FEATURE

It’s Not Too Late, But Time is Running Out

Did you know donating shares of stock or mutual funds to the OPC could provide significant tax benefits while preserving cash?

When giving to the church, most people immediately think of writing a check. But this may be a great time to donate shares of appreciated stocks or mutual funds as financial markets have risen significantly this year. A direct transfer of shares of stock or a mutual fund to your church or the OPC will help you avoid paying substantial capital gains tax while preserving cash. Additionally, you may be able to claim a tax deduction for the appreciated value. Donating appreciated securities takes a little more planning than donating cash so be sure to investigate specific deadlines ahead of time.

Don’t forget about RMDs if you are 73 or older. The IRS mandates you take required minimum distributions (RMD) from qualified retirement plans like traditional IRAs. RMDs kick in once you reach age 73. A great strategy to help you avoid paying taxes on your RMD is to make a qualified charitable distribution, or QCD. You must be at least 70 ½ to be eligible to make a QCD.

A QCD is a direct transfer of funds from your IRA made payable to a qualified charity. QCDs can be counted toward satisfying your RMD for the year and is not treated as income, reducing your income tax burden. You can donate up to $105,000, and if you file taxes jointly, your spouse can make a QCD of up to $105,000 from their IRA as well. It is important to note the QCD must be received by the charity before the end of the tax year, so careful planning is important.

For more information please email planned.giving@opc.org