Charitable donations can do more than help your church, they can save you a lot of money come tax time. Whether you are looking to give $50 or $5,000 there are a slew of ways to maximize the gift of giving. The benefits primarily center around tax deductions. You are able to take dollar-for-dollar deductions. Donate Appreciated Stock to Avoid Capital Gains In addition to getting dollar-for-dollar deductions for your donations, people who own appreciated stock that they have held for longer than one year can donate the shares to their church to avoid any long-term capital gains taxes. Maybe you bought a stock ten years ago for $500 and now it’s worth $1,000. Normally if you sell you are subject to the long-term capital gains tax on the $500 gain. If you give directly to your church you’ll get a charitable deduction of $1,000 for the fair market value and avoid the long-term capital gains tax. Donate from your IRA if you are over 70 and-a-half Since the IRS requires everybody over 70½ to take money out of their IRA and retirement plan, a popular strategy over the last few years has been to give that withdrawn money to the church. By doing that you get the deduction from your charitable donation and don’t have to worry about the tax implications. Source: Clergy Financial Resources
Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations.< Back
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101