The church is grateful that you would consider us as part of your charitable giving strategy at year-end. The ministry we accomplish throughout the year on our city block and around the world could not continue without your faithful gifts and generous spirit.
As you consider your own stewardship this year, here are some basic strategies that may improve the income tax benefit you receive for your year-end gifts.
First Presbyterian Church of Orlando will be closed December 25 and December 28 for the Christmas holiday, and January 1, 2021 for the New Year's holiday.
Mailed gifts postmarked 12/31 or earlier will be treated as a 2020 contribution regardless of the delivery date.
Online gifts initiated prior to midnight 12/31 will be recorded as a 2020 contribution.
If an individual delivers a check dated 12/31/2020 on Sunday, Jan 3rd or later, we will gladly accept, but it will be recorded as a 2021 contribution for tax purposes.
If you prefer to donate an asset, like appreciated stock or mutual funds, try to make your donation by 12/24/20. Any asset transfer in process on 12/31/20 may be recorded on the next business day, or a 2021 tax date.
Donating stock may be a smarter approach. You may donate the stock directly to church, or you may sell the stock and donate the proceeds. It all depends on whether the stock has increased or decreased in value and how long you have owned the stock
If you own stock in a publicly-traded company that has appreciated in value, you can contribute shares of the stock to First Presbyterian Church of Orlando without selling it. Under Federal tax law, if you have held the stock for at least a year, you may be entitled to deduct the full value of the stock and never have to pay tax on the gain. This can be much more advantageous than selling the stock (which would create taxable gain) and donating the proceeds from the sale. The transfer would need to be completed by December 31 in order to qualify for a tax deduction this year. Because of office and bank closures, we encourage you to finalize it by 12/24.
You can donate appreciated securities – stock, mutual funds, bonds, ADRs (American Depository Receipts), and other ‘property’ – and oftentimes receive a greater tax benefit than you would receive as compared to selling the appreciated securities and then donating cash.
Make sure to check with a tax professional before initiating any transfer of securities.
Please contact Tom Levesque, Director of Finance at 407.423.3441 or via tlevesque@fpco.org. if you are considering this kind of gift so that we can understand how you would like this gift to be utilized and send you a tax receipt in a timely manner. Please confirm our current transfer instructions prior to making your gift.
The Charitable IRA rollover provision has become a great way to maximize your giving after the new tax laws came into effect.
Smart, tax-efficient giving for anytime of the year!
The Charitable IRA provision, allowing individuals with IRAs to make direct charitable transfers totaling up to $100,000 per year has become much more popular in 2018 and 2019 as a result of recent tax law changes. We’ve seen quite a number of members begin giving to First Pres in this way this past year. The doubling of the standard deduction under the provisions of the new tax law effective in 2018 will preclude many from itemizing their deductions, including charitable gifts.
With very few individuals expected to itemize (some estimates say around 10% of filers), the income tax deduction for contributions to charities will be lost for many people. We don’t give to God’s work because of the tax-benefit, but at the same time we want to steward our resources by giving in the most tax advantaged way possible.
So, for any charitably inclined retiree that is 70 ½ or older that owns an IRA that is subject to required minimum distributions, a Qualified Charitable Distribution (QCD) from their IRA works very well. A QCD IRA gift has two advantages:
1) the distribution counts towards satisfying the required minimum distribution;
2) the distribution is excluded from taxable income.
Some IRA owners have check writing privileges on their IRA account and can make a gift that way (as long as the check clearly indicates an IRA account). Others can make an IRA QCD in a direct transfer from their account to First Presbyterian Church of Orlando. The company holding your IRA or your financial advisor will be able to guide you. If you have any questions, feel free to contact our Director of Finance, Tom Levesque at 407.423.3441 or via tlevesque@fpco.org.
Strategy tips and advice courtesy of Batts Morrison Wales & Lee, P.A. nonprofit CPA.
If you have any questions regarding stewardship or any other tax strategy related to your tithe, please call our Director of Finance, Tom Levesque at 407.423.3441.
