Stock Donation
If you donate stock that has increased in value since you bought it more than one year ago–and if you itemize deductions–you can take a charitable deduction for the stock’s fair market value on the day you give it away. You’ll also avoid capital gains taxes on the increase. But don’t wait until the last moment. If you are interested in donating stock to Faith before year-end and have questions, please contact Nancy Smith or the church office. We would be happy to assist you. Forms are in the office.
Tax-Wise Donation
For retired members, if you donate a portion of your RMD to Faith through a “qualified charitable distribution,” you do not need to itemize your deductions to take advantage of that tax move. Note that the money has to go straight from your IRA or other qualified retirement plan to the charity, and then it doesn’t show up on your taxes. That means it will not interfere with your Social Security taxes or Medicare premiums. A word of caution: a qualified charitable contribution must be made directly to a qualifying charity, such as Faith Lutheran Church, so donations to a donor-advised fund do not count. The funds also have to move directly from your investment account to the charity.
Reminder: All donations must be in the church office or postmarked by 12/31/19 to be credited in your charitable contributions for 2019.