Investing with Faith / Jolinda Moore

Easy-to-implement gift options can offer tax savings

During challenging times, people find creative ways to meet needs and goals—ways to reassert control and find safety in a world full of uncertainty. As we enter a new year, it is a great time to reflect on how you may have responded to supporting the charitable needs of the Church as a result of the pandemic. So many have given generously, going above and beyond their typical giving to fill the void that job loss has created for many.

As you consider ways in which to give, the following are three easy-to-implement gift options to consider which likely offer tax savings. Each of the gifts that follow can be used to support your parish, an archdiocesan Catholic school or an archdiocesan ministry.

—Stock: When compared to making a gift of cash, a gift of appreciated stock provides a very important benefit: you pay no capital gains tax on the appreciated value of the stock. In addition, when you itemize your tax return, the gift qualifies for a deduction equal to the stock’s current value, even though no tax has been paid on the appreciation. Remember, a gift of stock must be a direct transfer of the stock to the charity to avoid capital gains tax. Do not sell the stock, but instead contact our office to discuss the steps needed to transfer the funds.

—Donor-advised funds: Donor-advised funds have become an increasingly popular way to realize personal philanthropic goals in recent years. If you have a donor-advised fund account, we invite you to remember us and the ways you can support the Church at this important time. The archdiocesan Catholic Community Foundation (CCF) serves as a single point of contact for moving monies to your parish, school or an archdiocesan ministry area. If you do not have a donor-advised fund account, we can also assist in creating one. With a gift of $5,000 or more, the CCF has the ability and expertise to manage your donor-advised fund that is invested using socially responsible investment guidelines as outlined by the U.S. Conference of Catholic Bishops.

—IRA: If you are an IRA owner age 70½ or older, making a gift through a qualified charitable distribution (QCD) is an option worth considering. While there is no tax deduction, the amount transferred is excluded from your income for federal tax purposes—you owe no tax on the transfer! The amount you give counts toward your required minimum distribution (RMD) when one is due. (Under the SECURE Act passed in 2019, RMD’s must begin at age 72.)

You are always encouraged to check with your advisors and account representatives to ensure that your personal and charitable objectives are being met.

The CCF is glad to assist you in making a meaningful contribution to the Church. More information on these types of gifts, including a simplified process for notifying us of such gifts is available at www.archindy.org/CCF. Questions can be e-mailed to ccf@archindy.org, and calls can be directed to 317-236-1482.
 

(Jolinda Moore serves as executive director of the archdiocesan Office of Stewardship and Development. Contact her at 317-236-1462 or the office at www.archindy.org/CCF.) †