As the year draws to a close, many of us are considering how to help the church through charitable giving. Over two years ago, Schweitzer Church formed a foundation for charitable gifts for endowment and restricted funds to finance programs, buildings, scholarships, and other projects, into the future.
There are many types of giving with different purposes and different ways of giving. The following are some ideas, but certainly not all, that are available. Depending on your circumstances, you should talk to your CPA or attorney about what is right for you and your family.
WHAT KIND OF CHARITABLE GIFTS COULD YOU CONSIDER?
- A gift to help with building projects such as remodeling the building, adding on, refurbishing the equipment, etc. The gift could be endowed so that only the earnings could be used to comply with the donor’s wishes. The principal would be invested in perpetuity. The gift could also be restricted so that it can be used as the stated need arises.
- A gift to work with programs such as Flourish, children’s programs, the food pantry, etc. Again the gift could be restricted or endowed.
- A gift to fund scholarships for clergy or seminary students (restricted or endowed). Usually, scholarships are endowed to help students for many years.
“Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.”
2 Corinthians 9:7
WHAT KIND OF VEHICLES COULD BE USED?
- Cash is always accepted!
- You can make a gift of appreciated stock that you may have held for a long time. If you sell the stock and donate the money, you must pay capital gains from selling the stock. If you donate the stock, you get a charitable deduction for the present value of the stock and pay no capital gains.
- You can make a gift out of your IRA or 401(k) to satisfy your “Required Minimum Distribution” of up to $105,000 if you are at least 73 years old. The gift amounts to a charity are not included in your taxable income, but you can’t deduct the charitable gift.
- There are many other ways to make charitable gifts that you should talk to your advisors about. CRAT – charitable remainder annuity trust. CRUT – charitable remainder unitrust. DAF – donor-advised fund where the charity manages the money. QCD – qualified charitable distribution is taken directly from your IRA. The CRATs and CRUTs can provide you with a greater return than the dividends from stocks you own.
- You can gift real estate of any kind (personal residence, farm, commercial, land, etc). You receive a charitable deduction and minimize or eliminate capital gains tax. You escape property maintenance, property taxes, insurance, etc.
- Through a will, you can transfer assets to a charity upon your death. This could reduce estate taxes upon your death.
- You can take out a life insurance policy and make the charity your beneficiary to fund your charitable bequest upon your passing.
Please talk to one of our Foundation Board members, your CPA, or attorneys with questions about which vehicle is best for you, your family, and Schweitzer Church.
