WINCHESTER, Va. (BP) — The Evangelical Council for Financial Accountability (www.ecfa.org) is encouraging donors to churches and other faith-based nonprofits to utilize two special opportunities to give to charities this December while also lowering their 2014 taxes.
The first opportunity involves securities that have appreciated over the course of at least a year and a day; the second relates to the so-called “charitable IRA rollover.”
With the stock market recording 49 record highs this year, many taxpayers’ securities have appreciated significantly. Giving appreciated securities held long-term at least a year and a day to a qualified charity gives taxpayers a Schedule A charitable deduction for the market value of the stock.
Additionally, neither the taxpayer nor the charity has to pay capital gains taxes when the stock is sold. That combination can result in a bigger deduction for the donor and a larger gift for the charity.
Secondly, Congress recently approved a bill reinstating the charitable IRA rollover, which President Obama indicated he will sign into law. Givers will only have until Dec. 31 to take advantage of this temporary provision.
Under the law, taxpayers age 70 1/2 or older can give up to $100,000 from their IRAs or Roth IRAs to qualifying charities without having to pay income tax in 2014 on the withdrawn amount.
“Time is of the essence for these special giving opportunities,” said Dan Busby, ECFA’s president. “Generous gifts of appreciated stock or charitable IRA rollovers can make a significant difference for the many worthy ministries striving to be good stewards of their resources.”
For a Baptist Press story on year-end giving, “Informed, biblically-based giving advised,” click here .