Year-end giving: Insights to help you and your church be prepared

Churches and nonprofits receive 30% of annual donations in December — including 10% in the final three days of the year, research shows.

It’s a daunting reality. The good news is that the Foundation is here to be a resource for clergy and congregations alike. Here are a few things to keep in mind for stewardship practices related to gifts of appreciated assets, transfers of stock and other financial contributions.

Gifting stock and appreciated securities

Gifts of stock (held for more than a year) are tax deductible just like cash gifts, with the added bonus of avoiding capital gains tax. The Foundation facilitates these gifts AT NO COST as a courtesy to United Methodists in the Western North Carolina Conference. Most gifts are unrestricted. In some cases, donors designate their gifts toward:

• The outstanding principal on their church’s UMF Development Fund loan;
• An existing investment account held by their church and managed by the Foundation;
• Creating a new endowment account to benefit their church.

All stock donations must be received no later than December 31 to be considered a contribution for 2024.

Click here to see instructions for gifting stock with the Foundation. Please note that we ask all donors to provide a letter of instruction that indicates where gifts should be sent. Donors will receive an acknowledgement letter for their tax purposes after funds have been dispersed.

For assistance with a stock transfer, contact Amanda Goedert at 704-817-3990, ext. 1501 or agoedert@umfwnc.org.

Required Minimum Distributions 

Church members age 72+ are required to draw a minimum distribution (known as RMD) from retirement accounts to avoid receiving that money as income and having to pay taxes. They can designate an amount for a mutually beneficial tax-advantaged gift.

To qualify for the tax credit, you must have your retirement plan administrator direct the distribution DIRECTLY to your church; it cannot pass through your hands or it will trigger an income taxable event for you.

For assistance with this gift transaction, contact Susan Cothern at 888-450-1956, ext. 1507 or scothern@umfwnc.org.

Donor Advised Funds

For a church member who wants more time to decide on the particulars of a gift, opening a Donor Advised Fund (DAF) with the Foundation is a great option. The minimum amount is $1,000, much less than many other institutions.

Contributions are deductible in the year made, while subsequent distributions to charities can be made over time, without the pressure of tax deadlines. Additionally, earnings in the fund can grow tax-free.

For assistance with DAFs, contact A.J. Thomas at 888-450-1956, ext. 1509 or ajthomas@umfwnc.org.

Resources from the Foundation

Set up a Give Online page for your church on the Foundation’s online giving portal. Your donors will be able to make gifts to funds that your church has invested with the Foundation — without having to write a check or mail a letter. Our team sends the donor an acknowledgement notice, the funds go directly into your account and we notify you of the gift.

Click here for a sample brochure to inform church members about end-of-year giving. The brochure can be customized with the name of your church.

This article is intended for general informational purposes and is not a source of legal or tax advice.  Individuals should consult professional advisors regarding all appropriate matters.