Strategies for Year-End Giving

Strategies for Year-End Giving

With the Christmas season upon us and the end of 2017 quickly approaching, your church or agency may be seeing an increase in the amount of giving taking place among your donors. Leaders within your church or agency also may have some donors approaching them for advice when it comes to choosing the best strategy for meeting their year-end giving objectives. So what are some options out there for donors looking for a creative way to make a year-end gift? The following are seven strategies for giving that donors may want to consider:

•  Cash Gifts – An outright cash donation made by the donor to his or her ministry of choice. The full amount of a cash gift qualifies the donor for a charitable income tax deduction.

•  Appreciated Assets – Appreciated assets can be gifted to an organization. This provides the advantage to the donor that he/she can avoid capital gain tax on these assets and receive a tax deduction for the fair market value of the assets.

•  Life Income Gifts – Life-Income Gifts provide regular lifetime income to the donor, or other beneficiaries, while ultimately providing a gift to the United Methodist ministry of the donor’s choice. A charitable gift annuity is one popular type of life income gift and involves a simple contract that provides flexible guaranteed income, a gift to the donor’s charity, and tax benefits.

•  Consider Unneeded Life Insurance - Policies for which the purpose no longer exists may mitigate the need for the insurance.

•  IRA Charitable Rollover - Donors can directly donate the annual required minimum distribution to their favorite qualified charity and avoid tax liability on the RMD.

•  Create a Donor Advised Fund (DAF) - A donor‐advised fund (DAF) allows donors to make contributions to charity by establishing a fund and then making recommendations on their own timetable for distributing the funds to qualified charitable organizations. The donor may become eligible to take an immediate tax deduction.

•  Express Your Faith - Year-end giving is a great opportunity to express your faith during the Christmas season.  A time to give in gratitude for God’s greatest gift.  Expressions of faith can also be expressed in a donor’s will through bequests.  These types of legacy gifts can have a huge impact on the ministry of Christ in the life of a congregation or agency. 

The above seven strategies for year-end giving were adapted from the webinar presented by Rev. Ed Bailey on November 16, 2017. If you would like to find out more information regarding any of the above methods of giving, do not hesitate to call the Foundation office at 412-232-0650. We are happy to help!

Please note that the information above is general in nature and should not be construed as legal, accounting, tax advice or opinion by the UM Foundation. When deciding to make a charitable gift the donor should contact his or her own tax professional prior to taking any action based upon this information.