As the leaves fall and the weather grows colder, our thoughts and plans turn toward the holiday season. Our finance committees know to expect an uptick in giving and our faithful clergy, lay people and congregants, know that part of our holiday planning often includes a year end charitable gift. These gifts can make all the difference in supporting mission work, the annual budget and future planning. 

In preparation for the season of giving, we consulted the Foundation’s Finance Committee Chair, Bert Bennett, a long-time CPA and member of Porterfield Methodist Church in Albany. His perspective on giving, combined with his knowledge of tax law and liabilities, emphasizes giving efficiently and giving to the most of your ability. He says, “The fact of the matter is, the more you’re able to reduce your taxable income through charitable giving, the more you are able to put towards mission work.” Bennett appreciates that his assets, hard-earned and accumulated throughout his lifetime, are not really his at all. “It is my calling to give back to the church,” he says, “and I want to do that in the best way possible.”

For those 72.5 and above, your annual Required Minimum Distribution (RMD) is important to factor into your year-end financials and could be used as a potential donation for your church. Directing your RMD funds to a charitable institution can decrease your tax burden by lowering your taxable income and could even lower how much of your social security income is subject to tax as well. 

The most important thing to understand is that giving directly to a charitable organization from your invested assets, rather than withdrawing them to your account before donating, could allow you to decrease your taxable income and may decrease your annual tax burden overall. When appreciated stocks are donated from an investment account where withdrawals would otherwise be subject to capital gains taxes, a donation directly to a charitable institution could avoid capital gains altogether.  

While each person’s tax liability is unique, consulting with your CPA about year-end giving and the implications of those gifts could make an important impact on the charitable institutions you care about most. 

At the Foundation, our purpose is your mission and we know that a strong church depends on the faithful financial support of its members. If we can assist you in your plan for end of year giving, please let us know!

To donate directly to the Georgia United Methodist Foundation, visit our Donate page.