LEGACY GIVING


Planned Gifts are easy to make and represent a present-day commitment to the long-term future. You can make a lasting impact on our church while achieving tax relief and preserving your assets for the next generation. The option that is best for you will depend on your circumstances. 


If you would like to speak to a member of FPC’s Legacy Giving Committee to discuss options, please contact the church office and we will have someone be in touch.

OPTIONS FOR GIVING

Qualified Charitable Distributions (QCDs)

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your IRA, payable to a qualified charity. QCDs can be counted toward satisfying your Required Minimum Distributions (RMDs) for the year if certain rules are met.

 

In addition to the benefits of giving to charity, a QCD excludes the amount donated from your taxable income. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare. Funds distributed directly to you in which you direct to the charity do not qualify as a QCD.

 

QCD requirements:

  • You must be 70 ½ or older to make a QCD.
  • The maximum annual amount that can qualify for a QCD is $100,000.
  • Funds must be distributed from your IRA by your RMD deadline (usually Dec. 31.)
  • Contributing to an IRA may reduce the QCD amount you can deduct.
  • Certain charities may not qualify for QCDs. Consult with your tax advisor or the charity for its qualification status.

From the Thornhill Times

 


Deduction of Charitable Contributions

The deduction of charitable contributions by nonitemizers has expired along with the enhanced deduction of itemized charitable contributions. However, considering charitable contributions for the year remains a viable tax strategy for itemizers, including bunching strategies in which charitable contributions are bunched into every other year in order to exceed the standard deduction in the year that charitable deductions are claimed. Donor-advised funds can assist in the strategy by making it easier to spread out the actual contribution to a particular charity. Donating appreciated stock continues to be a viable strategy for avoiding tax on the appreciated amount.


Qualified charitable distributions from IRAs are available for taxpayers age 70 ½ or older up to $100,000 per year. This removes the distribution from adjusted gross income. A new law change also permits a one-time distribution of up to $50,000 of the qualified charitable distribution to a dual beneficiary trust, such as a charitable remainder trust.