by Lisa P. Sierk, Philanthropic Advisor, Director of Endowment Ministries
As you plan for your year-end charitable contributions, please keep in mind that there are several options for you to make a difference and help further the ministries of Rocky River United Methodist Church (RRUMC).
If you are 70 ½ or older, a qualified charitable distribution (QCD) from your IRA is a way you can help continue the work of the Church. An IRA holder aged 70 ½ or over can transfer up to $100,000 a year to a qualified charity or organization such as RRUMC.
Normally, IRA distributions are taxable when received. However, with a QCD, the distribution is tax-free provided it is paid directly to the charity or qualifying organization. Additionally, QCDs count toward an IRA owner’s required minimum distribution (RMD) for the year if the owner is at least 72 years old.
If you are interested in helping to further the mission of RRUMC through a QCD, contact your IRA plan administrator to make the transfer from your IRA directly to RRUMC. The amount transferred will not be taxable to you. Likewise, you cannot take a charitable tax deduction for the QCD.
Another great way to make a difference while also potentially enjoying tax benefits is by donating appreciated stock to RRUMC. By donating appreciated stock that has been held for at least one year to RRUMC, you may be eligible for an income tax deduction based on the fair market value of the stock donated if you itemize deductions on Schedule A. Even if you do not itemize, by transferring the appreciated stock directly to RRUMC, you can avoid the capital gains taxes that would apply if you sold the shares. RRUMC does not have to pay capital gains tax on the gifted stock, so both you and RRUMC benefit from your generosity.