Tax Wise Giving at Year’s End
By The Rev. Dr. Ralph Graham
Making gifts at year-end is a holiday tradition for many. It is a season full of wonder and reflection. It is a time that many of us feel especially grateful for the blessings that God has bestowed upon us, and this gratitude often inspires many of us to make a charitable contribution to Trinity Presbyterian Church.
Considering which assets to give, and in what forms to give them, can sometimes be challenging. As you consider the type of assets and the gift plan that will be most effective for your situation, we would like to provide a brief overview of your options.
Types of assets for your gift:
Cash – This is the most common charitable gift. It comes in the form of checks and electronic transfers. When you itemize your tax deductions, gifts of cash may be used to eliminate federal income tax on up to half of your adjusted gross income. You may also be eligible for state income tax savings.
Appreciated Securities – Using appreciated securities can provide you with additional tax savings since you do not realize long-term capital gains. The value at the time of the donation, rather than your cost, may be reported as an itemized deduction. Appreciated securities include stocks, bonds and mutual funds, among others.
Retirement plans – Qualified Distributions from IRAs are encouraged. Donors who are 70 ½ years or older can make charitable gifts directly from their Individual Retirement Accounts (IRAs) under a new law passed in December 2015. For more details please talk to your financial advisor.
Endowments – These funds are often used to create a memorial or a legacy gift that will provide a source of support to Trinity in perpetuity. The core of the fund cannot be touched; only the interest can be spent.
You are encouraged to speak to your financial advisor for your particular situation. The Texas Presbyterian Foundation is also available to answer your questions regarding these gift plans. For assistance or more information contact TPF at 214-522-3155.
Dr. Graham holds an MBA in finance and has over 20 years’ experience in funds development, with a specialty in planned giving, with Trinity University, Lyon College and Presbyterian Border Ministry.
Note about Year End Giving Statements
Interim Giving Statements were sent out on December 12, 2018 via email with a link titled, “View your giving statement.” Please visit this link from your desktop or laptop, not a mobile device, to view a PDF of your Interim Giving Statement through December 12, 2018.
Final Year End Giving Statements will be sent in January using this same process. A hard copy of the Interim Giving Statement and/or the Year End Giving Statement may be provided by request. If you have questions or concerns, please contact Treasurer Bud Ward.