How to Give More WITHOUT Giving More

Many pastors don’t like to ask their congregations to give more money and if warned ahead of time, some members will use that excuse to take the Sunday off. Why not? Many of us have already given so much. Although we may or may not want to increase our giving, we just don’t know how to get more from the proverbial turnip.

Congress and the IRS have made it possible for us to increase giving without opening up our wallets more. Two programs exist right now that allow us to avoid paying income tax on certain types of income that can directly benefit charitable giving:  1. The IRA Charitable Rollover, and 2. Donation of appreciated stocks or securities.

1.  The IRA Charitable Rollover is a law that will expire at the end of 2013. If you are 70 ½ years old (or older), and you have an IRA – you call “rollover” up to $100,000 directly to charity without claiming it as income. That saves you taxes, especially if you don’t itemize any more. AND whatever you decide to “rollover” will count towards the Required Minimum Distribution (RMD). Click here to learn more. 

Here is an example:    Without IRA Rollover                    Using the IRA Rollover

     Withdraw:                           $10,000                                                       $10,000

     Tax*:                                        $2,500                                                        $         0

     Your Church Receives:      $7,500                                                       $10,000

This program expires December 31^st, 2013 (unless Congress acts again).

2.  Donations of appreciated securities have long been available for increasing generosity and simultaneously saving on the tax bill. The Foundation has a brokerage account in place to serve you and your favorite United Methodist Charity or Church. Last year, we processed more than $35,000 of these gifts! Click here to learn more. 

Here is an example:   Sell security first                         Direct donation

                                            then donate cash                              of security

    Original Cost:                  $1,000                                                       $1,000

    Today it is worth:        $20,000                                                     $20,000

    Taxable Income           $19,000                                                               $0

    Tax*:                                  $4,750                                                               $0(You may even save more!)

    Your Church Receives:   $15,250                                                $20,000

This program has no expiration date.

*The tax savings was based on a 25% income tax rate. This is not intended to be tax or financial planning advice. For details about how these tools can help you, please consult your own CPA, Tax Professional or Financial Planner.

I wanted to share this exciting news with you so that you can take advantage of these opportunities to help grow God’s kingdom in your own church and communities of faith.

                                  In God’s Service,  Kristi Kinnison