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During the Christmas Season as the year wraps up, is a great
opportunity to partner with LifeChurch financially to continue to reach
people for Christ with an End of Year Gift. In addition to the benefit
that the church will receive from your gift, various potential tax
benefits are associated with these options: cash, securities, real
estate, personal property, automobiles, unitrusts, annuity trusts,
& gift annuities.
If you plan to make a contribution to LifeChurch to be recognized for
tax purposes in the current calendar year, it must be received in the church
office by December 31, or postmarked that day, according to IRS
regulations. Donations received in before December 31 will be credited to the current year giving
records, not the new year, regardless of the date on the check or offering envelope. If
you have questions regarding your giving record, please contact Jane
Broe at 951.704.0436 or email janeb@getlife.tv
Here’s some descriptions of the types of End of Year Giving options:
1. Cash. Your gift of cash to LifeChurch could cost you much less at tax filing time.
2. Securities. Gifts of appreciated securities can be one of
the most advantageous ways of giving. If your gift of stock is one you
have owned for more than one year, you may deduct the full market value
of the stock. Additionally, you will bypass capital gains taxes.
3. Real Estate. Gifts of appreciated real estate are like gifts
of appreciated stock. Assuming you have owned the property for more
than one year, you may deduct the fair market value of the real estate
as a charitable contribution. In addition, all capital gains taxes are
avoided.
4. Insurance. Life insurance is a unique way to give to LifeChurch.
5. Personal Property. Gifts of tangible personal property
related to LifeChurch’s exempt purposes are fully tax deductible at
fair market value.. Jewelry is an example of an item which may be
deducted at fair market value.
6. Automobiles. The benefit of donating an automobile has long
had the potential to be extremely valuable because the trade-in value
is often much lower than the deductible fair market value.
7. Unitrust. The unitrust offers substantial tax savings while
providing annual income to you or your family. The unitrust is funded
with a donated asset – appreciated property or securities are usually
best.
8. Annuity Trust. Like the unitrust, the donor qualifies for tax
benefits and an annual income stream. The major difference is that the
annuity trust pays a fixed dollar amount based on the trust’s initial
value.
9. Gift Annuity. A charitable gift annuity is a contract between
a charitable organization and a person or couple. The charitable
organization – in this case, LifeChurch – promises to pay a determined
amount (quarterly, semi-annually or annually) to annuitant(s) for life
in exchange for assets transferred to LifePoint Church.
Financial advisors, a CPA, and a tax attorney are available to the church if any additional assistance is needed.
And here’s some things to consider when making decisions about End of Year Giving.
5 Tips for Year End Giving
1. Calculate your income.
Try to get a handle on your tax liability for the year. Did your
unearned income increase? Did you sell any appreciated assets? Will
you owe more taxes? This alone may motivate you to increase your
giving before December 31. In any case, by the time you fill out your
income tax return, it will be too late to make charitable gifts for the
previous year. Take the time to do some planning while you still have
the opportunity to make a year-end gift.
2. Review your stocks.
Look at the stocks you have held for more than a year. Which
ones have appreciated the most? It may be prudent for you to make your
year-end gift using one or more of these stocks. Here’s why: If you
sell the stock, you will incur capital gains tax on the appreciation.
However, if you give the stock and allow LifeChurch to sell it, no one
pays tax. You get a charitable deduction for the full amount of the
stock, just as you would if your gift was made with cash.
3. Do your giving early.
This is especially true if you want to make a gift of non-cash assets,
such as Securities, real estate, etc. Some gift transactions will take
more time to finalize than others, so we recommend that you complete
your gift sooner rather than later
4. Talk to your advisor.
Before making any significant gift to LifeChurch, or to any other
nonprofit for that matter, you should have your CPA, attorney, or other
advisor help you understand the impact of your gift on your income tax
return and estate. We at LifeChurch want your giving to be prudent, as
well as generous and joyful.
5. Make a difference in the community.
There are a lot of opportunities to help those in need. Your
year end gift to LifeChurch helps the name of Christ to continue to be
spread throughout the Temecula Valley and literally to the ends of the
Earth through our Missionaries. Familes are strengthened, marriages
restored, addictions broken, friendships healed, disciples are built,
and boys, girls, men, and women come to Christ and have new Life!
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