For those 70 and a half years old or older the gifting of one’s IRA Minimum Required Distribution to Prince of Peace can be a wonderful way to make a significant difference. In recent years this has become a very attractive means of philanthropy. This strategy provides a tax benefit even when the standard deduction is taken.

(Prior to exercising this option please consult with your financial advisor concerning current rules on IRA gifting)

Some people have accumulated cash in insurance policies, which they give to the church. Others purchase new policies with the church as a beneficiary or name the church beneficiary of an existing policy. Donors may also give the entire policy as an outright gift. The church may wish to accept the policy ownership and continue to make premium payments in order to collect the proceeds at the time of the donor’s death. Many donors may find their insurance policies, which were purchased for estate taxes, may not be needed and may be an excellent charitable gift.

The donor funds a gift annuity with an appreciated asset and gives it to the church; in turn the church distributes a defined period of income to the donor (and/or spouse). This is an excellent way to convert a substantially appreciated asset into an income source for the donor.

This strategy means making larger charitable contributions in a single year to be able to itemize in that year and then plan to take the standard deduction the following year(s). A Donor Advised Fund works well in this context because the charitable deduction is received I the year that a contribution is made into the account and not in the year when the grant is made out of the account. This tax planning strategy allows a church member to make a large contribution into a donor advised fund for tax planning purposes while then making annual grants out of the fund to the church. It is important to note that a donor advised fund can’t be made to fulfill a formal pledge.

A gift of investment assets that have appreciated in value is one of the most common gifting strategies. The asset should, in relative terms, be “substantially appreciated” if the giver wishes to receive tax benefits* as a result of the charitable gift.

Funding charitable giving with appreciated stocks or bonds can be very advantageous to both the donor and the church. The donor will avoid paying any capital gains taxes* while receiving a full value charitable deduction, and the church will receive a very liquid asset. To claim all these benefits, the stocks/bonds must be transferred to the church rather than selling the stocks/bonds and donating the proceeds, which then turns the gift into an ordinary cash gift. Your financial advisor can advise you about the best way to make the transfer.