Stewardship Ways to Give
Here are some specific end-of-year giving ideas to consider.
Gifts of Cash
If you made a pledge for calendar year 2008, and your economic situation allows, please consider paying your pledge in full by the end of the year. No matter your income level, if you itemize deductions on your tax return, you will receive a tax deduction for your gifts.
Gifts of Stock
With the market down so steeply this year, it may sound silly to talk about gifts of appreciated securities. But many people who have owned stock for many years may still be able to give appreciated securities and enjoy tax advantages. If you give appreciated stock to your church, not only do you receive an income tax deduction for your gift but you also avoid the long-term capital gain tax were you to have sold the stock yourself. When you give stock to the church, the church sells it tax-free and receives the full value of the gift. If you own stock that has gone down in value (who doesn’t?) you may be able to sell the stock, make a gift to your church, and apply the realized loss on your 2008 tax return. Please be sure to check with your financial advisor before making any stock gifts or transactions to see which strategies are best for you.
IRA Charitable Rollover
With the passage of the Emergency Economic Stabilization Act in October, Congress reinstituted the IRA Charitable Rollover provision originally signed into law in 2006. This allows taxpayers 70½ years of age or older to make tax-free distributions in 2008, and again in 2009, from their traditional and Roth IRAs directly to their United Methodist church, mission, agency or other qualified charity. An owner of a traditional or Roth IRA may instruct the IRA plan administrator to make distributions directly to qualified charities. An individual may make up to $100,000 in distributions to as many qualified charities as he or she wishes. These distributions will not be subject to federal income tax and can count toward the required minimum distribution. This gift opportunity is for traditional IRA and Roth IRAs only, and may not be used to fund a charitable gift annuity, charitable remainder trust or any other life income plan.
Consider a bequest from your will or other estate planning vehicle. A bequest is an excellent way to “leave your legacy” to your church as a statement of lifelong, comprehensive Christian stewardship. If you have a will, a simple codicil is all that is required to make a bequest. If you don’t have a will, we strongly encourage you to have one written, and please consider a bequest to your church when you do so.
Life Income Arrangements
Life income arrangements, like charitable trusts and charitable gift annuities, combine a planned gift to your church with income to the donor. These are excellent planned giving alternatives that not only benefit the donor’s church, but also include income and tax benefits for the donor.
We encourage you to check with your own professional advisors before making a gift.
For more information, please contact Donna Brisbin at 407-876-4991 ext. 227 or email.