How Can You Be Strategic in Your Charitable Giving?

The primary goal in charitable giving is to help make the world a better place. Being strategic in your giving may provide you with additional tax-saving benefits. The following information may help you develop a giving strategy to support Lovely Lane United Methodist Church and our mission.

Donation of cash is an easy way for you to make a gift

Benefits of gifts of cash

    • You can make an immediate impact on our mission
    • You can take a charitable income tax deduction if you itemize deductions using Schedule A (not applicable for Standard Deduction tax filers)

How to make a gift of Cash/Check

    • Sunday Offering
    • Give by Mail
    • Text to Give (319) 220-3050 and follow the instructions
    • Online giving by Credit/Debit Card or EFT (electronic funds transfer)
      One-time gift or set up a recurring gift

Donating appreciated securities, including stocks or bonds

Benefits of gifts of stocks and bonds

    • Avoid paying capital gains on the sale of appreciated securities
    • Receive a charitable income tax deduction if you itemize using Schedule A (not applicable for Standard Deduction tax filers)

How to make a gift of stocks and bonds

    • Contact Tammy Martin, Financial Secretary for Lovely Lane
    • Lovely Lane United Methodist Church is tax-exempt, so the gifted securities could be sold by Lovely Lane without incurring capital gains tax, thus more funds available to support the church than if you sold the securities yourself

Donating from your IRA

If you are age 70 1/2 or older and have an IRA consider a Qualified Charitable Distribution (QCD)

Benefits of a QCD Qualified Charitable Distribution

    • Lets you gift up to $105,000 for 2024 from your IRA to qualifying charities
    • QCD counts towards satisfying your Required Minimum Distribution (RMD) without increasing your taxable income
    • QCD are allowed in excess of your (RMD) Required Minimum Distribution and in years RMD is not required
    • You can take advantage even if you don’t itemize. With a QCD you can still take the standard deduction if you don’t itemize, however if you do itemize using (Schedule A) No Deduction is allowed since the distribution is not taxable. Normally distributions from a Traditional IRA are taxable when received. With a QCD however, these distributions become tax-free as long as they’re paid directly from the IRA to a qualifying charitable organization.

How to make a QCD Qualified Charitable Deduction

    •  Contact your Tax Adviser and/or Financial Advisor to determine if a QCD is an appropriate gifting strategy to consider for you.
    • Contact your Traditional IRA Trustee/Plan Administrator
    • QCDs must be made directly by the trustee of the IRA to the charity. An IRA distribution, such as an electronic payment made directly to the IRA owner, does not count as a QCD. Likewise, a check made payable to the IRA owner is not a QCD.

Estate planning charitable bequest

You can leave a gift to Lovely Lane United Methodist Church that will make a lasting impact.

Benefits of a bequest

    • Receive a potential estate tax savings from an estate tax deduction
    • Avoid potential estate tax on retirement assets
    • Your heirs would avoid income tax on any retirement assets donated that were funded on a pre-tax basis

How to leave a bequest to Lovey Lane

    • With the help of an attorney you can include a bequest to Lovely Lane in your will or revocable trust as part of your estate plan
    • Designate Lovely Lane United Methodist Church as a full, partial or contingent beneficiary of your retirement account (IRA, 401K, 403(b) or pension)
    • Name Lovely Lane as a full, partial or contingent beneficiary of your life insurance policy.

The information provided was based on various sources that are considered reliable, however the accuracy and completeness are not guaranteed. Work with your tax adviser or financial advisor to determine the strategies that may be right for you.

Lovely Lane Finance Committee