by sharing special end of year giving reminders. You can also remind them that gifts to your endowment keep on giving forever, beyond immediate needs and the current holiday season.
A little planning now will reap benefits to the individual donor and your church’s operating budget, special ministries, or endowment in 2022 and beyond. Contact the Foundation for more information or assistance. www.umfwestohio.org.