"For where your treasure is, there your heart will be also."
Why we give
God is generous and so he calls us to be as well. What we do with what God has given us shows the world where our hearts are at and helps proclaim the gospel. We want to glorify God with every area of our lives, and that includes what we do with our finances.
We give because He gave first.
Many people consider monetary gifts (cash) their only giving option. Often they are unaware of the diverse opportunities available to make tax-smart and non-cash gifts. Here are some gift options:
Gifts of appreciated stock are easy to give. You earn a charitable deduction for the fair-market value. Plus, no capital gains are owed on such a gift; either by the donor nor a qualified charitable recipient upon redemption.
Unencumbered property can easily be transferred by deed. Plus, no capital gains taxes are owed on such a gift; either by the donor, nor a qualified charitable recipient, upon sale.
Donor Advised Fund
Should you desire a way to minimize income taxes in a given tax calendar year but wish to control the timing of a charitable donation to a qualifying charity, even defer it, a Donor Advised Fund (DAF) may fit your situation. A contribution into a DAF is a way to avoid owing capital gains tax that could be generated on otherwise redeemed appreciated assets intended to be gifted. With a DAF you are creating a flexible giving fund, much like a foundation, but without the complexity and cost.
Charitable Distribution from IRAs
Current tax regulation allows for IRA owners, age 70 ½ or older, to avoid income taxes on IRA distributions, if those distributions are directed towards qualifying charities, bypassing the account owner. This can be a great benefit for those who are taking forced RMD’s and yet don’t need the funds. IRA owners are able to gift up to $100,000 each calendar year and avoid the taxation on the distribution.