Year End Giving

by | Jan 12, 2023 | Uncategorized

November

How quickly the end of the calendar year comes. Already we are getting questions about the wisest way to make a year-end gift.

Two ways you might want to think about for your year-end giving are:

1. A Qualified Charitable Distribution (QCD) from your IRA

2. A gift of appreciated stock

Anyone who has a traditional IRA and is 70.5 or older can make a Qualified Charitable Distribution from their IRA to your church, to your fund at Desert Southwest United Methodist Foundation, or to any qualified charity. Some things to know:

  • Have your IRA custodian send the check directly to the church or charity, not you.
  • You can use all or part of your Required Minimum Distribution to make the gift – up to $100,000.
  • The advantage to you is not paying income tax on the distribution to charity.

Gifts of stock are popular because you, as the donor, are eligible to claim a charitable income tax deduction for the full fair market value. Some things to know:

  • You should have owned the stock more than one year.
  • The stock should be worth more than you paid for it.
  • You should be able to use the income tax deduction if you itemize your income tax deductions instead of taking the standard deduction.

As always, your own advisors have the best insight into what works best for your wise year-end giving; meanwhile, if we can offer you or your advisors any information about making a gift through DSUMF, we are happy to help.

December

‘Tis the season, as the saying goes, and you are probably thinking about making your final gifts for the calendar year. As mentioned last month, two popular ways to give at year-end are making a gift of appreciated stock or sending a Qualified Charitable Distribution from your IRA. If making a gift of stock to your church, DSUMF can handle that for you at no cost to the church. And, of course, it’s always easy to send a check to your fund with DSUMF, your church, or another favorite organization.

A way you might want to consider giving is by setting up a Donor Advised Fund with DSUMF. A Donor Advised Fund (DAF) is almost like having your own charitable foundation. I like to think of a DAF with the three G’s: Give. Grow. Grant.

  • Give cash or stock (at least $10,000) to set up the fund at no cost and minimal paperwork with DSUMF.
  • Grow the fund as DSUMF invests it in Westpath’s Balanced Fund. Obviously, growth is not guaranteed, as the markets are unpredictable.
  • Grant funds to your church or other favorite nonprofits. As the Donor Advisor to your fund, you determine the amount ($500 minimum) and timetable for making your grant recommendations. You can even ask that the grant distribution be made anonymously if you prefer the recipient organization not to know it came from you.

A Donor Advised Fund is almost like having your own charitable foundation. DSUMF handles everything for you. And it is a great way to work together as a family on your philanthropic goals.

As always, your own advisors have the best insight into what works best for your wise year-end giving; meanwhile, if we can offer you or your advisors any information about making a gift through DSUMF, or setting up your own Donor Advised Fund, we are happy to help.