End of Year Giving Strategies for 2017
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.
Timing for Year-End Giving
- First Presbyterian Church of Orlando will be closed Monday, December 25 and Tuesday, December 26 for the Christmas holiday, and January 1, 2018 for the New Year's holiday.
- Delivered gifts received on or before 12/31 will be recorded as a 2017 contribution.
- Mailed gifts with a postmark of 12/31 or earlier will be treated as a 2017 contribution regardless of the delivery date.
- Online gifts initiated prior to midnight 12/31 will be recorded as a 2017 contribution.
- So, if someone arrives with a check dated 12/31/2017 on Tuesday, Jan 2nd or later, we will gladly accept, but it will be recorded as a 2018 contribution for tax purposes.
Timing for Asset-Based Giving
If you prefer to donate an asset, like appreciated stock or mutual funds, try to plan a little ahead of prior years and make your donation by 12/29/17. Brokerages are closed on the weekend, and any giving transfer on 12/31/2017 might be recorded on the next business day, or a 2018 tax date.
Giving appreciated stock or mutual funds
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 12/29.
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 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. We are processing stock gifts through a new investment firm, so please confirm our current transfer instructions prior to making your gift.
Direct Charitable IRA Distribution
Great news! The Charitable IRA rollover provision was made permanent in December 2015! You can now plan your IRA gifting strategy with confidence knowing that this tax advantage is in place.
Giving Appreciated Real Estate
If you own real estate that has appreciated in value, you can contribute the real estate to First Presbyterian Church of Orlando without selling it. Under Federal tax law, if you have held the real estate for at lease a year, you may be entitled to deduct the full value of the property and never have to pay tax on the gain. This can be much more advantageous than selling the property (which would create a taxable gain) and donating the proceeds from the sale. Certain due diligence steps are required before First Pres can accept gifts of property, and the transfer would need to be completed by December 27 in order to qualify for a tax deduction this year.
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.