Tax Efficient Alternatives for Charitable Giving:
Gifts of Stock or other Appreciated Assets: You may not have to pay any capital gains tax on the transfer of the appreciated asset, yet the entire value of the gifted asset is potentially eligible for a tax deduction on your personal or corporate income tax return.* To learn more about how to donate your stock to Light of Christ Church, contact Vicki Barmore, LOC Financial Administrator, email@example.com.
Donor Advised Fund: This strategy allows you to contribute a lump sum of cash and/or appreciated assets to the Donor Advised Fund (DAF) in any calendar year. You are then able to take a current-year tax deduction for the full amount contributed (certain limits apply). Distributions are then made from the DAF to eligible 501(c)(3) tax-exempt charitable organizations over the subsequent 2, 3, 4 or more years until the balance has been fully paid out. This allows you to benefit from a higher itemized deduction in the current year, and then qualify for the standard deduction on your tax return during the years when charitable distributions are made from the Donor Advised Fund. This strategy is valuable during years of high income and lump sum assets are available to fund the Donor Advised Fund (sale of business, inheritance).*
Qualified Charitable Distribution: For those who are age 70 ½ or older, you are able to make distributions from your IRA accounts directly to a qualified charity on a tax-free basis! The annual limit is $100,000 per person that can be excluded from gross income each year. And, these Qualified Charitable Distributions (QCD) will offset your IRS imposed Required Minimum Distribution from your IRA accounts.* Please alert Vicki Barmore, LOC Financial Administrator, firstname.lastname@example.org, if you plan on making a QCD so these donations can be identified as your giving.
Charitable Bequest: Consider listing Light of Christ Church as a named Beneficiary of your Will, Living Trust, IRA, Annuity, Life Insurance policy or your Company Sponsored Retirement Plan. Proceeds paid out to Light of Christ Church are not taxable to the Donor’s estate and tax-free when received at Light of Christ Church.*
Other Tax Efficient Strategies: Charitable Remainder Trust, Charitable Lead Trusts, Charitable Remainder Annuity Trusts and Charitable Foundations.*
* Please seek the advice of legal counsel, a qualified accountant and/or financial advisor to determine if any of these tax-advantaged strategies are appropriate for you and your individual income tax circumstance.
Please contact Financial Administrator, Vicki Barmore at email@example.com if you choose to enact one of these options.