If you’re planning how to pay your pledge for 2017-18, here are two ways to fulfill your pledge and SAVE ON TAXES!
- Give appreciated securities (stocks or mutual funds). When you transfer securities DIRECTLY to the church, you avoid capital gains tax, and you are able to give the appreciated amount as a gift. If you sell the securities yourself and give the proceeds to the church, you lose this tax benefit.
- Donate part or all of your RMD. If you are older than 70 ½, and you have an IRA, you must take a “required minimum distribution” from your IRA each year. This is taxable income. However, under current tax law, you are allowed to use part or all of your RMD as a charitable gift. That portion will not be taxed.
Important info about a gift from your IRA: The IRS does not allow you to avoid taxes on your RMD and also deduct the gift as a charitable donation. Only one or the other. Therefore, this option is most useful for people who do NOT itemize on their tax return. Please contact Cherry Sokoloski (below) for more information, and also consult with your CPA or other tax advisor.
If you plan to pursue one of these options, please let Cherry or the church office know so we can explain the process.
Remember, to receive the tax benefit, you must transfer securities directly to the church, instead of selling them first yourself. The church will then sell the securities. In the case of a gift from your IRA, it can be cash or securities, but again, it must be transferred directly from the IRA to the church.
Your friendly coordinator for gifted securities,
Cherry Sokoloski: 970-484-5705 or LCSoko@Q.com Church office: 970-493-5906