Time to Speak — Stocks and IRA rollovers are creative year-end Gifts

Erin Zuber

As an adult, one of the great joys of Christmas is the giving of gifts. There is a special joy in knowing that one’s gift will make a difference in the life of a loved one, friend or perhaps even a stranger such as a gift to a charitable organization that serves the poor or needy. Including one’s parish, parish school or the archdiocese in one’s Christmas giving plans can also be a great way to honor the tradition of Christmas gift giving.

Cash gifts or checks are the most common methods for year-end giving to parishes, parish schools or the archdiocese. However, there are a couple of creative donation methods that may allow donors to make a significant year-end gift without affecting their checking account. The following information is of a general nature and is not intended as specific accounting or tax advice. Donors should always consult with a qualified financial advisor to determine the best option for making a year-end gift.

With the recent highs in the stock market, it may prove advantageous to donate shares of appreciated stocks versus making a cash donation. Donating appreciated stock can provide a charitable tax deduction and avoid capital gains taxes on appreciated stocks donated directly to a parish, parish school or the archdiocese.

Stock gifts can be easily made through the archdiocese by contacting the parish or the archdiocese’s Finance Office at 502-585-3291. Since processing gifts of stock may take a few business days, year-end gifts should be made well before Dec. 31 to be included in one’s 2013 tax records.

A second donation strategy involves the IRA Charitable Rollover provision. This provision, also known as the “Qualified Charitable Distribution,” offers individuals who are older than 70-1/2 the opportunity to make a direct transfer of up to $100,000 from individual retirement accounts to a qualifying charity. Although the donor does not receive a charitable tax deduction for an IRA rollover distribution, the money transferred can count toward one’s annual Required Minimum Distribution (RMD) and the donor will not have to pay income tax on the funds transferred.

The IRA Charitable Rollover can be a particularly attractive option for those who may have multiple individual retirement accounts. It should be noted that the IRA Charitable Rollover is set to expire at midnight on Dec. 31.

As you prepare your Christmas gift list for this year, please consider including a special Christmas gift to your parish, parish school or the archdiocese. If you or your financial advisor would like more information on making a year-end gift or including your parish, parish school or the archdiocese with any type of planned gift, please contact Erin Zuber, director of planned giving for the Archdiocese of Louisville at 502-585-3291. Zuber can also be reached by email at ezuber@archlou.org.

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